Why'd You Buy That?

Dan tells what it was like to drive across the country in a pandemic.  Drew shares how coronavirus has effected his dining out expenses  Dan and Drew talk about Mother's Day spending and Dan tells the totally unique gift he got his wife for Mother's Day.

*** OUR PODCAST HAS CHANGED NAMES TO "WHY'D YOU BUY THAT?" ****

We hope this change emphasizes how we want this to be a fun discussion about the motivations behind our purchases helping all of us to buy things with less guilt and more joy. The :shrug: icon hopefully reflects the confusion we all sometimes feel in sorting out our feelings about our purchases. We hope you like the name change and would love to hear any feedback you might have

Dan and Drew start off by asking "How far would you go to save $50?".  Then they talk about perceptions of money as a child and how that changed when they became adults.

Dan talks about receiving the IRS stimulus and what that was like.  Finally, Dan and Drew talk about whether it is worth it to pay a realtor to sell you home, even in the middle of the coronavirus pandemic.

In this episode, we talk about the effect social distancing has had in our families, Drew talks about the odd experience of getting takeout from Five Guys during Coronavirus (spoiler: a gun is in the story) and Dan explores pitfalls of doing shared purchases with neighbors in a segment called "How I ended up spreading pine needles in my neighbor's yard."

CoronaVirus, Dan’s Sells His Juicer, Manuals and Staying On Track Toward a Goal

Why are you more likely to attend a football game in the dead of winter in a blizzard if you paid for a ticket instead of gotten it for free?   It's hard to let go of things we have invested in, even if continuing with them is not in our best interest.  This is the phenomenon of sunk costs. 

In this week's podcast, Dan and Drew explore the psychology of sunk costs then talk about the virtues of thinking about some purchases as "experiments" so that we can more easily let go of them if they don't work out.

Then, Drew has a conversation with Chris Chapman, the founder of the Next Level Minds podcast about money lessons he learned through the years. 

Thank you to: 

Chris Chapman: Next Level Minds Podcast 

Reference: Psychology of Sunk Costs

Arkes, Hal & Blumer, Catherine. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes. 35. 124-140. 10.1016/0749-5978(85)90049-4.

Dan and Drew discuss the tricks used by retailers to get us to spend more.  Also we ponder a great mystery of the universe, how long is too long to take something back to COSTCO?  Dan provides a, um, case study.   You gotta hear it.

But before we get into that piece, Dan and Drew discuss when its best to challenge your frugality mindset and spend more in areas that are providing real value in your life.

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Source articles - 

MSN - https://www.msn.com/en-us/money/savemoney/20-ways-companies-trick-you-into-spending-more-money/ss-BBZmOK9

Tim Ferris - https://tim.blog/2019/12/30/where-are-you-still-using-single-ply

Ep 10 - Selling Your Old Stuff Online (Is It Worth It?), 'Why'd You Buy That' and Two Highly Requested New Features

It's 2020, and inspired by an article on CNBC, Drew and Dan discuss what things to give up in the new year to be successful.  Also, Drew and Dan so a round of "Why'd You Buy That" and find out which stock if you had bought $100 of it in the year 2000 would today be worth $62,544!

Sources: 

How Much
https://howmuch.net/articles/best-performing-stocks

CNBC Article
https://www.cnbc.com/2016/12/30/13-things-you-should-give-up-if-you-want-to-be-successful.html