The People Who Need To Overcome Temptation

Money Actually Becomes Even More Difficult Than Other Things Because It's Very Hard To Imagine What The Benefits Are To Saving. So, Imagine That You See A New Bicycle, A New Pair Of Shoes, Or Something Today. You Know Exactly What You Are Giving Up If You Are Not Buying It, What Are You Gaining In The Future If You Are Not Getting It. So, You Are Giving Up The Bicycle Today, What Is It In The Future? What Will Happen If You Send Another $1,000 To Your Retirement Fund? What Difference Will It Make? It Is Very, Very Hard To Figure Out.

It Is Helpful To Think Of People As Having Two Fundamental Motivations: The Desire To See Ourselves As Honest, Good People, And The Desire To Gain The Benefits That Come From Cheating - On Our Taxes Or On The Football Field.

I Don't Think We Should Go Around Life And Being Miserable All The Time And Feel The Pain Of Paying. It's A Question Of What Categories We Want To Spend More On And What Categories We Want Feel That We Are Spending Too Much On And We Want To Cut Down.

Money Is Very Difficult To Think About. So, We Think About Money As The Opportunity Cost Of Money. So, We At Some Point Went To A Toyota Dealership And We Asked People, What Will You Not Be Able To Do In The Future If You Bought This Toyota? Now, You Would Expect People To Have An Answer. But People Were Kind Of Shocked By The Question. They Never Thought About It Before. So, The Most We Got Was People Said, "well, If I Can't Buy This Toyota, If I Buy This Toyota, I Can't Buy A Honda." What Is This Thing? What Is This Value Of Price? Very Hard To Think About It.

If We All Make Systematic Mistakes In Our Decisions, Then Why Not Develop New Strategies, Tools, And Methods To Help Us Make Better Decisions And Improve Our Overall Well-being? That's Exactly The Meaning Of Free Lunches- The Idea That There Are Tools, Methods, And Policies That Can Help All Of Us Make Better Decisions And As A Consequence Achieve What We Desire-pg. 241