Comments on: Our Irrational Money Minds

By: Jackie

Jackie — Mon, 01 Mar 2010 18:36:25 +0000

Budgeting – Oh, don’t worry about it! But you can pretty much bet that if there’s a mistake out there to be made, I’ve made it…

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Mon, 01 Mar 2010 17:04:06 +0000

That will teach me to make assumptions…open mouth, insert foot. Thanks for the post!

By: Jackie

Jackie — Mon, 01 Mar 2010 11:56:59 +0000

Ken, I think sometimes we don’t realize that we’re making the irrational decisions, although there sure are times when we do and just don’t stop. I do think it’s important to set aside some money as an emergency fund — if all money is tied up in investments it can mean that you have to cash them out at inopportune times.

By: Ken Siew

Ken Siew — Sun, 28 Feb 2010 07:18:46 +0000

This is a great post. We often make irrational decisions when it comes to money, and even if we know we’re doing it we can’t stop. That’s just how our brain works, although reading more articles about this would naturally help you to rethink your financial situations and make more sound decisions.

I had to trained myself for a long time in order to switch the mindset from having $20,000 in the bank and debt to having $0 in both. Right now I’m only holding interest free debt and putting the rest of the money into investing and self improvement.

There’s a great book that talks about this too, “Why Smart People Make Big Money Mistakes”. I highly recommend it if you’re interested in learning how to stop making totally irrational financial decisions! It’s a fun read too.

Thanks.

By: Jackie

Jackie — Sun, 28 Feb 2010 04:17:43 +0000

Well, I sat there with $4000 extra in my bank account instead of paying off my student loan. (And that wasn’t my emergency fund.) So I know me…

I’ve heard other people say that they’ve done similar things as well.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Sat, 27 Feb 2010 20:39:17 +0000

Oh, and I would only need 3 months of expenses built up to be comfortable with putting the rest towards high interest debt. If I had debt higher than 8% (our car is at 4.1% and our home is at 5.375%), I’d lower my cushion standards.