Tuesday, January 17, 2012

Behavior Gap

Financial planner, Carl Richards shares his own personal financial experiences to help us make more thoughtful and informed financial decisions in our lives. In his newly released book, Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money he uses simple sketches to get his point across. Richards discovered a phenomenon he termed “Behavior Gap” after following his clients portfolios. He noticed that individuals have dramatically lower returns on their investments than the average mutual fund. He recognized a conundrum we seem to have when it comes to weighing our needs against our wants, leading many of us to live beyond our means. Richards recommends not focusing on things we cannot control, and to even take a break from media to focus on the important things in our lives.

More of Carl Richards’ insightful and easy to understand sketches can be found at BehaviorGap.com

No comments:

Post a Comment