A. Not us humans, thatâs for sure.. Any objective view of the state of our economy, politics, technology and even our own day-to-day behavior provides loads of evidence that we are living for the moment. We donât save enough for our retirement, our planet continues to warm and our economy gets more unequal because we … Read more
Alpha is finance-geek speak for an investorâs skill that allows her to outperform an index, like the S&P 500, on a risk adjusted basis. At a recent behavioral finance conference, I sat on a panel that addressed the idea of behavioral alpha. Our moderator asked, âWhat is it and how do we get more of it?â I offered the observation that, … Read more
I never could have imagined how important managing emotion, cognitive biases and behavioral hurdles is to saving enough, spending wisely and managing financial risks. For about a year, I informally coached a woman (we’ll call her “Leigh”) in her late twenties who wanted to eliminate the $5,000 of expensive credit card debt she was rolling over each month, … Read more
Is there any financial decision that we dread more than the annual chore of choosing a health insurance plan? Itâs got everything we hate: choice and information overload, time pressure, ambiguity and confusion, consequences worth thousands, uncomfortable scenarios involving disease and injury, inscrutable jargon coming at a time of the year full of other business, … Read more
How You’ll Know There’s a Problem Sometimes employeesâ financial stresses get so intense, they become unavoidable management issues. They can reduce productivity and engagement and increase turnover, healthcare utilization, absenteeism and worse. Employersâ resources for addressing this kind of issue are typically very limited. Itâs not unheard of for employees to directly ask their managers … Read more
Budgets. Yawn. Why bother? I prefer the uncertainty and anxiety of never knowing that I have enough money to pay rent (said no one ever)? My Paris Budget So, I created my first budget when I went to Paris during my junior year in university. I had limited funds, an exchange rate to manage and I was … Read more
You’re saving too muchâŚsaid no financial expert ever. It’s America Saves Week, which is all about saving more. If you’re in your twenties, youâll be told to save ten to 15 percent of your income. Older? Youâll be advised to save 20-30 percent or more! At the same time, one-third of Americans have saved precisely … Read more
Saving money is hard. It requires self-control in the face of continuous bombardment by scientifically engineered marketing messages, peer-pressure and brains âdesignedâ for immediate gratification. For many of us, it requires investing some quality time to mindfully design a sustainable budget that’s in line with our values. (We think we’ve figured out how to make … Read more
Open enrollment for health insurance began November 16 and the decision isnât any easier than last year. On the contrary, not only are premiums higher and benefits lower, there’s greater uncertainty about the future of the Obama health care act. On a cold, cloudy Sunday afternoon, I analyzed my health insurance choices. Our choices and … Read more
Time for a Quick Update Besides blogging and tweeting about decision-making, Decision Fish has been building apps that help people make wise financial decisions. If you ever feel under-prepared, overwhelmed or intimidating by big financial decisions, we’ll be there. We are building trusted, easy to use apps that give people just the education and analysis they need to make … Read more