70: Women, Retirement, and the Lessons of Behavioral Finance

<p class="p1">“The human brain is actually wired to trip us up, to shoot ourselves in the foot when it comes to money and investing. A little bit of self-examination can help pull us out of these knee-jerk reactions.”</p> <p class="p2"> </p> <p class="p1">Prepare for a knowledge voyage as our hosts Stephanie McCullough and Kevin Gaines redefine retirement for women, bringing insights from behavioral finance, a fascinating field that explores how we make decisions around money. By the end of this episode, you'll have a deeper understanding of financial behaviors and how to make smarter choices.</p> <p class="p2"> </p> <p class="p1">Our hosts dissect the concept of the gambler's fallacy to shed light on their own decision-making patterns, with Kevin sharing a personal anecdote to highlight its real-life impact. Following that, prepare for a compelling discussion on mental accounting, a concept that will change how you view your money's value depending on its source. Our hosts explore a study that reveals intriguing patterns in spending "found money" versus hard-earned cash. To wrap up, they look at practical ways to leverage mental accounting in creating a budget and improving your chances of financial success. This episode is a journey toward financial empowerment.</p> <p class="p2"> </p> <p class="p2"> </p> <p class="p2"> </p> <p class="p2"> </p> <p class="p1"><strong>Key Topics:</strong></p> <ul class="ul1"> <li class="li1">Intro to Behavioral Finance (01:58)</li> <li class="li1">Biases (06:21)</li> <li class="li1">Recency Bias (AKA Availability Bias) (14:32)</li> <li class="li1">Mental Accounting (17:30)</li> <li class="li1">Flipping These Findings to Our Advantage (Action Steps) (24:43)</li> </ul> <p class="p2"> </p> <p class="p2"> </p> <p class="p2"> </p> <p class="p2"> </p> <p class="p1"><strong>Resources:</strong></p> <ul class="ul1"> <li class="li3"><a href= "https://www.amazon.com/Predictably-Irrational-Revised-Expanded-Decisions-ebook/dp/B002C949KE/ref=sr_1_1?keywords=predictably+irrational+by+dan+ariely