Long-time listeners know that for some time I have been fascinated by the study of behavioural finance, that is, the reason we make the decisions we do around money, and the implications of those decisions. There is no question that our responses to external events as we build wealth over time, has a massive effect on the eventual outcome. Today I want to try and cover this massive subject in précis form – let’s see how we get on!

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Behaviour

You’re a human. I’m a human. This will not, I hope, come as a surprise to you. But our very humanity is at some deep level incompatible with the cold reason which is an essential component of building wealth. We know what we should do, but our dratted emotions so often get the better of us. I want to look at some of the key biases and emotional responses we bring to the table and then offer some suggestions as to how to minimise these.

Resources mentioned in this episode

Book: Ego Is The Enemy by Ryan Holiday Also available on Audible (both those are Amazon affiliate links)

Podcast: How to choose a multi-asset fund

Podcast: Beeswax & Ropes with Greg Davies, Part One and Part Two

Podcast: The Financial Wellbeing Podcast

Podcast: Maven Money

Course: Learn How To Invest

And, here's a transcript of today's episode:

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