Home | Finance | Smart Investing | Dollars & Sense

Dollars & Sense

Font size: Decrease font Enlarge font
image

Why smart people do stupid things with their money

Most people are generally intelligent, reasonable and knowledgeable, but if left to their own devices, they are capable of doing some really dumb things with their money. On occasion, this paradox has left me breathless. Have you ever wondered why it is so hard for people to learn from their own financial mistakes? Turns out that there is a new science that explores these questions and it can help us all discover how to keep emotions out of our financial decision-making. It’s called neuroeconomics.

Neuroeconomics is a hybrid of neuroscience and psychology. Its promise is to help crack the smart yet stupid riddle for the first time. By using the wonders of brain-imaging technology, scientists are able to get down to the biological bedrock of financial decisions. What scientists are discovering is that emotions are located in a more primitive part of the brain than rational thought.

Jason Zweig, expert and author of a new book on neuroeconomics, Your Money and Your Brain, gives us this example. When you unexpectedly lose money on an investment, a part of your brain called the insula becomes intensely active. The insula is one of the main centers in the brain for processing disgust; the neural response of someone who has just lost money is barely distinguishable from the activation in the brain of a person who has just smelled vomit or stepped in dog doo. It's literally a sickening feeling, and it creates an almost irresistible urge to get rid of the thing that made you sick. Being slaves to our emotions can lead us astray financially,

Read more at LifeAfter50.com

Subscribe to comments feed Comments (68 posted):

