Here's a short summary of the book. I definitely recommend a read.

Summary Of The Book

Predictably Irrational explains the hidden forces that really drive how we make decisions, which are far less rational than we think, but can help us stay on top of our finances, interact better with others and live happier lives, once we know about them.

1-Sentence Summaey

1. We compare whatever we can, so give others easy comparisons to pick you.2. Free is really just another price, but a powerful one.3. You overvalue what you own.

3 Mains Lessons From The Book

We’re wired to compare things, and our brains do so in the easiest way possible.We compare what’s right in front of us, not necessarily what we should think about or look at that might not be around at the time.So if you give people options to compare yourself or your products to, which are slightly worse, they’ll pick you more often.

1. Give Others Easy Comparison

This has to do with our incredibly strong tendency to avoid losses wherever possible. If we buy something and it’s bad, we lose money. But if we get something for free, the potential downside is zero. It still might be good for us, though, so we value free items much more highly than we should.

2. Free Is Just Another Kind Of Price, A Very Powerful One

We love what we own simply because of our memories and fantasies about it (“I loved wearing this shirt at work/I’ll have so much fun at the game”).We hate losing things we own, whereas we don’t mind missing out on something all that much.Usually, we expect others to think highly of the same things we do (“If I like this carpet, I’m sure all my friends will like it too).

3. The Endowment Effect Causes You To Overvalue What You Own

Intelligent, lively, humorous, and thoroughly engaging, "The Predictably Irrational" explains why people often make bad decisions and what can be done about it.

philosophy

Philosophy

personaldevelopment

Personal Development

education

Learning & Education

books

Books

<ul> <li>Why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin? </li> <li>Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught? </li> <li>Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?</li> <li>Why do we go back for second helpings at the unlimited buffet, even when our stomachs are already full?</li> <li>And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar?</li> </ul> When it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we? In a series of illuminating, often surprising experiments, MIT behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with groundbreaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. Not only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predictable—making us predictably irrational. From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns of thought to make better decisions. Predictably Irrational will change the way we interact with the world—one small decision at a time.

Dan Ariely is the James B. Duke Professor of Behavioral Economics at Duke University. He also holds an appointment at the MIT Media Lab where he is the head of the eRationality research group. He was formerly the Alfred P. Sloan Professor of Behavioral Economics at MIT Sloan School of Management.Dan Ariely grew up in Israel after birth in New York. He served in the Israeli army and when 18 suffered third-degree burns over 70 percent of his body from an accidental magnesium flare explosion during training.Ariely recovered and went on to graduate from Tel Aviv University and received a Ph.D. and M.A. in cognitive psychology from the University of North Carolina at Chapel Hill, and a Ph.D. in business from Duke University.

Dan Ariely

Predictably Irrational

If you wanna know the key points from the book, the following ideas are for you

The Summary Of The Book

The fear is the main cause of working for money. Rich people make money work for them. Job is a short term solution to a long term problem. Emotions should not control your thinking. Money is illusion. Money is not real.

Have money work for you. Don’t work for money.

It’s how much money you keep not how much you make. You need to be a financially literate. Master financial literature. Accounting is very important even though it’s boring. Account analysis is an important skill. Understanding the difference between asset and liability is crucial. Do know the difference! Keep it super simple. Buy an asset not a liability. You have to understand the numbers. Rich acquire assets. Asset is what puts money to your pocket. In financial reporting the story is important. Cash flow tells the story how the money is spending. (Continued in next idea..)

Learn financial literacy

One thing is missing in our current education is how to keep the money. Most people do what everyone does. Fear is the main reason why people play safe. Intelligent people hire more intelligent people. Keep buying income generating assets. Rich buy assets.

Learn Financial Literacy (Continued)

Aquire assets that you love. Stocks and income generating real assets. Build and keep you asset column. Keep your daily job and make your assets grow.

Mind your own business

Accounting, investing, understanding the markets, the law. You should understand the tax advantages. Corporations ear, spend their expenses and then pay taxes on what is left. It’s one of the biggest tax loopholes that you can take advantage of. Owning your corporation is also a protection from the legal part. Think about personal corporations.

The history of taxes

Be bold, take risks. Financial intelligence consists of these 4 skills: accounting, Investing, understanding markets, the law of awareness of accounting. Invest in your financial intelligence. Have fun! We learn by making mistakes. Main reason most people are not rich is because they are terrified of losing. People who avoid failure also avoid success. Learn to manage risk instead of avoiding it.

