Most financial problems stem from poor choices. And we often make poor choices when we act out of greed, fear or denial.
I saw a good article on CNN Money recently. The writer interviewed George Loewenstein, a professor at Carnegie Melton whose field is called “behavioral economics.”
This quote grabbed me: “It’s dangerous to make long-term decisions based on short-term emotions,” Loewestein said. Bingo. He discusses how to recognize when we’re likely to make a bad financial decision based on emotion. This is an important article that could benefit many people.