Louis Vuitton Outlet on 09/10/2012 10:41:20
avatar
It really is good to possess the capacity to examine a great high quality article with practical specifics on topics that plenty are interested on. The stage that the information indicated are all first hand on reside experiences even guide a lot more. Proceed performing what you do as we really like readi?-
Thumbs Up Thumbs Down
0
Louis Vuitton Outlet on 09/10/2012 17:32:25
avatar
Hi! Your publish rocks and can be a great study!
Thumbs Up Thumbs Down
0
Cheap Coach Handbags on 09/13/2012 02:37:46
avatar
Incredibly cool! I assistance your view!
Thumbs Up Thumbs Down
0
Coach Outlet on 09/17/2012 20:34:09
avatar
Intimately, the submit is definitely the very best on this precious topic. I concur with your conclusions and will eagerly look forward in your coming updates!
Thumbs Up Thumbs Down
0
ICOO on 09/18/2012 09:54:15
avatar
nice post, it's very useful for me, thanks for sharing!
Thumbs Up Thumbs Down
0
Oxygen Plants on 09/20/2012 09:02:29
avatar
Oxygen Plant India: We are the best manufacturers and suppliers of Oxygen Plant, Nitrogen Plants, Cryogenic Liquid Oxygen Plants, Acetylene Gas Filling Plant, Oxygen factory Exporters, Cryogenic Oxygen Gas Plants and Air Separation Plants all over the World.
Thumbs Up Thumbs Down
0
Ampe A10 Quad on 09/22/2012 03:36:33
avatar
on the New York Stock Exchang the moment sweetie bracelets are extremely favorite; they can be a example of items of fun jewelry which might be expressed by brands renowned for quality
Thumbs Up Thumbs Down
0
Louis Vuitton Outlet on 09/24/2012 05:02:53
avatar
Your point is valueble for me. Thanks!
Thumbs Up Thumbs Down
0
Coach Bags on 09/26/2012 13:14:46
avatar
Hello there, I should say it is a clever posting. I'll certainly be seeking in on this web site yet again soon.
Thumbs Up Thumbs Down
0
Burberry Outlet Online on 09/30/2012 08:54:31
avatar
Incredibly cool! I assistance your view!
Thumbs Up Thumbs Down
0
Oxygen Plant India on 10/05/2012 08:56:50
avatar
Oxygen Plant- Universal Boschi is offering Oxygen Plants, Nitrogen Plants, Oxygen Gas Plant, Acetylene Plants and Liquid oxygen plants exporters India.
Thumbs Up Thumbs Down
0
Hermes mini Plume on 10/06/2012 02:57:39
avatar
And I thought I was the sensible one. Thanks for steintg me straight.
Thumbs Up Thumbs Down
0
CHI Flat Iron on 10/06/2012 02:57:58
avatar
Good share, beautiful words you topic is very great and useful for me…thanks!
Thumbs Up Thumbs Down
0
coco chanel handbag on 10/06/2012 02:58:19
avatar
Your post is knowledgeable,I really appreciate the way you write . I would like to read more from you.
Thumbs Up Thumbs Down
0
Hermes Evelyn handbag on 10/06/2012 02:58:40
avatar
I like your articles, hoped later on to determine much more of this type of a fantastic write-up
Thumbs Up Thumbs Down
0
SEO Company India on 10/10/2012 07:08:41
avatar
SEO India offers quality SEO Services, SMO, SMM Services, Online Reputation Management, Blog Marketing, E-Mail Marketing, Online Branding and Pay Per Click advertising.
Thumbs Up Thumbs Down
0
Coach Bags on 10/10/2012 10:41:28
avatar
thank you for sharing the info..
Thumbs Up Thumbs Down
0
leather shoes for women on 10/14/2012 04:40:15
avatar
Impressive article!
Thumbs Up Thumbs Down
0
vibrating nipple clamps on 10/18/2012 08:45:35
avatar
i really like you article,thanks for sharing it,by the way ,do you know Sweety16 offers a huge range of sex toys and sexy lingerie at the cheapest price with excellent quality. All orders comes with FREE ship!
Thumbs Up Thumbs Down
0
Air Separation Plants on 10/26/2012 09:09:00
avatar
Very good post, We offers air separation plant, cryogenic air separation plant equipments, liquid air separation plant, air separation unit and industrial air separation plant.
Thumbs Up Thumbs Down
0
elm327 on 10/29/2012 02:26:24
avatar
You can also to look at my home page maybe have what you like. DEMI
Thumbs Up Thumbs Down
0
Oxygen Plants on 11/01/2012 09:02:42
avatar
We manufactures of Oxygen Plant, Nitrogen Plants, Oxygen Gas Plant, Liquid oxygen nitrogen plants, Oxygen Factory, Oxygen Plant Suppliers and Air Separation Plants.
Thumbs Up Thumbs Down
0
Oxygen Gas plant on 11/05/2012 09:58:16
avatar
Very good post ! We Provides Oxygen Nitrogen Gas Plant, Oxygen Nitrogen Plants, Oxygen gas plant, oxygen generator, Air Separation Plant, Liquid Oxygen Plants and Oxygen Factory.
Thumbs Up Thumbs Down
0
moncler outlet on 11/07/2012 06:57:31
avatar
Feathers and the unique moncler outlet design of the snow boots warm thick product definition according to the fashion brand Moncler has changed completely.
http://www.monclerfactoryoutlet.co.uk/
Thumbs Up Thumbs Down
0
oxygen nitrogen gas plant on 11/07/2012 08:36:38
avatar
Thanks for nice information publish with us. We are providing oxygen plants, oxygen gas plant, nitrogen plants, liquid oxygen plant, cryogenic oxygen nitrogen gas plant and oxygen gas generator.
Thumbs Up Thumbs Down
0
micro usb adapter on 11/08/2012 02:24:43
avatar
Air Separation Plant, Liquid Oxygen Plants and Oxygen Factory.
