Why Smart People Make Big Money Mistakes and How to Correct Them

Protect and grow your finances with help from this definitive and practical guide to behavioral economicsrevised and updated to reflect new economic realities.In their fascinating investigation of the ways we handle money, Gary Belsky and Thomas Gilovich reveal the psychological forcesthe patterns of thinking and decision makingbehind seemingly irrational behavior. They explain why so many otherwise savvy people make foolish financial choices: why investors are too quick to sell winning stocks and too slow to sell losing shares, why home sellers leave money on the table and home buyers dont get the biggest bang for their buck, why borrowers pay too much credit card interest and savers cant sock away as much as theyd like, and why so many of us cant control our spending. Focusing on the decisions we make every day, Belsky and Gilovich provide invaluable guidance for avoiding the financial faux pas that can cost thousands of dollars each year. Filled with fresh insight; practical advice; and lively, illustrative anecdotes, this book gives you the tools you need to harness the powerful science of behavioral economics in any financial environment.