Welcome to the Financial Independence UK podcast! Join your hosts Tom and Alex as they talk about human behaviour and how it impacts your FI journey.
Discussion with Dr Daniel Crosby, author of The Behaviour Investor.
Realising that your behaviour is the best predictor of whether you reach your financial goals. People think that externalities have the most impact, whereas Daniel’s research suggests human choices have a much greater impact on wealth building.
Learn to utilise the emotions along your journey of self discovery so they are recognised rather than a detriment.
Awareness of your emotions is key, allow yourself to feel them, recognise why you feel like that. As attempts to control emotions can lead to worse results. Automation to remove decision making from the journey.
Managing market volatility from an emotional view. Market historians, look at historical data. Understand that severe drops do not frequently occur but be prepared for them. Look at things from a wider perspective to allow a clearer view. This drop will be a small squiggle on a long chart just like the past ones.
Financial plans are powerful, to help you through the fear. A route through the chaos.
It can also help you decide when to make decisions to enable you to make the highest quality, best thought out decision. We have least access to our faculties when we need them most.
“Money can buy you the absence of misery, it cannot buy you happiness.”
“Maximise your own earning power” Earn more per hour of your time, if it is time you sell.
As always, if you have any questions for the team, feel free to email us at email@example.com
Direct download here.
Links featured in the show:
If you purchase Daniels books via these links FI UK will not receive anything. Please consider using Amazon Smile to donate a portion to a charity, perhaps for mosquito nets!
Piano music for intro and outro:
Heroic Reception by Kevin MacLeod
Ecossaise in E-flat (WoO 86) by Kevin MacLeod