Why Smart People Make Big Money Mistakes
byGary Belsky
Why Smart People Make Big Money Mistakes, aims to help you get a deeper understanding of behavioral economics, and bringing awareness on ways in which you are prone to thinking about money, and through this awareness and knowledge, begin to make behavioral changes to be more emotionally and fiscally smarter about how you handle your money. An important principle from the book was understanding the mental accounting we place on money, or how people tend to that money differently, depending on where it comes from, where it's kept or how it's spent. It can be good, when used for prioritization like setting aside money for education or bad, like treating tax refund money as shopping spree money. Many more behavioral economic related biases and mistakes are discussed in the book with plenty of examples and questions to gauge your financial risk level.
Motivations to Read
Growing older, I've put more priority on increasing my emotional intelligence. I would also go on to go to business school and learn about the financial markets. Learning more about behavioral economics, would help me understand how emotions come into play with financial decision making and possible improve my personal financial mindset and knowledge but better understanding the psychological causes that lead to bad money decisions.
3 Reasons to Read
- You want to get your personal finances in order
- Learn more about behavioral economics
- Become more proactive and aware to your emotions in regards to financial decisions and learn to spot bad money habits
