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The Behaviour Gap: Simple Ways to Stop Doing Dumb Things with Money
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The Behaviour Gap: Simple Ways to Stop Doing Dumb Things with Money

3.69  ·  Rating details ·  1,046 ratings  ·  154 reviews
Why do we lose money? It's easy to blame the economy or the financial markets-but the real trouble lies in the decisions we make.

As a financial planner, Carl Richards grew frustrated watching people he cared about make the same mistakes over and over. They were letting emotion get in the way of smart financial decisions. He named this phenomenon-the distance between what w
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Hardcover, 178 pages
Published July 26th 2012 by Portfolio/Penguin (first published January 3rd 2012)
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Abo Ahmad
علاقتنا بالمال دوماً متوترة..هذا الكتاب اللطيف ليؤكد لك أنك لست بحاجة لأن تكون خبيراً مالياً حتى تأخذ قرارات سليمة.
رغم أن أغلب الأمثلة مبنية على واقع غير واقعنا العربي لكن فيه بعض الاستلهامات.
كمبدأ الادخار المبكر وكيف أنه عليك تجاهل النصائح من الغرباء وأن كثرة الخطط لا فائدة منها، وكيف أن المشاعر مكلفة حين ترتبط بالاختيار غير الموفق.
أعجبني فيه أمرين:
١- البساطة
٢- الصدق
فرغم أن المؤلف مستشار مالي وخبير تخطيط استثماري إلا أنه لم يمارس دور الخبير في النصح وقال لك بكل اختصار : السوق لا يمكن التنبؤ ب
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Chuck Rylant
Jul 31, 2012 rated it it was amazing
I've been in the financial planning business for a quite some time and read just about everything in the industry, and The Behavior Gap is truly original thinking. Most of the books in the field are advice driven whereas this book is more about challenging your thinking about money. This forces you to think about challenging questions about how you deal with your finances.

This is a good book for both the consumer and the financial planner. I think a lot of financial advisors tend to get caught u
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Ahmed Awami
Mar 01, 2017 rated it really liked it  ·  review of another edition
I wished the book was going to dig deeper into behavioral economics and why we behave the way we do. But it turned out to be a beginner's level mainstream book.
In chapter 4 he got philosophical and talked about how capitalistic societies evolved to pursue wealth and falsely equate wealth to happiness and success.

3-stars book, but chapter 4 was excellent and hence the 4 stars.
Mehdi Hassan
Jun 06, 2017 rated it really liked it
a short book on mass mentality about money. different perspective to preaching frugality and goal based investing. nothing absolutely unique except for some interesting anecdote. fun leisurely read.
Dawn Lennon
Jan 02, 2014 rated it it was amazing
Shelves: business
So often in sports, commentators will take note how an athlete is playing within him/herself. That's essentially the message I read in The Behavior Gap about dealing with (okay, for some even playing with) your money: Make decisions within yourself that fit your goals.

The book is refreshing in its straight-forward, conversational style; enlightening in its behavioral focus grounded in reality; and encouraging because of its "you-can-do-this" approach.

I've seen people get tied up in knots over mo
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Catherine Gillespie
Jun 05, 2015 rated it it was ok
Shelves: finance
The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money is a personal finance book geared toward people with investments. At the moment we aren’t very heavily investing and we aren't skittish about investing in general, so I found myself saying “yeah, yeah, OK” a lot as I read. However, if you are nervous about the stock market, the book contains a lot of solid advice.

One helpful section offers advice on how to talk about money. Richards points out that often when we think we’re havin
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Casey Wheeler
Jan 03, 2014 rated it really liked it
As a matter of disclosure I received this book as part of the 12 Books group with the expectation that I would participate in the discussion on Goodreads and post a review on that site, Amazon and my blog.

I found author Carl Richards book to be an easy to read and insightful. The chapters are concise and do not drift in to overkill on any of the subjects he discusses. The premise for the book is about being smarter with your money, but I found that it also translates into making useful life deci
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Jp Young
Sep 04, 2018 rated it really liked it  ·  review of another edition
Anecdotally (and to some degree, analytically) introduces the concept of a "behavior gap," which befalls all of us - frequently in our investments, we act on emotion rather than rationality, costing us incalculable amounts of money, time, anxiety, and freedom in the long run. Interesting graphics combined with a bit of wit and humor makes it extremely approachable, even for those without finance backgrounds.
Abeer Alamri
الكتاب باختصار ذكر هالنقاط:
-لا تستثمر فلوسك في الاسواق الاستثماريه
- لا تشتري وتبيع لما الناس يبدون يشترون شي ويبيعونه، استثمر فلوسك بشي يناسبك انت مو الناس
- المستشارين الماليين لا تثق فيهم
- الادخار البسيط المضمون افضل من الاستثمار ، كل ماكان العائد اكبر كل ماكانت الخطوره اكبر

عيوب الكتاب:
-التكرار الممل جدا جدا خصوصا من الفصول الاول للخامس
- اتوقع لو وضع هالكلام بمقال افضل من لو وضعه بكتاب لان اغلبه حشو وتكرار منفر.
Alex Hayes
Feb 13, 2017 rated it did not like it
Good advice but nothing real insightful.
Lucas Westby
Jun 13, 2018 rated it really liked it
Carl is a master at packing a punch with simple concepts. This is a must read for those looking to gain a self awareness of self-destructive tendencies in financial decision making.
Pam Burzynski
Jan 19, 2014 rated it really liked it
Recommended to Pam by: 12 books group
Shelves: finance
I got a kick out of this book because Carl has it down pretty good. I believe I have made just about every mistake he spoke of in the Behavior Gap.

