It’s not always easy to make sound financial decisions, and the study of economic theory has undergone its share of adaptations over the years to account for this fact. But thanks to the work of great researchers like Richard Thaler, we now have a greater understanding as to why we make the economic decisions we make.
And the reason probably won’t surprise you — people just aren’t rational.
In this episode of unsuitable, Doug Feller, a certified financial planner and principal with Investment Partners, touches on what we can learn from behavioral economics, outlines the three financial mistakes that even the smartest among us make, and what we can do to avoid making those mistakes.
Listen to this episode of unsuitable to learn:
What behavioral economics is
Why you need to gain clarity on the financial outcomes that you want and how to stay accountable to those outcomes
Even if you have great planning or investment strategies, poor behavior will likely lead to sub-par results.