9 Money Lessons from Dollars and Sense

If you want to be a millionaire,

You need to avoid money mistakes.

Here's 9 Money Lessons from Dollars and Sense: pic.twitter.com/72W0Dm9drY

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Fairness Value

What's worth more:

1. A locksmith whos done in 10 minutes
2. A locksmith who takes 3 hours

Your brain is wired to tie the value to the effort put in.

It means, your brain is wired to value the poor locksmith, not the experienced one.

Sell your efforts.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Effort Language

Effort language is one of the ways you can use to sell your efforts.

Here's the language people use:

• Artisinal
• Handcrafted
• Fair trade organic

This language implies significant effort, which gets you to take more money out of your jeans.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Relative Value

You don't always have clear indicators of value.

When this happens, you make choices on the relative values.

Would you rather make $150k when your neighbors make $300k or

Would you rather make $80k when your neighbors make $50k?

Most choose 80k. A mistake.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Sunk Costs

Once you've invested in something,

You shouldn't think about how much you've already invested in your:

• Job
• Stock
• Home
• Career
• Relationship

Each decision should be based on what the best path forward is, not the past investments made.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Positive Pain of Paying

The timing of your payment can influence how you enjoy an event.

It can also determine whether you're more likely to spend money.

If you want to enjoy your vacation, pay for it as far in advance as possible and make it all-inclusive.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Negative Pain of Paying

You can use the pain of paying to decrease your spending by focusing on the negative pain.

For example, don't use gift cards or store programs, which lower the friction and pain of paying.

If you want to lower your spend, PAY in CASH.

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Price Anchors

An anchor price can be any figure you associate with your decision.

Anchoring shows the importance of early decisions or pricing cues, which establish a value in your head.

For example, does a crossed-out $1,499 beside a $999 price truly indicate savings?

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Opportunity Cost

What are you giving up when you buy something?

It's the financial equivalent, When you say YES to something, what are you saying NO to?

When you buy a pair of shoes, are you saying no to a copywriting course?

Always ask, what am I saying no to?

— Clint Murphy (@IAmClintMurphy) June 1, 2023

• Decoy Options

They always get us with this one.

You're given three options:

• Print - $125
• Digital only - $59
• Print + Digital - $125

By offering a decoy "Print Only", buyers increased the purchase of Print + Digital from 32% to 84%.

Beware the decoy, my friends!

— Clint Murphy (@IAmClintMurphy) June 1, 2023