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

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Before you read the first chapter of Smart Money Decisions, kick yourself. Hard. Then do it again, just for good measure. Because no matter how hard you're able to pummel yourself, it won't match the impact you'll feel when you realize how much you overpaid for your house and your car, how badly you bungled your last job change, how you were suckered into buying an extended warranty because of a fearful scenario that a veteran salesperson planted in your head.

Max H. Bazerman is a professor of negotiation at Northwestern University. Unlike many of today's investment gurus, he's applied statistical models to numerous situations in which the price of a purchase was in flux. And he has concluded, beyond any doubt, that certain tactics will almost certainly save you money, while others put the power in someone else's corner, dooming you to pay a higher price than you might have otherwise. Now, you may already know that there's a mere 10 percent chance you'll use an extended warranty, and thus pass it up; about 60 percent of purchasers are able to resist. But you may not know that you should never let a real estate agent know the highest price you are willing to pay for a property. In fact, you're best off if the agent knows only how low the seller is willing to go. With a knowledge only of the floor and no idea what the ceiling is, guess where the price winds up? Right: hovering just over the carpet. There's more to this book than negotiation, though. One chapter persuades you to keep the value of your time in mind when making a purchase. For example, if you research and shop for 20 hours in order to save $120 on a purchase, you've set the value of your time at $6 an hour. (Would you like fries with that big-screen TV?)

Like the best investment books, Smart Money Decisions should have a permanent place on your shelves. You may need it only a few times a year, but you're virtually guaranteed to have more money at the end of the year. --Lou Schuler

Book Description

When it comes to money matters, even the smartest of us can make some pretty dumb decisions. From falling in love at first sight with a house and hastily negotiating a price to blindly following the pack in investment dealings, life is fraught with financial choices that are settled on with gut instinct rather than a level headâmoves that can, and often do, lead to costly mistakes. In order to sidestep major money blunders, resisting first impulses, though not easy to do, is absolutely crucial. This groundbreaking book gives you the tools necessary to think through fiscal issues practically so you don't continue making decisions rashly.

Written by Max Bazerman, a renowned expert in the field of decision making and negotiation, Smart Money Decisions illustrates both how and why we make the decisions we do. Offering an intriguing mental audit of people's psychological relationship with money, it provides the essential understanding you need to identify your own approach to finances, recognize any inherent problems, and determine ways to overcome them.

Bazerman guides you through these basic steps with the goal of permanently improving your financial decisions in a wide range of real-life scenarios, such as buying and selling a home or a car, making investments, and choosing careers. Highlighting the errors too often made in these and other situations, Smart Money Decisions presents the 10 most important money mistakes, including:

Overconfidenceâthe engine that fuels other monetary missteps
Being unprepared â"winging it" leads to mishaps that could easily be avoided
Focusing on beating the other sideâcoming out on top shouldn't overshadow making a decision that will help you in the long run
Ignoring alternativesâhaving your heart set on only one option isn't always the wisest strategy

Packed with sound advice and expert recommendations on how to make more reasoned monetary decisions, Smart Money Decisions is essential reading for anyone who wants to stop making costly financial errors.

Advance Praise for SMART MONEY DECISIONS

"If you need to negotiate anything . . . from a pay increase to buying or selling a houseâthis book covers all the bases. What makes it even better is that Max has taught, tested, and proven his theories with thousands of executives and MBA students." âDonald P. Jacobs, Dean, J. L. Kellogg Graduate School of Management

"Smart Money Decisions will make you think twice before reaching for your wallet. Max Bazerman provides a fascinating, easy-to-understand look at how we make money decisions and offers sound advice that will help you increase your net worth." âRoger E. Stricker, PhD, Intellectual Property Vice President, Lucent Technologies

"By holding a mirror up to our faces, Max Bazerman allows us to see all those dumb money mistakes each of us had no idea we were making. Those dumb money moves, made by even the smartest among us, now exposed and put into perspective, become the springboard from which the author teaches us the solutions. More often than not, those solutions have been staring us in the face all along." âBill Bresnan, Financial Talk Show Host/Author

"It's your pocketbook that Bazerman is protecting. Be smart enough to think about his advice. You'll be entertained in the bargain." âHoward Raiffa, Frank P. Ramsey Professor of Managerial Economics (Emeritus), Harvard University

Customer Reviews:

Learn to avoid common mistakes in business spending decisions.......2006-02-28

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.

