The Psychology of Money - ERIK ALMASI
People often think that money is all about numbers, like budgets, income, investments, and interest rates. If money were just numbers, though, we'd all be rich. The truth is that personal money is more about how you act than how you know. It's not just what you know that makes you successful with money; it's also how you act.
Two persons with the same pay, the same bills, and the same access to information can have very different financial situations. Why? Because of how they act, think, and feel about money. Fear, greed, insecurity, and pride are just a few of the feelings that can affect our financial decisions more than reasoning ever could.
The Unreasonable Nature of Money Choices
Someone might buy a hot stock only because everyone else is talking about it, even if they don't know anything about the firm. Or someone who won't sell a bad investment because they don't want to admit they were incorrect. These are not errors of ignorance. They are decisions based on feelings that look like logical ones.
People often think that money is all about numbers, like budgets, income, investments, and interest rates. If money were just numbers, though, we'd all be rich.