The Behavior Gap
"It's not that we're dumb. We're wired to avoid pain and pursue pleasure and security. It feels right to sell when everyone around us is scared and buy when everyone feels great. It may feel right-but it's not rational."
-From The Behavior Gap
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....more
This is a good book for both the consumer and the financial planner. I think a lot of financial advisors tend to get caught ...more
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 ...more
One helpful section offers advice on how to talk about money. Richards points out that often when we think we’re ...more
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 ...more
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.
This book is about how and why people typically make bad investment decisions. A very interesting read, as it doesn't fit neatly into the behavioural economics or personal finance genres but straddles both. Carl Richards won't tell you what to do with your money (as most books of this ilk would) but rather attempts to change how the reader thinks about money.
All in all, its a good read but not a 'must read'.
1. We Don’t Beat the Market, the Market Beats Us
• Aim for a ...more
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, ...more
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 ...more
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 ...more
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 ...more
'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 ...more
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 ...more
I find the concepts simple, refreshing as reminders and are a great way to actually take that to think about choices and decisions about ...more
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.
I was hoping this would go deeper into behavioral finance. There are better books on that topic.
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.