A fairly decent overall book on personal finance.......2004-03-11

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.

Read it, but do not expect to solve your financial problems.......2000-11-16

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.

Disappointed with focus.......2000-03-07

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.

Holy Moly, this book helps!.......2000-01-15

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.

Smart Mony Decisions : Why You Do What You Do with Money (and How to Change for

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Smart Mony Decisions : Why You Do What You Do with Money (and How to Change for
Max Bazerman
Manufacturer: John Wiley and Sons
ProductGroup: Book
Binding: Hardcover
ASIN: B000V5S362

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The Changing Roles of Debt & Equity in Financing U. S. Capital Formation (Project Report / National Bureau of Economic Research)

Manufacturer: University of Chicago Press
ProductGroup: Book
Binding: Library Binding

Public Finance | Economics | Business & Investing | Subjects | Books
General | Finance | Accounting & Finance | Professional & Technical | Subjects | Books
ASIN: 0226263401

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The Changing Roles of Debt and Equity in Financing U.S. Capital Formation
Benjamin M. (Editor) Friedman
Manufacturer: U of Chicago Press
ProductGroup: Book
Binding: Hardcover
ASIN: B000W3RRII

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The Changing Roles of Debt and Equity in Financing U.S. Capital Formation
National Bureau of Economic Research
Manufacturer: University of Chicago Press
ProductGroup: Book
Binding: Hardcover
ASIN: B000PSAL1A

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The Changing Roles of Debt and Equity in Financing U.S. Capital Formation
B.M. Friedman
Manufacturer: U-Chicago
ProductGroup: Book
Binding: Paperback
ASIN: B000HX3UMA

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The Changing Roles of Debt and Equity in Financing U.S. Capital Formation
Benjamin M., ed. Friedman
Manufacturer: University of Chicago Press
ProductGroup: Book
Binding: Paperback
ASIN: B000OOZYAI

Book Description

Leading scholars in the field examine the highly topical issue of the future the welfare state in Europe. They argue that welfare states need to adjust and examine which kind of welfare architecture will further Europe's stated goal of maximum social inclusion and justice. This volume
concentrates on four principle social domains; the aged and transition to retirement; the welfare issues related to profound changes in working life; the risks and needs that arise in households and, especially, in child families; and the challenges of creating gender equality.

The Welfare State in the European Union: Economic and Social Perspectives

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The Welfare State in the European Union: Economic and Social Perspectives
Pierre Pestieau
Manufacturer: Oxford University Press, USA
ProductGroup: Book
Binding: Paperback

Labor & Industrial Relations | Economics | Business & Investing | Subjects | Books

Social Policy | Government | Nonfiction | Subjects | Books

General | Politics | Nonfiction | Subjects | Books

Globalization | Politics | Nonfiction | Subjects | Books

All Titles | Qualifying Textbooks - Fall 2007 | Stores | Books
ASIN: 0199261024

Book Description

This book offers an account of the performance of the welfare state in the European Union, and explores its future prospects in an ever evolving setting. The objectives of the welfare state are twofold: to relieve poverty and to provide a sense of security for everyone. It can be shown that over the last four decades the welfare state has been quite successful in achieving these objectives, more visibly in the Nordic countries than in the Southern or the Anglo-Saxon ones. But today the welfare state is at a crossroad. It is facing a variety of challenges that include demographic aging, the changing role of families, increased opportunism, economic integration and declining job security. All these challenges call for a drastic reform of the welfare state, one that requires more control of abuses and more accountability. The authors that it is crucial that all the components of the welfare state be made as efficient as possible, and that if a choice has to be made between alleviating poverty and protecting individuals against lifetime risks, priority should be given to the first objective. This book devotes a chapter to each of the main social protection programs: health care, unemployment insurance, pensions and child policies. In addition, special consideration is given throughout to the necessary interdependence among the State, the market and the family.

