 book Misbehaving by Nobel Prize winner Richard Thaler. If you want me to save you a lot of time, I'll tell you about today's book of the day instead of you having to read, let's see, it's 360 pages, 357 pages of small print. I read it all. So let me sum it up for you real quick and why it's important because this explains why, for example, a billionaire can be more depressed than somebody who's making a hundred grand. It explains why J.C. Penney went broke when they got rid of coupons and just set all their prices low. It explains Las Vegas, explains why people behave weird at casinos. I'll start by saying this, classic economics put forward the concept that humans act logically with their money. Now if you've been listening to me for the last whatever five, six, seven years, I've been talking about the 25 cognitive biases. These are psychological biases like Kantian fairness, reciprocity bias, commitment consistency bias, social proof bias, reward bias, pain bias, there's all of the Pavlovian responses. And so what happened is classic economics, even like Adam Smith with the invisible hand that a lot of modern capitalism is based on, is based on the thought that humans are rational actors, they're going to make good decisions. Okay, they're going to make the logical decision with their money. When in fact, here's an example of the opposite. Coupons. There's a famous story. This new CEO came to J.C. Penney's. He was going to turn the brand around and the way he was going to do it was by setting all the prices low. Forget coupons for 50% off. We'll just set the price 50% off all the time and shoppers logically should be happier with that because you don't have to go through all the trouble of collecting coupons and all that. Lo and behold, that's not what happened. That CEO got fired. It was one of the big disasters for his magazine, you know, has how J.C. Penney never recovered from this everyday low prices. But if you think about it, why would you want coupons? They make no sense. But humans are dopamine addicts. It's kind of why social media works, why Instagram reels work, why TikTok reels work, because we want this high, you know, we want, oh, I saved money. And so Walmart built their brand all around that. And Amazon, of course, has done that every, you know, and dollar store all the rise of these like really cheap, which isn't now the 99 cent store is now like more than that because of inflation. But anyway, so there's an example. Here's another example. If you go to Vegas with 100 bucks, you gamble in the morning, you know, beginning of the evening and you go up 10,000 bucks. Okay, of course, you're going to get this huge dopamine rush. But you know, it's more powerful than dopamine, the negative bias. And one of the cognitive biases is the negative bias of the brain. And the media knows this. That's why they always show you negative headlines, not positive ones. But you're back in Vegas, you made 10,000. So you feel a little bit, you know, up, you feel a little amazing. But then you dropped 5,000, you lose half of it. Guess what? That loss, even though you're up, you're up almost $5,000, you started with 100, you went up to 10,000, now you're 5,000, you actually walk away from the casino not feeling good. And that weird, once again, humans are not rational actors. That's what this books about behavioral economics studies, how humans behave, not when they're logical, but how they actually react in real world situations, like shopping at JCPenney's or Walmart are going to, you know, the win casino in Vegas. What's another example of this? A billionaire, let's say somebody goes up, they get on the Forbes list, they're worth $2 billion. And let's say they lose, I don't know, pick a number, 90% of it, they lose almost all of it. Okay, so now they're worth 100 million, 200 million, 300 million bucks. That loss of wealth, even though at absolute dollars, they're still one of the wealthiest people on earth, they will experience more likely, you know, more depression, more negative hormones. You have, you know, you have all the positive hormones in the brain and then you have the cortisol, the stress inducing hormones. And so somebody who goes from making 100 grand and then their boss is like, I'm going to give you a raise to 300 grand. If you put them under an fMRI machine, that person who jumped from 100 to 300,000 probably is happier than the former billionaire who was at 2 billion and dropped to 200 million. We don't go by absolutes, we go by contrast. That's one of the 25 cognitive biases the human brain is contrast bias. So it's, I think the takeaway from this book, and I wrote an article about this, I'll put a link, you should go to my Tai Lopez blog and just it's free, you can read a little more in depth about what I'm talking about now. Also you should join my daily free book of the day summaries just like this. I send it to your email and it's not spam, you get unsubscribed anytime, you don't have to pay any money for it. So click the link below, subscribe here to my channel, of course, if you want more like these, listen, I do the reading for you and it's true the more you learn, the more you earn. You want to transform your life, whether it's health, wealth, love, happiness, the what I call the four pillars of good life, it all comes down to learning from the best. One of my 67 steps is go straight to the top. If you're going to learn something about economics, you might as well learn from Thaler. Yeah, not that everything that a Nobel Prize winner says is right, but more likely than listening to a rando, right? So I think the main takeaway that from this book for me is that just continue to have to rise above your animal instincts with how you invest your money, with how you think about losses, with how you think about things what called sunk cost. So maybe you invested something and you won't sell it. Sometimes you got to get out of it even if you put a lot of money in it because that's an illogical irrational this sunk cost feeling like, well, I'm already in it. You see that in relationships, people stay in a relationship with someone they don't like anymore. Why? Because, well, spend this many years with them, I might as well continue. Well, that's a stupid way to think about life. So yeah, to get above average results, especially when it comes to making money, you're going to have to think differently than the masses. And so it's a good book, you can pick it up, Amazon. But go check out my Tai Lopez blog. I've got a link to the book. But get on my daily emails and subscribe here just because you want to change your life this year. This is the quick distance is five, six, seven minutes. And if you kind of absorb this stuff and make it second nature, you're basically absorbing what took Richard Thaler a lifetime to understand this behavioral economics. Like I said, economists and classical theorists used to think humans would act very logically. Like they didn't care about coupons or if there were a billionaire and they dropped to 200 million, they'd still be happier than somebody who's making 100 and jumps to 300. But the newest field of psychology and also Daniel Kahneman's another Nobel Prize winner that worked with Thaler on this, the new understanding is no. And it's kind of common sense. We're emotional beings and you're going to have to control and regulate your emotions, especially when it comes to your financial and economic behavior. So good luck out there. Talk to you soon.