Did you realize that we are hardwired to make irrational financial choices?The incentives to spend now vs. save are difficult to overcome on our own. Listen this week as Chad and Mike discuss the impact of behavioral economics on your personal situation.On this episode, we break down six key behavioral biases we all share in different areas of our financial lives. The good news is that human accountability and automated savings programs can go a long way to fight against these instinctual biases.So join us as we celebrate the recognition of Dr. Richard Thaler winning the Nobel Prize in Economics for his Behavioral Economics research and what it means to your financial situation. CNBC – Richard Thaler Wins Nobel Prize Washington Post – Mental Accounting Save More Tomorrow Program Nudge – 2008 book by Dr. Thaler Misbehaving – 2016 book by Dr. Thaler Episode 40 – Make These Financial Moves in Your 40’s Kitces – How Human Financial Advisors Facilitate Behavior Change Morningstar Whitepaper – 72% of people are moderately or extremely worried about money Related: Don't Let the Fear of Missing out Bleed Into Your Financial Planning 6 Key Behavioral Biases we are prone to experiencing Who Richard Thaler is and why his work matters to you How much money Dr. Thaler’s research has helped save US investors Ways you can fight against your emotional impulses around your finances How Mental Accounting can cost us in the long-run Why Big Decisions can have higher odds of Big Mistakes