EU Law and the Welfare State: In Search of Solidarity (Collected Courses of the Academy of European Law)

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EU Law and the Welfare State: In Search of Solidarity (Collected Courses of the Academy of European Law)

Manufacturer: Oxford University Press, USA
ProductGroup: Book
Binding: Paperback

General | Administrative Law | Law | Subjects | Books

Public | Administrative Law | Law | Subjects | Books

General | Law | Subjects | Books

All Titles | Qualifying Textbooks - Fall 2007 | Stores | Books
ASIN: 0199287414

Book Description

This collection of essays addresses a topical subject of current importance, namely the impact of the EU on national welfare state systems. The volume aims to question the perception that matters of social welfare remain for Member States of the EU to decide, and that the EU's influence in this field is minor or incidental. The various essays trace the different ways in which the EU is having an impact on the laws and practices of the Member States in the area of welfare, looking at issues of social citizenship and the influence of the Charter of Fundamental Rights, as well as at the impact of EU economic freedoms - competition law and free movement law in particular - on both 'services of general economic interest' and on national health-care systems. The significance of the so-called Open Method of Coordination in developing a new compromise on 'social Europe' is discussed, as well as the tensions between market liberalization and social protection in the specific context of this transnational political system are examined. While the various authors clearly have different views on the likelihood of a robust form of European social solidarity developing, the book as a whole suggests the emergence of a distinctive, although partial and fragmented, European Union welfare dimension.

Social Security and Solidarity in the European Union

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Social Security and Solidarity in the European Union

Manufacturer: Physica-Verlag Heidelberg
ProductGroup: Book
Binding: Paperback

Workplace | Organizational Behavior | Business & Investing | Subjects | Books

General | Popular Economics | Business & Investing | Subjects | Books

General | Europe | History | Subjects | Books

General | Politics | Nonfiction | Subjects | Books

Social Security | Politics | Nonfiction | Subjects | Books

General | Social Sciences | Nonfiction | Subjects | Books

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Business & Investing | Qualifying Textbooks - Fall 2007 | Stores | Books

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ASIN: 3790813346

Book Description

Since the 1970s social security in the European Union has been dominated by attempts at reform and cost control. In the last decade of the twentieth century these attempts have been strengthened by the coming European Economic and Monetary Union (EMU). This book offers an overview of the social security system and its development in Belgium, Denmark, France, Germany, Greece, Ireland, Italy, the Netherlands, Spain and the United Kingdom. The national contributions are preceded by an introduction on the development of social security in Europe till the present day, with special reference to the postwar process of European integration and its effects. The book is concluded by two essays. The first examines the danger and opportunities of European integration for social security. The second discusses ethical aspects: what effect will European integration have on the quality of social security in Europe?

Changing Work Patterns and Social Security (European Institute Of Social Security Yearbook Volume 4)

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Changing Work Patterns and Social Security (European Institute Of Social Security Yearbook Volume 4)
Danny Pieters
Manufacturer: Kluwer Law International
ProductGroup: Book
Binding: Hardcover

Labor & Industrial Relations | Economics | Business & Investing | Subjects | Books

