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In pop psychology and social media, there seems to be more interest in pop personality than in financial behaviors when it comes to talking about the things that will have the greatest impact on how successful we are at accumulating wealth. Who doesn’t love a one-question quiz that asks you about your favorite color and then gives you a report telling you you’re a terrible investor because you like magenta? Tests like the Myers-Briggs …
An obvious mechanism to help an individual spend their cash flow in accordance with their financial goals is to employ a budget. But for many of us, the idea of constricting any behavior, especially how we spend our money, is unpleasant. Even if we label it using the euphemism of a “spending plan.” And, changing money attitudes is challenging even for experts. Volumes of advice and technologies are available to help with the mechanics of …
Suppose you are trying to understand the complex underlying personal characteristics of your client, a potential employee, or even yourself. In that case, it goes without saying that you need a good tool (i.e., a good assessment) to measure these not-so-obvious personal characteristics. This is the heart of psychometrics: the science of measuring individual differences (that is, our unique personal characteristics). Typically, psychometrics involves gathering multiple responses related to a characteristic to ensure you’re …
Have you ever dismissed a concept because it sounds too “soft,” that it won’t help or be applicable to your practice, life, or clients? One of those concepts that has suffered from a branding problem in the financial world is mindfulness. However, with the increased focus on holistic financial planning, it’s gaining some ground a an increased reputation as a way to help achieve financial success. Let’s consider it in light of spending. News-flash: Excessive spending …
We define volatility composure as a combination of past experiences and behavioral patterns that describe how an investor typically reacts to changes in the market value of his or her investments as well as overall changes in the value of the stock market. How will the individual actually behave–as opposed to how they think they will behave–when the stock market goes haywire (as it is doing now for the first time in quite some time)? …