Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics

Journalist Gary Belsky and psychologist Thomas Gilovich explain the patterns of thinking that lead intelligent people to make poor financial decisions. Using research from behavioral economics, they describe biases such as mental accounting, loss aversion, the sunk cost fallacy, anchoring and overconfidence, with examples from investing, spending and saving. The book offers practical advice for recognising these mistakes and making better choices with money.

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Shane Parrish: “Gary Belsky and Thomas Gilovich reveal the psychological forces — the patterns of thinking and decision making — behind seemingly irrational behavior.”