Ep #42: Acting On The Wrong Financial Cues
You should beware of taking financial cues from people playing a different game than you are. A lot of harm has been inflicted on financial plans over the years because people tend to take cues from family members, trusted friends, media, neighbors, and more. Although people mean well, I’ll share how this can get us into a lot of trouble if we aren’t careful.
Listen in as I talk about how important it is to recognize the personal bias in the information you receive and ensure that your decisions align with your own personal financial goals and interests. You’ll also hear about a concept from a book that was published last year called The Psychology of Money. The author is Morgan Housel, a terrific thought leader in the world of financial planning and investments, and someone we can all learn from when it comes to finances.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- How to figure out which decisions are good and which are bad.
- The main problem with how we interpret the bias of others.
- How our decisions impact our financial plan.
- Understanding the context of how people engage in financial discussions.
- The importance of recognizing bias and personal experiences that affect your decisions.
- How to identify the game you’re playing and get on track with your goals.
Ideas Worth Sharing:
“People often go to neighbors, relatives, and trusted contacts to help provide insight around financial planning and investments.” – Jonathan Bednar
“If you’re going to someone for specific recommendations, counsel, and guidance, then you might need to consider if that actually fits your investment plan and financial thesis.” – Jonathan Bednar
“A lot of the time, what we don’t realize is that me and you are different. We are playing two different games with different strategies.” – Jonathan Bednar
Resources In Today’s Episode:
- Jonathan Bednar: Email | Twitter | LinkedIn
- The Psychology of Money by Morgan Housel
- You And Me LinkedIn Doodle
- What The Wealth?! by Jonathan Bednar
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