Understanding money blunders
These stories showcase the failure of reason that typically sparks a major miscalculation, and they reveal powerful antidotes that can prevent a blunder before it happens:- Listen to that little voice. Before you cast common sense aside, part of you lodges a protest. It may sound like a feeble squeak, but that's because you're turning a deaf ear to your better self. Before you ignore your instincts, take a day or two (or a week) to weigh what that voice is saying.
- Let your brain be your friend. The science of neuroeconomics shows that our financial decisions are often guided by more-primitive and impulsive centers in the brain. Luckily, we are also equipped with modern, fully functional cortical lobes. When making any financial choice, be sure to engage both sectors of your cerebrum.
- Remember who pays the bills in the end. It's tempting in this fiscally complex world to believe your spouse, best friend, mortgage broker or employer has your best interests at heart when they help you make a decision.
The fact is, no one is going to guard your financial present or future better than you are. As long as you stop blundering around when money is concerned.
