Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics

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Why do so many otherwise rational individuals make irrational decisions when it comes to money? Financial journalist Gary Belsky and Cornell University psychology professor Thomas Gilovich contend the answers can be found--and the deficiencies remedied--with help from a relatively new science called behavioral economics. Still largely unknown outside academic circles, the field can be traced to research on the impact of rewards and punishments on human judgment and decision- making that first were undertaken at Jerusalem's Hebrew University some 30 years ago. In Why Smart People Make Big Money Mistakes , Belsky and Gilovich update this pioneering work and show readers how to understand exactly why they invest, spend, and save as they do. More importantly, using examples that everyone can identify with and language that anyone can understand, the authors offer dozens of workable suggestions that can help readers manage their money better. "We believe that by identifying the psychological causes behind many types of financial decisions," they write, "you can effectively change your behavior in ways that will ultimately put more money in your pocket and help you keep more of what you already have." --Howard Rothman

Book Description

Why do so many otherwise smart people make foolish financial choices? Why do investors sell stocks just before they skyrocket -- and cling to others as they plummer? Why do shoppers overspend when using credit cards rather than cash? What do our habits of tipping or buying lottery tickets indicate about our relationship with money?

In this fascinating investigation of the ways we spend, invest, save, borrow, and waste money, Gary Belsky and Thomas Gilovich reveal the psychological causes -- the patterns of thinking and decision making -- of irrational behavior. Most important, they focus on the decisions we make every day and, using entertaining examples, provide invaluable tips on avoiding the financial faux pas that can cost thousands of dollars each year.

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Why do so many otherwise smart people make foolish financial choices? Why do investors sell stocks just before they sky rocket -- and cling to others as they plummet? Why do shoppers overspend when using credit cards rather than cash? What do our habits of tipping or buying lottery tickets indicate about our relationship with money? In this fascinating investigation of the ways we spend, invest, save, borrow, and waste money, Gary, Belsky and Thomas Gilovich reveal the psychological causes -- the patterns of thinking and decision-making -- that result in irrational behavior. Most importantly they focus on the decisions we make everyday and, using entertaining examples, provide invaluable tips on avoiding the financial faux pas that can cost thousands of dollars each year.

Customer Reviews:

Great Introduction to Behavioral Finance.......2007-07-21

For more than 20 years I have been fascinated why so many people make financial decisions which defy rationality. Unfortunately, I find it extremely difficult to read and comprehend most of the research papers that has been done in the field of behavioral finance. The last 5 years have seen several good books explaining the results of the emerging field of behavioral finance. This book is one of those good books.

As a fan of index funds, I enjoyed reading this book's explanation and recommendation for suggesting index funds.

This book is very readable and is an excellent primer on the major concepts which are emerging from behavioral finance research.

Socrates was right when he uttered his famous quote "Know Thy Self". One of the hardest things to do is to understand why we do what we do sometimes. This book helps explain some of this natural human behavior, and how we can manage it to make more rational financial decisions.

I would suggest companion books to supplement this book including:

Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pro's
How to Use Psychology to Achieve Your Financial Goals
Are You Using the Right Rules to Plan Your Retirement?
The Richest Man in Babylon
Bogle on Mutual Funds: New Perspectives for the Intelligent Investor
The Millionaire Next Door
The Four Pillars of Investing: Lessons for Building a Winning Portfolio
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On With Your Life
The Bogleheads' Guide to Investing

Entertaining and good stuff.......2007-07-03

The book is easy to read and it also covers a lot of interesting topics. Highly recommended.

One of my favorite personal finance books.......2007-05-15

It's been years since I first read this book, but I still reference it often when talking about money decisions. It's readable, fun, and informative. I also enjoy the situational questions that begin each chapter. Even when you can see what point they're getting it, it's easy to see yourself making the same mistake in a moment of decision.