Got "Financial foundation" plans from more than one adviser, day traded in 2000+, bought high and sold low regularly, bought gold bouillon, bought a stock at a high and watched it go to zero, and the list goes on not only in financial matters, but life matters as well.

I read lots of finance books, Bogel, Bernstein, Malkiel, Buffet, the Gardners, cover
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Sean Liu
Jan 12, 2016 rated it it was amazing
This book is about money, but it's really about human psychology when we are at our most primal state—that is, when we're thinking about money.

When it comes to money, people are notoriously bad. We do things we KNOW are illogical and silly just because our brains are wired to tell us to do them (i.e. becoming interested in stocks when they become expensive [because they become expensive] and then selling off when they become dirt cheap). The media knows this and everyone and their dog claims to
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Jeannette
Jan 08, 2015 rated it liked it
A quick easy read about reducing your fears about money and trying to make realistic choices about your financial situation. It's a pretty slim book and there's not a lot of meat - just general common sense advice, and a lot of napkin doodles, but it's a good starting place.
Janice
May 25, 2015 rated it it was ok
Skimmed. The research data behind some of the choices and behaviors that we make regarding money was interesting. The general pointers were not really new information.
Julie Bestry
Mar 19, 2017 rated it really liked it
This isn't an exciting book -- and that's the point. Richards' main point to get across to readers is that there's no magic wand, there's no shortcut, there's no one perfect tip from a broker or CNBC or The Economist or your brother-in-law that's going to get you rich. And that's OK.

Instead, this slim volume is designed to tell those who don't, deep-down, already know the foregoing, and to remind the rest of us who do know, and he digs into a layman's (not a therapist's) approach to the psycholo
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Akshat Solanki
Mind

Mind your behavior.

This is what this book wants to tell you, this is what the author wants to tell you.
Carl has written about human behavior when it comes to financial planning, investing, trading, shorting the stocks, going long and how it affects, how it benefits. He has written some useful and important things that we should mind whenever we're trading.
There are many things that you need to forego in the short term to achieve your long-term plan.
Carl, again and again, insists on investing
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Lara
May 27, 2018 rated it really liked it  ·  review of another edition
Shelves: 2018, finances
I listened to the audiobook through my library and found the book interesting. Not having read much of a description, it wasn't quite what I expected, but the author made some good points about people's behavior around their finances. He also makes some really good points about the lack of value of paying close attention to the stock market (for most of us) and how so many act based on emotion and what others are doing rather than using their goals to guide their decisions. While I know that we ...more
Kara
Feb 26, 2018 rated it liked it  ·  review of another edition
Shelves: money, nonfiction
3.5 stars. This short book (>200 pages) is a very fast read, and speeds along even more quickly due to the high number of illustrations/napkin diagrams. Richards focuses mostly on investing as opposed to other aspects of personal finance such as such saving money or paying off debt. I wish he had gone deeper into the research; as it stands now, the book stays pretty surface level and reads like a collection of conversation advice from your neighbor (granted, a neighbor who has spent decades i ...more
Rob Price
Useful for non investors, novices or those who haven't paid much attention to the importance of behaviourial finance. I think about these things a lot but nevertheless it's always good to be reminded of numerous investing pitfalls. Richards places a lot of emphasis on understanding each individuals personal conditions and the investment journey that's relevant for them. It's a critical point that every individual probably needs to grapple with (both advanced, novice and all investors in between) ...more
Greg Weaver
Dec 16, 2017 rated it it was amazing  ·  review of another edition
Oftentimes the simplest advice is the most effective if taken to mind and put into practice. But, of course, it takes coming across the advice in the first place for one to even have the ability to take the first steps in making mental shifts that adhere to that advice.

'The Behavior Gap' is a sage. The simple (yet not necessarily easy) lessons therein will seem elementary to some, yet most - if people are mindfully open to Mr. Richards's words - will notice the door to sound financial behaviors
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Glenn
Jan 10, 2019 rated it it was ok
TLDR - A financial planner trying to explain human behaviour regarding money.