The rich invent the money

Most people need to learn one more skill to get rich. When it comes to money the only single skill that people know is working hard. You want to know a little about a lot. The main management skills are management of cash flow (assets and liabilities), management of systems (basic economic theory, political landscape, etc) and management of people. Sales and marketing are one of the most important specialized skills. Communication skills such as Writing, speaking and negotiating are crucial for life of success.

Work to learn. Don’t work for money

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

moneyandinvestments

Money & Investments

business

Business

Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

Robert T. Kiyosaki

Rich Dad, Poor Dad

If you want to know how you can win people and make better relationships with people, you must read the summary from the famous book 'How To Win Friends And Influence People's by Dale Carnegie.

PRINCIPLE 1- Don’t criticize, condemn or complain. PRINCIPLE 2- Give honest and sincere appreciation.PRINCIPLE 3 Arouse in the other person an eager want.

FUNDAMENTAL TECHNIQUES IN HANDLING PEOPLE

PRINCIPLE 1- Become genuinely interested in other people. PRINCIPLE 2- Smile. PRINCIPLE 3- Remember that a person’s name is to that person the sweetest and most important sound in any language.PRINCIPLE 4- Be a good listener. Encourage others to talk about themselves. PRINCIPLE 5- Talk in terms of the other person’s interests. PRINCIPLE 6- Make the other person feel important-and do it sincerely.

In a Nutshell SIX WAYS TO MAKE PEOPLE LIKE YOU

PRINCIPLE 1- The only way to get the best of an argument is to avoid it. PRINCIPLE 2- Show respect for the other person’s opinions. Never say, “You’re wrong.” PRINCIPLE 3- If you are wrong, admit it quickly and emphatically. PRINCIPLE 4- Begin in a friendly way. PRINCIPLE 5- Get the other person saying “yes, yes” immediately. PRINCIPLE 6- Let the other person do a great deal of the talking. PRINCIPLE 7- Let the other person feel that the idea is his or hers.  (Continued in next idea)

WIN PEOPLE TO YOUR WAY OF THINKING 

PRINCIPLE 8- Try honestly to see things from the other person’s point of view. PRINCIPLE 9- Be sympathetic with the other person’s ideas and desires. PRINCIPLE 10- Appeal to the nobler motives. PRINCIPLE 11- Dramatize your ideas. PRINCIPLE 12- Throw down a challenge.

Continued

A leader’s job often includes changing your people’s attitudes and behavior. Some suggestions to accomplish this: PRINCIPLE 1- Begin with praise and honest appreciation. PRINCIPLE 2- Call attention to people’s mistakes indirectly. PRINCIPLE 3- Talk about your own mistakes before criticizing the other person. PRINCIPLE 4- Ask questions instead of giving direct orders. PRINCIPLE 5- Let the other person save face. PRINCIPLE 6- Praise the slightest improvement and praise every improvement. Be “hearty in your approbation and lavish in your praise.” (Continued in next idea)

BE A LEADER 

PRINCIPLE 7- Give the other person a fine reputation to live up to. PRINCIPLE 8- Use encouragement. Make the fault seem easy to correct. PRINCIPLE 9 Make the other person happy about doing the thing you suggest

Continued 

In the present book, How to Win Friends and Influence People, Dale Carnegie says, “You can make someone want to do what you want them to do by seeing the situation from the other person’s point of view and arousing in the other person an eager want.” You learn how to make people like you, win people over to your way of thinking, and change people without causing offense or arousing resentment. For instance, “let the other person feel that the idea is his or hers” and “talk about your own mistakes before criticizing the other person.” This book is all about building relationships. With good relationships, personal and business successes are easy and swift to achieve. Twelve Ways to Win People to Your Way of Thinking 1. The only way to get the best of an argument is to avoid it. 2. Show respect for the other person's opinions. Never say "You're wrong." 3. If you're wrong, admit it quickly and emphatically. 4. Begin in a friendly way. 5. Start with questions to which the other person will answer yes. 6. Let the other person do a great deal of the talking. 7. Let the other person feel the idea is his or hers. 8. Try honestly to see things from the other person's point of view. 9. Be sympathetic with the other person's ideas and desires. 10. Appeal to the nobler motives. 11. Dramatize your ideas. 12.Throw down a challenge.

Predictably Irrational

Rich Dad, Poor Dad

How to Win Friends and Influence People

Rishabh Jain