Customer Reviews

Smart Money Decisions: Why You Do What You Do With Money (and how to change for the better)

5 star:		(5)
4 star:		(3)
3 star:		(1)
2 star:		(1)
1 star:		(0)

 

 

I have read lots of books about behavioral decision-making and behavioral finance. When I bought the book I initally expected it being similar like many other books covering this subject. But while I was reading I just could not stop, though I found many examples I knew already. But the style of Bazerman's writing attracted me (though English is not my mother language) so much, that I studied the book from the first to the last page. The examples of bounded rationality of many human decisions and its 'sub-optimal' if not sometimes costly results are very well explained. The solutions to improve the decision-making processes are presented very clearly at the end of each chapter.

For those who work in the area of behavioral decsion-making or behavioral finance the book is an excellent comprehension and an 'add-on' to the basics that are partially covered in other publications. For beginners the contents is easy to understand: The examples deal with important decision problems everyone of us is confronted with at least once in her/his lifetime. If people try to follow Bazerman's advices, they probably will not only imrpove reasoning, but might save some money at the next purchase of a new car or at other occasions. Most important for me was the description about the value of time.

This book has the effect of sitting down to a heart to heart talk with an admired family friend who knows you well enough to appreciate your strengths, forgive your shortcomings and believe in your capacity to change.

After the first chapter, even an unregenerate spendthrift like me will be thinking about patterns we didn't recognize as obstacles, especially in the realm of money management. And that is the key, says Prof. Bazerman. The very idea of money mistakes may be daunting, but what this book does very clearly -- painlessly and with good humor -- is prescribe ways to prepare for, circumvent and correct them.

Every chapter takes examples with which it is easy to identify, from buying a car or a house to negotiating a new job, and explores alternative strategies to show how they actually do affect the outcome. And recapping key pointers at the end of each chapter reminds us (for instance) that not just cold cash but time is money, and a critical element we might not recognize in many of our decisions.

What I like best about Smart Money Decisions is it gets right down to business without condescending or pandering to late-blooming readers like me, who will really benefit by being honest with ourselves about what we need to do to change our fiscal ways. Read it and reap!

It starts with interesting but simplistic common sense advice about buying houses and cars, then falls flat. The author never seems to be settled on whether he wants to help consumers or large companies. And much of the advice is weak.

In the fourth chapter, for instance, after making a hopelessly simplistic but somewhat credible case against buying title insurance when buying a house, he forgets to include the vital fact that the seller pays for title insurance in almost all cases. Later in the book he gets lost in his own story about budweiser without making any point at all.

Like so many books about finance, this book has two flaws. It does not have enough content to warrant a full book, even a skinny one like this. When it does start to wade into deeper water, one senses the heavy hand of an editorial assistant, too weak in the comprehension of numbers, trimming and constricting the story to the point that the reader can't find the significance of its message.

This book is great - really worth buying.

Bazerman is well known as a management and negotiations guru. What's special about this book is he doesn't write like an academic. Instead he gives specific, easy-to-use tools you can literally copy down and use step-by-step. If you've ever felt like an idiot in real life dealing with situations like managing money for your retirement or encountering a high-pressure real estate hawking your dream house, this is the book for you.

Bazerman's book is easy to read, and it's specific. His "Advice" tips at the end of every chapter tell you exactly what to do in personal situations that range from buying a car to making decisions about insurance to job negotiations. This book - unlike a lot of academics' work - not only analyzes the dynamics of situations, it tells you exactly what to do to come out on top. And it's human and readable to boot. I really related to what he was saying, and I laughed when he wrote about his own experiences and his wife's reaction to them (she sounds like a hoot).

I wish I'd had Bazerman's Advice "tips-list" about real estate next to me the first time I bought and sold a house. It would have saved me a bundle!

This is one self-help book I've bought I'm actually USING.

This books allows us to ponder financial stuffs that never came across our minds before, and leaves us guessing about better future options. This highlights the best part and the not-so-best part of the book; by leaving rather open ended solutions at the end of certain chapter, we are left on our creativity to formulate the best solution for ourselves. This, indeed, is a very logical way to lead readers. Rather than spoonfeeding them with hard information, we are allowed to evolve from the materials given. However, the not-so-best part is when you really can't think of any better way out of your own situation, then, by all means, sulk; the answer isn't going to be found in the book! Plus, if you think real hard about the material that you've just read, you'll realize that you could've thought of it if you think real hard... which you didn't! And by explaining the psychology behind each financial decision, we are able to identify our financial behaviour and this certainly helps a lot!

Read the whole book last night. I consider myself reasonably savvy when it comes to negotiating and thinking about how I spend money. But this book demonstrates the common money decision mistakes that even smart people make. Why not know what the car salesmen or realtors know about this stuff? I highly recommend it.

Even when you think you know how to spend your money wisely, it's harder, especially if you have to deal with someone else--the car salesman or the real estate broker. This is the book to read before you have to make major decisions. Why? It walks you through what you, the consumer, is thinking as well as what the other person in the negotiation is thinking. That way, you'll be able to anticipate the answers to your questions and have smarter responses. If you're planning to buy a car, house or buy almost anything, read this book first!

Most persons at one time in their lives have found themselves spending more money on a product or service than one should have. The author of this book sees the same mistakes in business spending decisions. This book is designed to help readers analyze not how much they spent on something, but why they spent what they did, all in an effort to aid them in making smart money decisions.

There are many behavioral factors inherent to financial decision-making. Identifying and understanding those factors is key to maintaining- long-term financial health for an individual or an organization. This book contains a wealth of insights on financial decision-making factors and strategies. Among them:

· Identify and avoid money traps
· Understand how to identify and use a "bargaining zone."
· Recognizing how much your time is worth-and how often you give away your time.
· Choosing between the often conflicting impulses to do something you want, rather than something you think you ought to do.
· Using your impression of fairness wisely in negotiation.
· Keeping from falling victim to the "winner's curse."
· Breaking through the "fixed pie" assumption of negotiation.
· Remembering to define the long term financial objectives when placing a value on something.

The author also adds keen insight in recognizing and implementing tactics to navigate the world of transactions because in any transaction or negotiation, there is a struggle for power between the involved parties.

This book from Prof. Bazerman is very interesting and give us some useful hints about money management and negociation in general. Some ideas about our mistakes (for instance our tendency to possess inappropriately positive assessments of ourselves and our tendency to overweigth vivid information) can guide us through everyday life. But do not expect miracles.

This book receives a fair grade with regard to personal finance. At times I found the book to be a bit mundane. Check it out at the library and skim it before you buy.