Personal Finance Round-Up: Understand Your Financial Decision-Making Process

financesIf you regularly read articles about investing and have a strong understanding of how the stock market works, then you likely feel that you can make sophisticated, proper choices when it comes to your portfolio. However, what you may not know is that you need more than just “number” knowledge to make these types of decisions.

A recent U.S. News article, How the Ellsberg Paradox Impacts Your Investing Strategy, highlights how the human brain tends to avoid what is ambiguous – this is the Ellsberg Paradox. Author Jason Hull explains how this psychological effect can be work against you when it comes to making investment decisions, as most people tend to stick with what is comfortable and become severely risk-averse over time. In addition to the other tips he outlines, Hull stresses that you should explore all options before making financial decisions, and to keep your end goals in mind to assist your decision-making process.

Here are some other articles that may help you to make better decisions with your money:

7 Items That Are (Often) Cheaper to Buy Online Than In-Store [Three Thrifty Guys]
Though you may make most purchases at a physical store, have you ever considered that the items you buy on a regular basis might be cheaper online? The people over at Three Thrifty Guys decided to delve into that discussion.

10 Ways to Save Money on Tech in 2013 [CNN Money]
Do you think of yourself as a tech-savvy saver? If so, you’ll appreciate these tips to save more money on your digital gadgets.

Charge It! Paying Your Taxes []
Should we use our plastic when it comes to paying Uncle Sam at tax time? Is it a mistake, or can it be rewarding? This post explores your options, as well as the benefits and the pitfalls of paying taxes with a credit card.

Cheap Ways to Liven Up Your Space [Northern Cheapskate]
Does your home need a little something extra this time of year? From a fresh coat of paint to floor coverings, this article discusses inexpensive ways to give your place a decorative boost.

5 Top Banking Apps Designed for Productivity [Girls Just Wanna Have Funds]
App developers are actively looking for ways to improve mobile business, and a number of products have flooded the market. This post shares five of the most useful apps to consider when looking to increase productivity levels.

Marriage Advice for a Lasting Marriage: 6 Smart Financial Vows []
As a married couple, you share a home, bed, bathroom, and more. Why wouldn’t you share a bank account? suggests that you do among their financial tips for couples.

  • Jason Hull

    Hey, MC crew! Thanks for including my U.S. News article! Little did I realize that this is the same Ellsberg who released the Pentagon Papers. I wonder if he felt any paradoxes during that time? :-)