One of the first things Economics textbooks teach you is this sentence –
“Economics is rational management of scarce resources”
It’s pleasing to finally have someone in popular literature redefining this sentence, @Morgan in his books says “You are not a spreadsheet. You are a person. A screwed up emotional person”
Almost a decade that I have been around Economics & Psychology as subjects, arguing the lack of importance given to the emotional context of money related decisions.
As a part of my undergrad thesis, I tried to incorporate emotional well-being as a part of Human Development Index using Sir Amartya Sen’s Capabilities & Functionings Approach.
While research might be light years away in integrating real human behaviour with economic decision making, Psychology of Money is a candid read talking about this topic.
How we as humans are not rational and yet reasonable most of times, in most of our decisions. While in theory, we are rational and always trying to maximise marginal utility – that is not the case in our day-to-day and Morgan explains this beautifully in his book.
It’s a short and easy read (not a lot of jargon). Much recommended if you are looking to evaluate how you think about money.