Comments on: Why Smart People Make Bad Spending Decisions

By: william

william — Tue, 05 Jul 2011 01:44:51 +0000

But, next time, slow down on the hatred, dude…so wasn’t necessary

//citation needed.

show me where I demonstrated *hatred* yeah I said the examples were terrible. i even said they sucked. even labeling that as harsh criticism is a stretch, but to say that was hatred? please. are you suggesting that criticism is not permitted? I’m, really curuous what consituted hatred in what I said.

and if this is based on research I wish we had some more of the research because so much of this article was written as opinion. nowhere is data cited.Instead we get “Bet most people would” and then in example two… why it’s the exact same phrase “I bet mot people would”. no reference to studies or research or polls or any actual facts. this sounds like some guy’s blog expressing his opinion. Now I do know that what you’re saying is based on research and is sound advice but I didn’t know that because of this blog entry, I know it because I read it elsewhere. if that’s harsh, sorry man, that’s not hatred, thats the facts as I see it.

By: Ornella Grosz

Ornella Grosz — Tue, 05 Jul 2011 00:59:37 +0000

The examples are not just from me but from research. The point of the article was not to illustrate money as a sole factor. As I state in the first example, we are not robots, but rather emotional creatures which impact our decisions. And I do say the $100 should be valued equally. It’s our justification for the expectation of losing versus the unexpected bank fee that changes the value. In addition, I had written this article (short) so readers may manage their money from a different light and why at times (I do it, too) we make bad decisions when we allow our emotions to interfere. I’m in no way telling anyone what to do with their money. Plus, it’s interesting to see how many readers can view the same article differently and take it out of context. It’s ok if you don’t like the examples. Everyone is entitled to their own opinion. But, next time, slow down on the hatred, dude…so wasn’t necessary ;) Have a good evening.

By: william

william — Mon, 04 Jul 2011 23:22:24 +0000

@ ornella

The premise behind the article is solid. unfortunately (for me anyway) the poor examples stood in the way of the point to where the point was not just obscured but actually in the first case, I think the opposite point was made by the example. $100 SHOULD be valued equally and yet I think the gambling vs bank fee is justification of why they are not valued equally, and that’s because it isn’t always jsut about the money. Often there are other considerations involved.

I would say that better examples where money was the sole factor would’ve made for a better article

By: Ornella Grosz

Ornella Grosz — Mon, 04 Jul 2011 00:56:57 +0000

@William. Wow, William. I apologize you didn’t like the article. Well, so you know the example are based on behavioral economics. Basically, it’s about the emotions behind our decisions. “Expectations and “simple transactions” are behind our emotions decisions on how we VALUE money. The point of the article was about how we tend to change the value of a dollar when we justify ourselves for the expenditures. If you would like, you can learn more about me at http://www.moneyliciousblog.com and at http://www.moneyliciousbook.com. I’m licensed in the financial industry. Have a great Fourth of July.

By: william

william — Sun, 03 Jul 2011 22:24:33 +0000

your examples are really… REALLY terrible.

comparing an evening of gambling with a bank fee is incomparable. An evening spent with friends provided entertainment. Also most sane people go in w/the understanding that they may lose. there is a built in expectation. there is also the possibilit of winning. There is “winning” a fee with the bank. If the bank mistakenly puts cash in your account, it will be taken back. And what bank fee costs $100? if I’m hit with a bankfee of $100 then a) I’ve got a reallllly crappy bank and b) I’ve either seriously mismanaged my bank account and/or got some serious financial issues. Either way I’ve got some serious problems which will require my time and attention and may also involve me looking for a new bank. None of this has squat to do with the money lost in bank fees. It is the hassle of dealing with the sitation.

As for shirts and beds…. buying a shirt is a simple transaction. buying a bed is not. is the bed in stock is the first issue. assuming yes, Is the other company more reliable? or less? do you have experience w/either company? will there be a delivery fee? or a hail away fee? that could easily negate any savings? In all lilihood I would just say to the bed store guy “hey can you price match the other store?” and he will likely say yes, because I’ve done this myself.

Sorry dude, your examples suck and your evidence is “you think the answer is such and such.” Sorry, but I want to see some data not opinion.

By: Ornella Grosz

Ornella Grosz — Fri, 01 Jul 2011 18:15:34 +0000

I enjoyed reading everyone comments. It is always interesting to see how people view money. try not to take the examples to heart, just take the learning lesson on how we view and value money. Have a great Fourth of July!

By: Kate

Kate — Fri, 01 Jul 2011 17:56:46 +0000

The tile will make your home worth more and probably be more durable not to mention more enjoyable. That expenditure was an investment, not a throw away purchase, so it’s hardly an apples to apples comparison. There may be a big difference in delivery fees at different furniture stores, so that felt like a bad example.
I used to get irritated at atm fees being high in the building I work until I realized, I would easily pay someone a dollar and a quarter to run and get me the cash.
Personally I get really anal about large expenditures and explore every possibility of car model and accessory before I buy, which I do in the most frugal way possible. Lunch for every day, I don’t fuss over because that time adds up and I don’t think it’s worth it.
Time is worth more than money.

By: J. Money

J. Money — Wed, 29 Jun 2011 23:28:18 +0000

@Edward Antrobus – No way – that’s my life (and now career) when I’m on the road ;) I don’t need to bring my laptop if I’ve got my iPhone w/ me on shorter trips!
@Kristin – Yup! If everything seems “right” at a store, I don’t risk it at another either just for a few bucks. Especially w/ clothes and stuff that can be tweaked a bit per item (or like shoes that all fit differently even though they’re the same size).

By: Kristin

Kristin — Wed, 29 Jun 2011 02:33:52 +0000

Like Joe and J.Money said, I would also factor in time, gas, and effort here. My boyfriend is all about trying to find an awesome deal online. I, however, especially with more expensive clothes or gear, like to go to a store and try things on, talk to the salesperson, make sure the item is exactly what I want/need. If something is not an impulse buy and I’ve been looking/researching for awhile, I’m willing to drop a few extra bucks to get it right there and then, because I know I have my item, it will fit, and I won’t have to wait/ship/return/miss-a-flash-sale anything. He spends a lot of time reselling or returning items. To be mentally done with the purchase is worth a few dollars to me. So I don’t treat every dollar the same, and I don’t think it’s always appropriate to do so, either – there are often other hidden effects or benefits involved. (Maybe the first furniture store can deliver when you will be home, where the other one will be a hassle).

By: Edward Antrobus

Edward Antrobus — Wed, 29 Jun 2011 02:29:12 +0000

J, Somehow I survive with a basic QWERTY phone and no data plan. Try it sometime. :)