In spite of the sound personal finance advice available these days, many people still seem to behave irrationally when it comes to making financial decisions. Why is this so? The new science of behavioral economics may hold the answers.
Why Smart People Make Big Money Mistakes—And How to Correct Them focuses not on the “what” of financial behavior but, rather, the “why.” It reveals fascinating insights such as why investors hold on to weak stocks until they dive or sell great ones just before they peak. And, why shoppers are more likely to travel five blocks to save twenty-five dollars on a lamp than a dining room set.
Since most people have committed some or all of the blunders mentioned in this book, it is an entertaining read and hard to put down. The bonus is that Gary Belsky, award-winning business and financial journalist, and Thomas Gilovich, world-renowned academic, offer dozens of tips to help you correct your actions, possibly saving you from making costly financial mistakes.