The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money by Carl Richards
My rating: 5 of 5 stars
Another “small” book that is full of wonderful content. The subtitle says it all. One of the most dumb things we can do with money is to lose it, especially while pursuing its growth. He shares all kinds of common-sense but easily-overlooked and forgotten insights into how our emotions and biases make such losses almost inevitable. Richards is so simple and unassuming that it would be easy to discount the value of what he offers, but that would be foolish – maybe even “dumb.” He notes on page 85, in Chapter 5, “Too Much Information” that “the ability to build and protect wealth is often inversely related to knowing what’s going on in the market. And it’s certainly inversely related to acting on that knowledge.” Later in the same chapter, in a section “Free Your Mind” he says on page 90, “When thoughts about the market arise, let them go. Go for a bike ride.” So what can we do? We can simplify our lives, learn delayed gratification, and most of all focus on what we really value and work toward it, one day at a time, and enjoy the journey. Or you can worry and fuss – it’s your choice. I recommend this highly.
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