Labor & Industrial Relations | Politics | Nonfiction | Subjects | Books

Social Security | Politics | Nonfiction | Subjects | Books

General | Law | Subjects | Books

Labor & Employment | Business | Law | Subjects | Books

Reference | Law Practice | Law | Subjects | Books

Book Description

The one-job wage earner, for so many generations a bulwark of industrialized society, has all but passed away. We perceive this as contemporary reality, yet it has not been easy to cite the facts and figures necessary to build a stable foundation for the social security of tomorrow's population. Now the European Institute of Social Security, a leading multidisciplinary research group dedicated to exploring the frontiers of social security, has taken the crucial first steps with an in-depth examination of the new and atypical work relations that are emerging. The research and conclusions in this book will greatly help policymakers to identify the areas in which existing social security systems can meaningfully accommodate the new realities of work. Changing Work Patterns and Social Security records the proceedings of the 1999 Conference of the EISS, held at Limassol in Cyprus, to consider the relations of atypical work patterns and social protection. Among the important issues raised are: + the real extent of the atypical work phenomenon; + the difficulties relating to the assessment of the incomes of the self-employed; + the social protection of the farmer in Europe; and + the shortcomings of existing social security systems vis-a-vis self-employment and part-time work. The analysis of current trends presented in this book will interest and inform anyone -- whether in government, business or academia -- concerned with the development and future of social protection systems, not only in Europe but throughout the world.

Codex: European Labour Law and Social Security Law

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Codex: European Labour Law and Social Security Law

Manufacturer: Kluwer Law International
ProductGroup: Book
Binding: Paperback

General | Law | Subjects | Books

Labor & Employment | Business | Law | Subjects | Books

General | International Law | Law | Subjects | Books

International Law | Law | Professional & Technical | Subjects | Books
ASIN: 9041116826

Book Description

Because labour and social security issues have arisen in many disparate ways since the inception of the European Communities, there has been no consistent classification of European law in this area. This groundbreaking book at last rectifies that situation, presenting as complete and up-to-date a codification as possible of this body of law, with texts of the most important documents and direct reference to print and online sources of all relevant conventions, regulations, directives, decisions, recommendations, and agreements. The codification encompasses all European Union texts on labour and social security, as well as all pertinent Council of Europe documents. Among the texts reprinted in full are the following: + all relevant portions of the Treaty on European Union, the Treaty Establishing the European Community, the Treaty of Nice, the Charter of Fundamental Rights of the European Union, and the European Convention on Human Rights; + the Community Charter of the Fundamental Rights of Workers; + all Council directives on equal treatment; + all Council directives and Commission decisions on workers' participation and European Works Councils; and + the European Social Charter. The expert codification is the work of ten notable contributors: Marco Biagi, Roger Blanpain, Chris Engels, Frank Hendrickx, Antoine T.J.M. Jacobs, Gillian Morris, Frans Pennings, Tiziano Treu, Willy van Eeckhoutte, and Manfred Weiss. Codex: European Labour and Social Security Law assembles this scattered collection of texts into an easily-accessible corpus for the first time. It will be of immense value as a source of first instance for practitioners, researchers, and students alike.

Decade Beyond Maastricht:: The European Social Dialogue Revisited (Studies in Employment and Social Policy)

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Decade Beyond Maastricht:: The European Social Dialogue Revisited (Studies in Employment and Social Policy)

Manufacturer: Kluwer Law International
ProductGroup: Book
Binding: Hardcover

International Law | Law | Professional & Technical | Subjects | Books

General | International Law | Law | Subjects | Books
ASIN: 9041121633

Disability Policies in European Countries

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Disability Policies in European Countries
Wim Oorschot
Manufacturer: Kluwer Law International
ProductGroup: Book
Binding: Paperback

General | Law | Subjects | Books

Labor & Employment | Business | Law | Subjects | Books

Labor Law | Specialties | Law | Subjects | Books

Social Security & Welfare | English Law | Law | Subjects | Books

Social Security | Politics | Nonfiction | Subjects | Books

All Titles | Qualifying Textbooks - Fall 2007 | Stores | Books
ASIN: 9041115919

Book Description

This book aims to review and discuss the disability policies that have developed in six Western countries in recent years.What have been the major changes? Have the disability policies of these countries become more similar in the course of the 1990s? If so, is it possible to identify a closer relationship between the emerging EU Disability Strategy and national policy developments in this area?

The countries discussed -- Sweden, Denmark, The Netherlands, The United Kingdom, Ireland and Spain -- are al represented in an academic network on vocational rehabilitation of disabled people that seeks to understand and compare policy developments in the field.

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