The irony - Carl writes about avoiding advice from unsubstantiated sources e.g. the brother in law who has a hot stock tip, and yet if you want to know about human behaviour, you should really source that information from psychologist rather than certified financial planner. (Alternatively, try reading 'You are not so smart' by David McRaney, who, although not a psychologist, actually compiles and lists a bibliography
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Emily
Jun 20, 2017 rated it liked it  ·  review of another edition
An interesting read. I was looking for a book more geared towards buying and spending habits rather than stock investments. The last few chapters hit on some of this, but it felt like a winding road to get there. I wish he would have given better real life examples -- most seemed only half thought out. This book is memorable though -- his biggest advice is not to trust "experts" completely, as they often have different motivations than you. He is an expert, so by the end, he's telling you not to ...more
Jake Zukowski
Dec 11, 2018 rated it it was amazing  ·  review of another edition
Nice take on the behavior side of money.

Personal finance is more personal than finance. Our relationship with money is a function of our upbringing, hopes, dreams, fears and demons. This book solidly lays out the behaviors preventing you from being financially secure. As a financial coach myself, this is the (unsatisfying) approach I take to helping others with their finances. This book gave me an arsenal of new tools for deeper money conversations.
Arun Thamizhvanan
Jan 11, 2019 rated it really liked it  ·  review of another edition
Shelves: financial
May be one of the best and simple, easy to understand books on financial planning I have read till date. Loved it for the pure loads of common Sense in finance given in an anecdotal and with diagrams on paper napkins.

I would recommend this book to you, if you want to know the broad guidelines of financial planning and know your blindspots.

Easy to read and style of writing is light but on point.

Loved it.
Justin
Jun 11, 2018 rated it it was ok
Not really worth your time. Short book that could have been shorter for an introductory book. 1) invest smart 2) buy low, sell high 3) Better to hold stocks instead of trading 4) don't expect to find the next Apple. 5) We have heuristics, or rules of thumb we follow, usually without thinking about them and without reason.

I was hoping this would go deeper into behavioral finance. There are better books on that topic.
Ashley
Dec 29, 2017 rated it liked it  ·  review of another edition
Shelves: finance, non-fiction
Humorous, with some solid advice for how to start thinking about financing (as opposed to offering a step-by-step guide or follow-along plan). Some might find some of things he says somewhat offensive, but you don't have to like everything he says to get something good out of it. I think it's a good place to start changing your attitude toward your finances; then read some more to get a feel for what might work for you plan-wise.
Dexter Wilson
Understanding yourself as a part of humanity and why we pursue the actions we do on a daily basis is a vital tool to create the life that you want. Life,in its simplest form, is a series of decisions and behaviors all of which you can control. The Behavior Gap gives detailed insight into what helps create these "gaps" between what we actually do and what we should be doing to achieve our goals and objectives. A pretty good read, well put together.
Mink Chuepaiwest
Nov 23, 2018 rated it really liked it  ·  review of another edition
การเปรียบเทียบเปาหมายทางการเงินกับกระบวนการไปใหถึงเปาหมายดวยนิทานเรืองกระตายกับเตาเปนอะไรทีตรงสุดๆ แลว

หลายคนชอบเปนกระตาย หาทางรวยลัด รวยเรว ซึงมักเตมไปดวยความเสียงทีสูงโดยทีตัวเองไมเขาใจวาเปาหมายทีแทจริงของชีวิตตัวเองคืออะไรกันแน
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Christopher
Jun 08, 2018 rated it really liked it  ·  review of another edition
Down to earth sage perspective

Enjoyed the read. The practical common sense point of view is welcomed. Going to recommend this! It’s one of those books where anyone would benefit.
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12 Books - Author...: The Behavior Gap - Official January Discussion 41 49 Jan 29, 2014 01:49PM  
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  • The Investment Answer
  • The One-Page Financial Plan: A Simple Way to Be Smart About Your Money
  • Psychology of Investing
  • Your Money: The Missing Manual
  • The Clash of the Cultures: Investment vs. Speculation
  • The Seven Stages of Money Maturity: Understanding the Spirit and Value of Money in Your Life
  • Debt-Free by 30: Practical Advice for the Young, Broke, and Upwardly Mobile
  • The Myths of Creativity: The Truth about How Innovative Companies and People Generate Great Ideas
  • The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between
  • The Half-life of Facts: Why Everything We Know Has an Expiration Date
  • A Million Bucks by 30: How to Overcome a Crap Job, Stingy Parents, and a Useless Degree to Become a Millionaire Before (or After) Turning Thirty
  • Home Front Girl: A Diary of Love, Literature, and Growing Up in Wartime America
  • Difficult Mothers: Understanding and Overcoming Their Power
  • Unlocking Potential: 7 Coaching Skills That Transform Individuals, Teams, and Organizations
  • Unconventional Success: A Fundamental Approach to Personal Investment
  • The Slow Fix: Solve Problems, Work Smarter and Live Better in a World Addicted to Speed
  • The End of Growth
“But in the end, financial decisions aren’t about getting rich. They’re about getting what you want—getting happy.” 4 likes
“whatever you have to do to gain self-knowledge, do it. Find out who you are and what you want. Then you can stop wasting your life energy and your money on stuff that doesn’t matter to you—and start making financial decisions that will get you to your true goals.” 1 likes
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