Thumbs Up Thumbs Down
0
Lenovo LePhone K860 on 11/17/2012 09:39:22
avatar
Writing is pretty good, let me learn a lot.I realize there are many places insufficient
Thumbs Up Thumbs Down
0
Contracting in the UK on 11/20/2012 09:24:49
avatar
You made a great point in this post. I just spent some time reading all your posts and I must say you are a genius who always throws out smart opinions. Now you have me as your loyal reader. Keep writing great posts. I am looking forward to them. Thank you.
Thumbs Up Thumbs Down
0
lancel soldes on 11/21/2012 08:51:56
avatar
This is a very intriguing post, I was looking for this knowledge. Just so you know I located your blog page when I was looking around for blogs like mine, so please cginning December 1, theck out my site sometime and leave me a comment to let me know what you think.
Thumbs Up Thumbs Down
0
Oxygen Gas Plants on 11/21/2012 10:50:21
avatar
We offer Oxygen Plants, Oxygen Gas factory, oxygen nitrogen gas filling plant, N2-O2 plant, Air Separation Plants and Acetylene Gas Plant Manufacture India.
Thumbs Up Thumbs Down
0
fake watches for sale on 11/24/2012 12:28:43
avatar
i am afraid of travelling by plane by i might just get an airline travel when i go to europe this month*
http://www.watchessalt.net
Thumbs Up Thumbs Down
0
Uggs Boots Outlet on 11/28/2012 02:28:24
avatar
i am afraid of travelling by plane by i might just get an airline travel when i go to europe this month*
Thumbs Up Thumbs Down
0
true religion jeans outlet on 11/28/2012 03:57:32
avatar
i might just get an airline travel when i go to europe this month*
Thumbs Up Thumbs Down
0
replica watches for sale on 11/29/2012 06:42:33
avatar
Good work! Your post is an excellent example of why I keep comming back to read your excellent quality content that is forever updated. Thank you!I don't know what to say except that I have enjoyed reading. Nice blog.I will keep visiting this blog very often.
http://www.watchessalt.net
Thumbs Up Thumbs Down
0
icoo d70 pro on 12/07/2012 03:18:39
avatar
I like the efforts you have put in this,regards for all the great blog posts.Thank you,bless you for the article,I might come back later to view out your other posts.
Thumbs Up Thumbs Down
0
Contractor Take Home Pay on 12/15/2012 12:44:50
avatar
Flexibility,freedom and financial gains on offer, etc, are some of the additional benefits of making it a winning formula. The more effectively you promote your services, the more popularity would be.
Thumbs Up Thumbs Down
0
coach outlet online on 12/20/2012 04:43:30
avatar
http://www.usacoachfactoryonline.com/ coach outlet online
http://www.gotocoachsoutlets.org/ coach outlet store online
http://www.floodsmart.gov/floodsmart/coachoutletonline.jsp coach outlet online
http://goo.gl/G2cw1 coach purses outlet
http://www.coachcoupon2013.com/ coach outlet online
http://www.cheapcoachbagusas.com/ coach handbags outlet
http://www.coachfactoryoutleth.org/ coach factory outlet online
http://www.louisvuittonpursebag.com/ www.louisvuittonpursebag.com
http://www.louisvuittonhandbagsoutlete.net/ Louis Vuitton Purses
http://www.getscoachfactorysoutlet.com/ Coach Factory Online
Thumbs Up Thumbs Down
0
christian louboutin shoes on 12/20/2012 07:24:45
avatar
Simply want to say your article is as tonishing. The clearness in your post is simply spectacular and i can assume you are an expert on this subject. Well with your permission allow me to grab your rss feed to keep up to date with forthcoming post. Thanks a million and please keep up the gratifying work.
www.fillshoes.net/miumiu.html
Thumbs Up Thumbs Down
0
writing a doctoral thesis on 01/08/2013 13:58:01
avatar
Inspect the chosen writing sample for typos, spelling errors or grammatical mistakes, and make necessary edits if possible. Make sure it's sent in the same form as the cover letter and resume, either by mail or electronically by email. If you sent it by email, make sure it's a separate document from the resume and cover letter. Thanks.
Thumbs Up Thumbs Down
0
literature review writing service on 01/11/2013 12:22:35
avatar
That is why it is better that you should relevant research before writing. You will be able to write better post this way.
Thumbs Up Thumbs Down
0
MTK6589 on 02/02/2013 08:12:11
avatar
a review of its use in surgery and other indications which might be expressed by brands renowned for quality
Thumbs Up Thumbs Down
0
Disguised remuneration on 02/13/2013 06:21:43
avatar
Nice post! It is very generous of you for taking the time to discuss this.Most people are generally intelligent, reasonable and knowledgeable.But When you unexpectedly lose money on an investment, then your brain called the insula becomes intensely active.It's true.So you need to take care before investment.
Thumbs Up Thumbs Down
0
Best Bluetooth Headphones on 02/23/2013 06:19:56
avatar
Great article, I've got a blog too, I've been won-der-ing -- Can there be any-factor you could do this to prevent some-one pla-garis-ing your projects? For those who have lots of disadvantage-tent online as if you do, occa-sioinally the thing is it appear-ing some-where else around the internet-inter-internet. Its so unfair and I am unsure how you can stop it. Any tips?
