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Do You Know Why Most Of Us Aren’t That Good At Managing Money?

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Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

Know Your Money
Thursday – March 5, 2015

Knowing Your Personal Finances
Do You Know Why Most Of Us Aren’t That Good At Managing Money?
By Donell Edwards

Did you know that in some ways we are hardwired not to manage money well?

 
Robert Farrington is the founder and editor of The College Investor, which is a personal finance site dedicated to young adult and college student finances.
Image by © Royalty-Free/Corbis

Image by © Royalty-Free/Corbis

 
In his recent article, 6 Ways Your Brain Sucks at Managing Money, Farrington shares his research on behavioral finance and neuroeconomics.
 
Here are some of his findings:
 
1.    Most of us are not very good at budgeting
 
2.    Too often we allow our friends and associates to influence our financial decisions.
 
3.    Why our brains suck at spending.
 
4.    Investing and availability bias.
 
5.    Our brains and the endowment effect.
 
6.    The theory of Mean Regression.
 
Read the entire article at:
 

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to info@knowyourmoneyglobal.com.

 

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Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial planner. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

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