“The human brain is actually wired to trip us up, to shoot ourselves in the foot when it comes to money and investing. A little bit of self-examination can help pull us out of these knee-jerk reactions.”

 

Prepare for a knowledge voyage as our hosts Stephanie McCullough and Kevin Gaines redefine retirement for women, bringing insights from behavioral finance, a fascinating field that explores how we make decisions around money. By the end of this episode, you'll have a deeper understanding of financial behaviors and how to make smarter choices.

 

Our hosts dissect the concept of the gambler's fallacy to shed light on their own decision-making patterns, with Kevin sharing a personal anecdote to highlight its real-life impact. Following that, prepare for a compelling discussion on mental accounting, a concept that will change how you view your money's value depending on its source. Our hosts explore a study that reveals intriguing patterns in spending "found money" versus hard-earned cash. To wrap up, they look at practical ways to leverage mental accounting in creating a budget and improving your chances of financial success. This episode is a journey toward financial empowerment.

 

 

 

 

Key Topics:

• Intro to Behavioral Finance (01:58)
• Biases (06:21)
• Recency Bias (AKA Availability Bias) (14:32)
• Mental Accounting (17:30)
• Flipping These Findings to Our Advantage (Action Steps) (24:43)

 

 

 

 

Resources:

• Predictably Irrational (book)
• Seinfeld Skit: Even Steven

 

 

 

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You can find the transcript and more information about this episode at www.takebackretirement.com.

 

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Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.