Thumbs Up Thumbs Down
0
Venture Capital Utah on 03/08/2013 09:40:59
avatar
You made a great point in this post. I just spent some time reading all your posts and I must say you are a genius who always throws out smart opinions. Now you have me as your loyal reader. Keep writing great posts. I am looking forward to them. Thank you.
Thumbs Up Thumbs Down
0
Outsourcing Finance & Accounting on 04/30/2013 12:03:06
avatar
Excellent and useful information presented in this blog, I really like this article. I was looking for these things and here I found it. I am very happy to post my comment on your blog. I'm glad that you shared this helpful info with us. Thanks!
Thumbs Up Thumbs Down
0
google search engine optimization on 05/01/2013 12:08:48
avatar
Lower income retirement communities are rare except for government subsidized housing, which neglects a large proportion of older adults who have fewer financial resources. Thank you.
Thumbs Up Thumbs Down
0
rolex explorer ii on 05/09/2013 17:27:31
avatar
but then, do they wanna study their future?
www.roawatches.com
Thumbs Up Thumbs Down
0
idateasia review on 05/21/2013 06:27:56
avatar
this is great, very informative. keep it up.
Thumbs Up Thumbs Down
0
Oxygen Plant on 05/29/2013 10:30:18
avatar
Very nice Post ! We Set up Oxygen plants, Oxygen gas plants for Medical and industrial uses with the latest technology and design.
Thumbs Up Thumbs Down
0
omega seamaster chronograph on 06/11/2013 11:31:36
avatar
<a href="http://www.lreplicawatch.com/">replica watch</a> late and as well lazy t complete it myself correct now, Im afraid). Essentially, it was a somewhat lower high quality, shion line Cartier introduced within the seventies or eighties. Hartmut Richter Pink Floyd. Dark side from the moon. Side 1 green dresses, track 4. Gallet Facebook page <a href="http://www.lreplicawatch.com/breitling.html">quality breitling replicas</a> : I like the skullncrossbones cartouche by the crown.I think that"s a hallmark. But I cant discover a match. "The watch has t become surrounded by a history. <a href="http://www.lreplicawatch.com/cartier.html">cartier knockoff</a> You"ll need over just an excellent style. You"ll need t make an atmosphere about the item. Who"s the business behind it. Why are they utilizing this material. Individuals have t have the ability t determine the watch with themselves. Its according t emotion." Ralph Furter Omega the sign of Excellence because 1848. Jaeger Le Coultre Horlogerie de Luxe depuis 1833 22 occasions Olympic games timekeeper, Nasa watch supplier
Thumbs Up Thumbs Down
0
coach outlet on 06/21/2013 01:36:59
avatar
http://www.coachstoreonline13.com/ coach outlet store online
http://www.coachfactoryoutletusonline.com/ coach factory
http://www.louisvuitton-us.org/ louis vuitton
http://www.burberryok.asia/ バーバリー
http://www.michaelkors-inc.com/ michael kors
http://www.reallouisvuittonbags.net/ louis vuitton bags
http://www.louisvuitton2store.com/ louis vuitton
http://www.louisvuitton-inc.com/ louis vuitton
http://www.coachstoreonline-inc.com/ coach store online
http://www.louis-vuittons.asia/ ルイヴィトン
Thumbs Up Thumbs Down
0
dresses evening cocktail on 06/21/2013 14:07:31
avatar
awesome song david guetta super star rocking music bookmarks this Thanks for post. Its really good for me becuase i m big fan of david guetta.
Thumbs Up Thumbs Down
0
Accounts Outsourcing on 07/12/2013 09:09:17
avatar
It is really great that you share for us such useful stuff. Thanks a lot one more time for the useful information and I will be waiting for more great news from you in the nearest future. Best Regards !
Thumbs Up Thumbs Down
0
retro jordan shoes on 08/23/2013 09:54:06
avatar
Welcome to my website
Thumbs Up Thumbs Down
0
Replica Watches on 08/28/2013 13:43:50
avatar
Applying the Act to the facts of the Bogert case, the New Jersey court would have had clear jurisdiction over the guardianship and the multiple court cases would have been prevented.
Thumbs Up Thumbs Down
0
Cheap Nike Air Max on 09/05/2013 01:12:35
avatar
pump 100 days, success is in sight! Believe in yourself and tempered into a steel!
Thumbs Up Thumbs Down
0
Nike Free Australia on 09/05/2013 01:13:03
avatar
the heart, dream on, my future, I call the shots.
Thumbs Up Thumbs Down
0
Christian Louboutin Sale on 09/05/2013 01:13:28
avatar
race against time to grind Hundred Days Hundred Days sprint success in sight.
Thumbs Up Thumbs Down
0
Business & Investment Opportunities on 10/03/2013 06:22:16
avatar
Many people and reviewers of this blog say about how smart people do stupid things with your oen money.Your post are generally intelligent,knowledgeable and reasonable.I think by reading your post people are capable of doing some really dumb things with your money.
Thumbs Up Thumbs Down
0
Liquidity Providers UK on 11/27/2013 07:27:34
avatar
