Monday, November 29, 2021

Psychologists and behavioral economists share the key to changing your money habits

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This artical is first shown on marketwatch

Sometimes I wish I could edit myself as easily as a Google Doc. I would trim my own story to be clearer, more coherent, engaging, and focused — and take a big Ctrl + X to my anxieties, self-criticism and paralyzing doubt. 

If only it were that simple. Science has reached a point where it’s much easier to edit a person’s DNA than it is their behavior. Change does not come easy. And nowhere is this more true than our behaviors around money.

It’s important to understand why we make idiotic decisions about money, investing, and life, but that knowledge alone is dissatisfying. What can we actually do about it? That is the topic of the new episode of Best New Ideas in Money. 

Co-host Stephanie Kelton and I explore fascinating new research that makes my dream of self-editing seem slightly less absurd. We talk to Katy Milkman, a professor at Wharton, whose research provides a great new toolkit for changing oneself. 

Some patterns of behavior go deeper and are harder to unravel. For that, we hear from financial therapist Brad Klontz, on how to do the work of rewriting what he calls our “money scripts.”

There are no quick fixes here, but as someone frustrated that after four-plus decades I am still locked in some of the same dumb habits, the advice here is highly practical and encouraging.

To hear more about how to design self nudges to change your approach to money and life, also check out my story on the subject:

Read: How a ‘self-nudge’ could help you make better money and life decisions

What do you think? Stephanie and I want the podcast to be a source of insight and optimism about the ways money can be a force for good in the world. And we’d love to hear from you about how we could make the show better. Email us your feedback, ideas for future episodes, and your own “best new ideas” at [email protected]

In the meantime, happy editing.

This artical is first shown on marketwatchAuthor on date 2021-10-23 18:54:00
MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron’s, it is a subsidiary of Dow Jones & Company, a property of News Corp.

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