We dive into the psychology of money and discuss behavioral biases that explain why we make the financial decisions we do, even when we know better. In breaking down some of these common behavioral finance traps and mental biases, we share actionable tips to help us outsmart our own brains and improve our money habits.
Liz joins this week’s podcast as we talk about:
– The definition of behavioral finance and why the math of money is only half the battle
– How cognitive biases and invisible scripts unconsciously dictate our daily spending habits
– Real-life examples and how to build in a pause before making a purchase
– The heavy toll of decision fatigue and why automating your finances is the ultimate life hack
– Practical strategies to outsmart lifestyle creep when your income increases
– The importance of giving yourself grace when you slip up
– How to align your long-term wealth goals with your everyday actions using mindful spending techniques
Show References:
- Inside Out Money episode #171 – I Spent $9,000 on a Mindset Coach So You Don’t Have To – How to Build an Unbreakable Relationship with Yourself
- Inside Out Money episode #147 – 2025 Expense Review: A Glimpse into the Wallets of Four Households
- Inside Out Money podcast #168 – From $25 Airport Muffins to $12 Underwear – The Weird, Irrational Psychology of How We Spend
- Inside Out Money episode #122 – This is your brain on debt – Let’s stop normalizing debt
- Inside Out Money episode #125 – The psychology of debt – How to stay motivated while paying off debt
- Inside Out Money episode #151 – Listener Q&A with Andrew – Surviving Market Downturns, Pensions, Tax Savings, Timing the Market, Dollar Cost Averaging, Net Worth Calculations, 401k Rollovers, and more!