Out of the ivory tower and into your real life.......2007-01-09

this book is an easy well-written guide to understanding the academic field of behavioral economics and to bring it into the real world of our lives. The original research studies are really dry and hard to read even for a psychologist (I am one).....this is reader friendly and practical. Helped me understand some of the errors I made and still fall into....like noticing the stocks I have really done well with and forgetting about the ones that did not do so well so I think I have done really well in the market the past year..but then I look at the cold hard numbers and guess what? I did not do nearly as well I thought. Very helpful to use with patients who are having credit card woes (future dollars are so cheap). Dr. Mary Gresham Atlanta Ga

Are you mentally fit to make money decisions?.......2006-12-21

This book helps to show you some of the common pitfalls that people make when making decisions involving money. While there are topics related to investing, there are also general "money-decision" topics. There were actually some mistakes that I did not even think of but when I read them I realized that many of my friends made these mistakes. For me the biggest lesson that I learned was the part about mental accounting. This is one of those books that you think is all common sense but when you think about it, you realize that you too make these mistakes.

Book Description

Gareth Morgan believes that examining organizations and management should be interesting, creative, practical, challenging, and directly relevant to the needs of all students of organization and management. In an ingenious and utterly delightful selection of organizational "stories," Morgan presents unique insights drawn from actual corporate (as well as nonprofit, public, and institutional) experience. These carefully chosen examples illustrate both organizational success and failures . . . because we can learn from both! These "stories" offer the depth and breadth of perspective we have come to expect from Morgan’s insightful and often witty framework of organizational analysis. And, they are interwoven with excerpts from many of the "classics" in organizational literature. His aptly named "Mindstretchers" entices the reader to expand his or her personal repertoire of approaches to the understanding of and solutions to organizational problems and challenges.

For instructors in the field of organizational studies who wish to have a broad and creative resource for their courses, this book is a resource you will use and reuse for many years to come.

Followed by cases and exercises--again drawn from both private and public sectors--that challenge us to view organizations in new and different ways, Creative Organization Theory will undoubtedly prove to be a truly "mindstretching" book! This exciting and enjoyable volume is one you’ll turn to frequently.

"An inspiration for the creative tutor . . . . and an excellent fund of knowledge and information for the teacher in the disciplines of business, management, and organizational theory. The book contains mindstretching and broadening ways of enhancing the thinking processes of anyone engaged in the study of organizations--a subject which otherwise provokes much yawning and other signs of boredom. The author provides much-needed refreshment and is revolutionary in his approach."

--Simulation/Games for Learning

"A rich complement to primary management texts, especially Morgan’s provocative Images of Organization. Although the book’s focus is private sector, the perspectives of organization are universal and translation to the public sector is smooth. Creative Organization Theory particularly is imaginative in challenging students to abandon set ways of thinking using a rich mix of ''mind stretching'' exercises, diverse articles, and stimulating cases."

--Robert Mier, University of Illinois, Chicago

"This resourcebook contains ideas, stories, cases, exercises, and pieces of information that will help the reader gain a broadbased understanding of the nature and function of modern organizations . . . . Very useful for teaching, as well as being a good read for those with a particular interest in this important subject."

--Long Range Planning

Customer Reviews:

Creative Organization Theory.......2003-07-02

I purchased this book for use as a text in a doctoral class in organization and management. It offers a wide mix of ideas that can be used in your own workplace and compliments Morgan's other works quite well.

Book Description

A sociological study of changing farming methods, Conservation Tillage and Cropping Innovation investigates those techniques that have gradually continued to replace the plow culture. With thorough documentation of the conservation tillage and cropping revolution, this book features chapters on: The Social Construction of Innovative Networks; Planning Conservation Cropping: Implications for Research, Development, and Extension; The New Agriculture of Conservation Cropping: Present and Future.

Book Description

A Clear and Effective Approach to Learning DBT Skills

First developed for treating borderline personality disorder, dialectical behavior therapy (DBT) has proven effective as treatment for a range of other mental health problems, especially for those characterized by overwhelming emotions. Research shows that DBT can improve your ability to handle distress without losing control and acting destructively. In order to make use of these techniques, you need to build skills in four key areas--distress tolerance, mindfulness, emotion regulation, and interpersonal effectiveness.

