Hello, Wineabers, my name is Jesse Meekham, this is podcast number 398 for Wineab, where we teach

you four rules to help you stop them paycheck to paycheck,, get out of debt and save more money.

Why is it when you're spending a lot of money,

let's say you're buying a big ticket out of my car or a house,

why is it that you become desensitized to little upticks in the cost of just about

everything? There's a theory in negotiations where you're anchoring where whoever throws out the

first number has thrown out the anchor and what's really crazy is well let me

tell you first how anchoring works if I want to sell you my shoes, these very special shoes, I could say

something like, yeah, these shoes are unbelievable. They normally go for $400,

you know, $4.50 and I've anchored you at 500.

And that's, I got there first.

You could walk up to me and see my shoes and be like man those

shoes those look great. I'm I want to buy a pair of those. I think I saw a pair like

that over at the JC Penny for $50. You've anchored me now. It's very hard for me to move away from that anchor.

What's really crazy is you can actually be anchored by a number that is unrelated to the thing you're discussing.

So I can even anchor you with something like the temporary... by a number that is unrelated to the thing you're discussing.

So I can even anchor you with something like the temperature

of the outside air, and that does act as an anchor to a negotiation about buying my you know some lemonade from

my stand on the corner. They've proven this again and again that's a very

repeatable experiment that's been done

lots of times.

And I find that fascinating.

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