- By Carl Richards

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

  • Title: The Behaviour Gap: Simple Ways to Stop Doing Dumb Things with Money
  • Author: Carl Richards
  • ISBN: 9781591844648
  • Page: 333
  • Format: Hardcover
  • The Behaviour Gap Simple Ways to Stop Doing Dumb Things with Money 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

    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 wWhy 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 we should do and what we actually do the behavior gap Using simple drawings to explain the gap, he found that once people understood it, they started doing much better.Richards s way with words and images has attracted a loyal following to his blog posts for The New York Times, appearances on National Public Radio, and his columns and lectures His book will teach you how to rethink all kinds of situations where your perfectly natural instincts for safety or success can cost you money and peace of mind.He ll help you to avoid the tendency to buy high and sell low avoid the pitfalls of generic financial advice invest all of your assets time and energy as well as savings wisely quit spending money and time on things that don t matter identify your real financial goals start meaningful conversations about money simplify your financial life stop losing money It s never too late to make a fresh financial start As Richards writes We ve all made mistakes, but now it s time to give yourself permission to review those mistakes, identify your personal behavior gaps, and make a plan to avoid them in the future The goal isn t to make the perfect decision about money every time, but to do the best we can and move forward Most of the time, that s enough.

    1 thought on “The Behaviour Gap: Simple Ways to Stop Doing Dumb Things with Money

    1. 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 [...]

    2. 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.

    3. 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.

    4. 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 [...]

    5. 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’ [...]

    6. 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 ا [...]

    7. 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 [...]

    8. 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 [...]

    9. 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.

    10. 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.

    11. 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 [...]

    12. 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 [...]

    13. 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) [...]

    14. 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 [...]

    15. 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 [...]

    16. 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.

    17. 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.

    18. Another small book that fit in my purse. I pick up money books because I feel like I “should” but I almost always walk away kind of bored. This is a subject that I’ve just read too much on. We all know this stuff, don’t we?I like his napkin doodles.

    19. I thought it was kind of simplistic. The information is true, as far as it goes. Richards suggests financial health is more about financial behavior than financial knowledge - and I agree with that - but he doesn't really address behavior or knowledge in this book.

    20. Sort of helpful in a "I've been binge-reading finance books, so I kinda know most of this already" way. I like the clean delivery and cutesy diagrams. The information is solid and would be useful to people new to the idea that you have to take responsibility for your money.

    21. I really liked a lot of the ideas and the general strategy offered by Carl Richards. I think this book really outlines a sensible way for most of us to look at our investing.

    22. Лека е за четене. По-интересна стана едва накрая. Едно от най-запомнящите се изречения за мен е "залагайте на бавният, но постепенен капитал".

    23. A decent book on investment psychology. Although the author has repeated some ideas across the book. The writing style was easy and took me a day to complete.

    24. not interesting as I thought it would be, but good for the one that interest of investing but afraid of Loosing,

    25. To make right financial ( and life) decisions you should be calm. And solutions should be simple, but not necessarily easy to achieve

    26. This is a book with a lot of common-sense advice on how to manage the little or lot of money that you have. Put simply: there is no such thing as free lunch, and investing in the stock market is like going to the casino: only a few win and you are probably not one of them, so stop gambling with your food supply and try to do the best with what you have.I also liked the illustrations in a form of a napkin-drawing. Looks like someone in a bar, giving you financial advice over a couple of beers. Ki [...]

    27. Deadlines are a great motivator to finish a book: this is due back at the library tomorrow, and it would be financially responsible of me to avoid library fines.That said, this was actually a pretty quick and engaging read anyways, so all I really needed to do was pick it up. This book won't give hot stock tips, nor will it even go in-depth about asset allocation, fees, etc. It focuses on the "behavioural" side (ie. "the feels") of financial planning. While at first blush that sounds kind of "hi [...]

    28. What is it about? In The Behavior Gap, Carl Richards shares with readers/investors on how to think about investing. This book will show you some of the psychological traps we often encounter in our financial planning and investing, and ways to overcome those traps or a different mindset to think about investing. What do I like/dislike about it. There's nothing that I dislike about the book! It's a solid book packed with very useful and applicable information that will help any investors to be sm [...]

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