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What Is Behavioral Economics?

braingirlThere’s nothing like a good buzzword. Here’s one that’s more valuable than you think: behavioral economics. It holds a surprising answer to why, despite all good intentions, careful planning and firm resolve, you can deviate from your financial goals until you’ve lost sight of financial freedom completely. 

Much of traditional economic theory assumes we’re always perfectly rational beings who make money-management decisions based on our own financial best interest. We all know that isn’t true. Behavioral economics is that blend of economics and psychology that examines how we really behave and make decisions around money versus how we’re supposed to—if we were robots, that is. An automaton would always have textbook financial behaviors based on pure logic and reason. We humans, on the other hand, are influenced by emotion, other people, personal biases, changes in risk tolerance and so on. We’re somewhat irrational. 


That's So Money: Accidental Fame Edition

Nicole Ouellette and Alice Kaiserian will be a monthly contributors to the Wealth Gathering blog with a column we like to call ‘That’s So Money.’ Think of this blog as combining personal finance and social media in a fun frenzy of usefulness and entertainment. 

Is Money Talk Taboo iStock 000013278427XSmall copyDo you ever have a month where it seems like suddenly people are talking about you? Last month was like that for Michael and Wealth Gathering. While we are surprised by it, we also really appreciate it!

Michael is not the kind of person to ever toot his own horn so we are going to do it for him: Michael got an investing article published on DimeSpring, and The Wall Street Journal. 


Buying Happiness Roundup: Does Money Buy Happiness?

happyladymoneyYou’ve probably heard it said that money doesn’t buy happiness. Is this true? Actually, there is a connection between money and happiness—but it’s not what you might think. Today’s blog is a roundup summary of my previous blogs on money and happiness. Take a look. Maybe you’ll find ways your income can boost your happiness level.