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The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money Hardcover – Jan 3 2012
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"Carl has a wicked way with a Sharpie." — Barry Ritholtz
"Carl Richards is the anti-Jim Cramer. He doesn't pick stocks, and he doesn't shout. In wise, calm style, The Behavior Gap teaches us how to rein in the emotional saboteur within us-the voice that leads us to double-down when the market is peaking and to make a panicky exit when stocks are a bargain. Richards shows us that, when it comes to our financial security, slow and steady wins the race." — Dan Heath, coauthor of Made to Stick and Switch
"Ah, clarity! Carl Richards can see the mistakes that humans-being human- make again and again with money. Then with humor and an I've-been-there nudge he sets them on the right course." — Jean Chatzky, author of Pay It Down
"The Behavior Gap throws light on an important question: How can we think more clearly about money and its role in a happy life? Carl Richards shows how to shape our behavior to invest, save, and spend to foster greater happiness." — Gretchen Rubin, author of The Happiness Project
"Who says common sense is common? Smart, tactical, practical advice for anyone who has done dumb things with their money." — Seth Godin, author of We Are All Weird
"Carl Richards's deceptively simple sketches in The Behavior Gap will make you laugh, change your relationship with money, and leave you the wealthier for it. This one is bound to be a classic!" — William Bernstein, author of A Splendid Exchange and The Investor's
"Carl has a knack for showing-gently and with charts!-that when it comes to money, most of us are idiots. Carl prods us to master money, rather than letting it master us." — Laura Vanderkam, author of All the Money in the World
"A brilliant guide to the ways we often trick ourselves into staying poor. Read this before you make your next financial decision." — Zac Bissonnette, author of Debt-Free U
"If a picture is worth a thousand words, Carl's sketches could change a life! He captures the essence of life and money." — Marty Kurtz, president of the Financial Planning Association
About the Author
Carl Richards is a certified financial planner and founder of Prasada Capital Management, a portfolio design firm. He contributes to the Bucks blog at The New York Times and is a columnist for Morningstar Advisor. Richards appears regularly on National Public Radio's Marketplace Money, and is a frequent keynote speaker at financial planning conferences and visual learning events. You can find more of his work at behaviorgap.com. He lives in Park City, Utah, with his family.
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Top Customer Reviews
Carl brings very simple approach to explain how human behavior works and steps to correct it, in addition he provides excellent drawings that summarizes the message(s). I refer to them before my trade or when I`m starting to go off track.
I think it`s a must read before you start trading / investing on your own or with a qualified investor, Carl gives you a guideline what to look for in an advisor.
After reading his books, since July untill about now (December) I haven`t lost any of my capital and my gains outperform the market and most advisors.
Most Helpful Customer Reviews on Amazon.com (beta)
This is a good book for both the consumer and the financial planner. I think a lot of financial advisors tend to get caught up in the nuances of financial planning such as getting a higher interest rate or saving the maximum amount on taxes, but it is really behavior that challenges most people with their money.
People usually know what to do with their money, but they don't always do it. This book addresses those topics and is an important contribution to both the public and the financial planning community.
In full disclosure, I received an advance copy, but I did not know the author prior to reading the book. I highly recommend it.
When my golf game goes astray, I visit my local pro to seek advice. Guess what? He doesn't suggest new expensive clubs or improved golf balls, no! he checks my fundamentals...stance, grip, muscle tension, etc. All very basic fundamentals! It is no different in managing your money. Just the basics and keep it simple.
Managing your financial affairs is nothing more than using common sense and the avoidance of emotional decisions. After living nearly 75 years, I have to say that I practice most of what Carl Richards has to say. However, many of his suggestions I have had to learn the hard way and sometimes these lessons were very expensive. The 2000 stock bubble was a very expensive lesson for me. On the other hand, the 2011 stock market dip of nearly 19% was very profitable, because of the lesson I learned in 2000.
I recommend this book to anyone who thinks they can do a better job in managing their money. I think it will be especially beneficial for young people just starting to bear the responsibilities of managing their own financial affairs. Perhaps some expensive mistakes can be avoided.
The only negatives I have about the book are that I think it is a bit pricey (I always seek value) considering that it is a compilation of the author's past New York Times articles in the Your Money Section. I also think that some of the napkin sketches don't make any sense relative to the point the author tries to make, however I don't consider this a major flaw. I would consider giving a copy of this book to family members as a Christmas gift if it wasn't so expensive.
Also, while I did not expect to receive actual financial advice (where to put money, how much, etc), I felt that the author could have used more examples of what he typically recommends to his clients in specific areas (not just, "move out of stocks" or "invest in bonds") for those of us who are new to the process of saving.
Overall, a good book for the thought concepts that one can appreciate when it comes to finances.
The book is written breezily, almost humorously, yet clearly. I did find it to be rather repetetive, but perhaps that helps make the advice sink in.
However, mass and individual investor psychology has been a hot research topic in recent years, and deservedly so. I would have preferred to see more discussion of recent learning and a bit more detail.
4.5 stars for inexperienced investors
3 stars for those who are already somewhat familiar with the issues.