Over the last few weeks, I’ve written about several cognitive biases. Cognitive biases are mental shortcuts we all use, but if we’re not careful, they can lead us astray. This is undoubtedly the case when… Read More
Cognitive Biases Part 2: Anchoring and Recency Bias
In my previous post, I began writing about cognitive biases. There are a number of cognitive biases that come into play in investing. The first one we examined in the post here was confirmation bias…. Read More
Confirmation Bias: A Shortcut in the Wrong Direction
Years ago, one of the first courses I took in college was introduction to cognition, or the science of human thought. A key concept that stuck with me long after the course, was the idea… Read More
Putting Together A Personal Financial Calendar: Month-by-Month Recommendations
If there is one date – one financial deadline – nearly everyone knows, it is April 15th. Through November of last year, the IRS had processed over 150 million returns for 2016, meaning that the… Read More
Enough is Enough: How to Plan for Sustainable Spending
Several years ago, my wife and I sat down to work on a budget. Our goal wasn’t to reduce spending so much as it was to plan our spending. We had recently purchased a house… Read More
Year End Financial Checklist for Better Financial Health
About 10 years ago, I put together a year end checklist. I did so because I wanted to see how much financial progress we had made during the year and because I didn’t want to… Read More
Cognitive Biases: Why Thinking Fast Isn’t Good for Investors
When it comes to examining how our psychology (or cognitive biases) impacts how we approach financial issues, no area has received more attention than investing. That isn’t really surprising, because results from investing lend themselves… Read More
Mental Stumbling Blocks to Watch Out for When Putting a Plan into Action
In last week’s post, I explored some of the challenges in setting financial goals. The goals are the core of a financial plan, and with those in place, a plan can be built and implemented…. Read More
A Guide To Teaching Kids about Money and Values
It took my dad two tries to get through college. The second time he enrolled, I had just been born and my mom was the sole breadwinner with her job as a bank teller. We… Read More
Book Review: The Power of Habit
If you have read much at all about personal finance, you’ve run across a list of good financial habits like pay yourself first or track your spending. Unfortunately, there is almost never any follow-up information on how to make something a habit, and that is where The Power of Habit comes in.