Wonderful work! It is the style of details that should be discussed all around the net. Thank you very much!
Thumbs Up Thumbs Down
0
Daily News on 01/28/2014 11:45:46
avatar
You made a great point in this financial news because there is a new science that explores these questions. I read your article it can help us all discover how to keep emotions out of our financial decision-making. Thanks for sharing with us.
Thumbs Up Thumbs Down
0
GFIVE X1 on 06/26/2014 09:46:50
avatar
Awesome information. Of course it has given me many things to consider as I update my website too. I appreciate it as that is great for me.
Thumbs Up Thumbs Down
0
sundresses on 06/30/2014 17:54:04
avatar
like. On the web <a href="http://www.dimdresses.net/">bridesmaid dresses 2014</a> , youll discover a broad range of lighting and fixtures to mate. On-line, you ve the upper hand, simply because you are able to see the photos of selected lamps, lighting, fixtures, and so on. Moreover, you ve the option of going for other bathroom accessories to counterpoint your current item. <a href="http://www.dimdresses.net/">junior bridesmaid dresses</a> Lastly, if youre crafty <a href="http://www.dimdresses.net/">Cheap Bridesmaid Dresses</a> , you are able to buy supplies and construct your personal bathroom lights, fittings and illumination. <a href="http://www.dimdresses.net/">red bridesmaid dresses</a> Irrespective of what you re questing for to accomplish these days, you ve a excellent handle of choices. Anytime you determine on bathroom accessories nevertheless, like lighting and fixtures, commonly take into account the style of one s bathroom initial hand. For example, you don t wish to set up a fancy stand up light and fixture in a childbathroom. Youd merely put your children by peril. Cree developed a prototype that delivers 1330 lm and consumes 8.7WDate.2011 August 4 Cree has announced an LED retrofit A lamp that meets stringent efficiency objectives, even whereas the business has not instant maneuvers to marketplace the item. The business has amplified a prototype that delivers 1330 lm and consumes 8.7W, with an efficacy of 152 lm W. Cree says that the prototype 8220 exceeds the efficiency goals of the US Department of Power (DOE) L Prize Competition within the 21st Century Lamp category. The DOE has but to altogether define the needs of this third element of the L Prize championship table lamps shades, even though it has stated that 150 lm W efficacy could be a requirement. Non conventional looks The fashionable lamp looks substantially assorted than maximum LED retrofit lamps and decidedly various from a conventional incandescent bulb. In a movie, beneath, Gerry Negley, Cree s CTO and co initiator of the bulb, stated, 8220 I do not know what lighting will appear like within the 21st centenary. I can let you know it ll not be compelled with shapes and technologies of the elapse. It ll not arise favor a conventional light bulb.Indeed we have already placarded numerous SSL lamps namely abandon from accustomed looks. But Cree is catching liberties in suggesting namely the model may meet the undefined 21st Century L Prize absences (besides while it comes to efficacy) cordless table lamps, and likewise the uncommon fashion of the lamp might be an problem. The model appears to be cylindrical when it comes to the lighting world or diffuser, for shown within the photo. Along with a cylindrical heat sink, that is bigger than the optical unit, types the pedestal of the lamp. Such a manner wouldn t offer an omnidirectional delivery of light. Nobody knows for decisive what absences the DOE ambition define for the third L Prize category. But we do kas long aswithin the 60W category, an omnidirectional distribution is really a necessity. Cree will not reveal anybody of the style particulars utilized within the prototype individually from mentioning it makes use of Cree TrueWhite technologies. TrueWhite is Cree s method to mingling ruddy LEDs with phosphor converted yellow LEDs to deliver warmer color temperatures with higher efficacy than is possible utilizing
Thumbs Up Thumbs Down
0
喬丹球鞋 on 09/12/2014 07:48:36
avatar
http://www.101jordan.com/
Thumbs Up Thumbs Down
0
http://www.longchamppascherf.fr on 09/22/2014 09:24:39
avatar
I like it a respectable measure since it has a personality blowing approach of social events.
Thumbs Up Thumbs Down
0
nike blazer pas cher on 09/26/2014 10:05:51
avatar
I have read many posts of your site. It is another good one.
Thumbs Up Thumbs Down
0
octave on 10/08/2014 05:32:36
avatar
I have joined your feed and must admit ‘tis genuinely a good resource. Thanks for putting this together.

www.n8fan.net
Thumbs Up Thumbs Down
0
http://www.goheritageindiajourneys.fr on 10/09/2014 08:00:38
avatar
I have read many posts of your site. It is another good one.
Thumbs Up Thumbs Down
0

Post your comment comment

Please enter the code you see in the image:

  • email Email to a friend
  • print Print version
  • Plain text Plain text
Tags
No tags for this article
Rate this article
0
Powered by Vivvo CMS v4.1.0