This book, a collaborative effort from three esteemed authors, offers straightforward, step-by-step exercises for learning these concepts and putting them to work for real and lasting change. Start by working on the introductory exercises and, after making progress, move on to the advanced-skills chapters. Whether you are a professional or a general reader, whether you use this book to support work done in therapy or as the basis for self-help, you'll benefit from this clear and practical guide to better managing your emotions.

The individual struggling with overwhelming emotions and DBT therapists will benefit significantly from this workbook. McKay, Wood and Brantley have expanded and translated DBT Skills, making Linehan's iconic work on emotional skill building even more accessible and easy to apply to everyday life.
--Kate Northcott, MA, MFT, is a DBT therapist in private practice with Mindfulness Therapy Associates and is director of New Perspectives Center for Counseling, a non-profit counseling center, in San Francisco, CA

Customer Reviews:

EASIER TO USE THAN MARSHA LINEHAN'S TRAINING MANUAL.......2007-09-05

This is an easy review of the concepts presented by DBT founder Marsha Linehan. I am reviewing it with my psychologist and he is helping me to understand her phenominal new ways of living and being at peace with the daily distressors in life. Great workbook to have to heal yourself of mental and regular day to day stressors.

Don't Let your emotions run your life work book.......2007-08-30

Not finished reading this workbook yet but it did definitely change my attitude towards emotions. Doing the exercises by mind instead of writing them even with a pencil is less compromising. I think I should get the text book to get in dept into this issue.

DBT.......2007-08-23

This is an easy to understand workbook that is right on target with the issues facing many people who self harm. The book flows well and has handouts that allow clients to explore their underlying thoughts and feelings.

Easy-to-Use Workbook for Dialectical Behavioral Therapy.......2007-08-15

I found this book helpful to use with clients who are in group or individual therapy.

Dialectical Behavioral Therapy Workbook.......2007-08-10

I thought the book was very well presented and had good content that was practical and useful. I am a practicing therapy and have used the methods, suggestions and models with my client with positive results.
I have recommended it to my clients.

Pediatric Disorders of Regulation in Affect and Behavior: A Therapist's Guide to Assessment and Treatment (Practical Resources for the Mental Health Professional) ... for the Mental Health Professional)

Average customer rating:

book good - delivery took too long

Pediatric Disorders of Regulation in Affect and Behavior: A Therapist's Guide to Assessment and Treatment (Practical Resources for the Mental Health Professional) ... for the Mental Health Professional)
Georgia A. DeGangi
Manufacturer: Academic Press
ProductGroup: Book
Binding: Paperback

Clinical Psychology | Psychology & Counseling | Health, Mind & Body | Subjects | Books

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Book Description

Pediatric Disorders of Regulation in Affect and Behavior: A Therapist's Guide to Assessment and Treatment represents state of the art coverage of the latest theory, research and treatment strategies for infants and children with problems of regulation. This comprehensive book, designed for mental health professionals and occupational therapists working with infants and children, provides the most recent advances in addressing disorders of self-regulation. Grounded in research, the development of self-regulation from infancy through early childhood is presented. Screening and assessment procedures are described in detail to help the reader evaluate self-regulation, attention, sensory processing, and parent-child interactions in infants and children. This book is the first of its kind to integrate treatment approaches from the fields of infant/child mental health and sensory integration.
Clinicians learn how to address different types of regulatory problems in infants and children by working through the parent-child relationship. Specific treatment approaches for problems of mood regulation, sensory processing, attention, sleep, feeding, and play and social interactions are described in detail. Detailed case presentations are included in each chapter to demonstrate this innovative and integrated treatment approach. Full of practical advice, this book is a valuable resource for early intervention programs, day cares and preschools, and infant/child mental health programs.

Customer Reviews:

book good - delivery took too long.......2005-07-22

In this case the delivery really took very long and it was not possible to track my order the whole time either. But besides that everything just went fine.

Average customer rating:

On the Self-Regulation of Behavior
Charles S. Carver , and Michael F. Scheier
Manufacturer: Cambridge University Press
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