Did you know you have an irrational, crazy, and downright
mischievous “money monkey” in your head, wreaking
havoc on your financial dreams? In this blog, I write about
overcoming the mental mistakes that cost you money,
helping you make better financial decisions for a better life.
– Mitch Barr
Achieving financial success requires a well-marked path
Survival is the only road to riches. You should try to maximize return only if losses would not threaten your survival and if you have a compelling future need for the extra gains you might earn. -Peter Bernstein, author of Against The Gods: The Remarkable Story of Risk.
Spoiler alert: probably more than you are
- Pensions are being replaced by 401(k) plans, which place the burden on employees to save and invest for retirement. Most people aren’t saving enough, because they don’t enroll in retirement plans or know how much money they need to retire.
- The “10% rule” is not the magic number, because every person’s situation is unique.
How your implicit bias undermines investing
Through a lifetime of investing, the chances are you are going to make your fair share of mistakes. It happens to even the most successful investors in the world. Ray Dalio, the founder of Bridgewater — currently the largest hedge fund in the world — once predicted an economic depression in the early 80s. He
I usually keep it light here on The Money Monkey, but I wanted to write about a big problem facing Americans today, which is the risk of running out of money due to rising care costs later in life. Long-term care – usually a nursing home – is tremendously expensive and it can be prohibitive for the average American to
Three ways to keep cool during market downturns
What are you afraid of? Take a minute to think about your top three fears. Why are you afraid of those things? Let’s say your number one fear is snakes. Snakes are slimy and ugly, but that’s not why people are afraid of them. Some snakes are venomous and can kill you. The bushmaster is one of
Training your brain to build wealth on autopilot
We all have areas of our lives we want to improve. You may want to lose a little weight, be a better listener, or manage your time more efficiently. We often turn to self-help methods to improve upon these aspects of our life. If you want to lose weight, you might try a diet. To be a better listener
Winter is coming, do you have a financial plan?
Note: There are spoilers from the popular HBO series Game of Thrones in this article. With all the wisdom of Ned Stark, I will say it: Winter is coming! By “winter,” I’m referring to the dirty word that no one wants to talk about. Recession. Like those crazy northerners in Winterfell, we don’t
Questions about tax reform are on everyone’s minds recently, but there are even more important financial questions that you should be addressing.
There’s a mistake many people make when approaching financial advice. They treat financial advisors like doctors, thinking the responsibility of the advisor is to diagnose a problem and then tell them what to do. The relationship with a doctor is exactly like this. You get
Loss aversion and our addiction to short term gratification
The holidays are finally upon us and that can only mean one thing: It’s time to overindulge in all your favorite holiday dishes. Bring on the calorie bomb that has two sticks of butter and a pound of sugar in it! You know it’s horrible for your waistline, but you eat too much of it, anyway. A two-hour nap