Being cost-conscious when making little purchases is where you can often rack up big savings.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 422
When we incur a loss or expense, we prefer to hide it from ourselves within a bigger loss or
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 425
expense.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 426
stretch your enjoyment from the good things in life, you should “segregate gains” whenever possible. Spread them out.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1025
Weber’s law implies that the pain of two moderately bad experiences will typically exceed the pain of experiencing both at one time.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1032
The more choices people face, the more likely they are to simply do nothing.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1078
“extremeness aversion.”
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1206
once people develop preferences—even small ones—they tend to view new information in such a way that it supports those preferences.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1791
they tend to discount any new information that doesn’t fit their preconceived opinions and feelings.
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 1792
Any individual who is not professionally occupied in the financial services industry (and even most who are) and who in any way tries to actively manage an investment portfolio is probably suffering from overconfidence. That
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics, loc. 2246
