Most of us are familiar with the basic formula for financial success. Spend less than you make and invest the difference. On paper it sounds easy, but millions of people have trouble sticking to their budgets every month. It’s not a matter of a lack of math skills or an inability to use spreadsheets. It’s how we are …
You have likely observed individuals entering a store to purchase milk and subsequently departing with a brand-new television. You may have even held on to a stock whose value was falling because you would rather not admit that you had made a mistake. These scenarios would not be possible if traditional economic theory were true. We are …
The traditional economics is based on the simple and comforting assumption that humans are rational agents. In this world of theory, people make decisions to maximize their wealth and well-being. They plan for retirement, sell stocks when fundamentals change, and don’t let emotions dictate their spending. You know that this assumption is wrong if you’ve ever …
Carrying a massive debt is like carrying a backpack full of rocks, but you don’t see it. You know it’s heavy, but life goes on, and that’s all you can do. Managing personal debt without losing control of your money doesn’t require enormous sacrifices or becoming a financial expert. The key is finding balance, staying …