Budget Busters 3

jacobted Behavioral Finance, blog, Budgeting Leave a Comment

“Those who do not learn history are doomed to repeat it.” Winston Churchill Previously, we saw how both Mitchell and Martha progressed from denial to action. They are now faced with the task of developing a plan to achieve their goals. Mitchell is ready to get down to business. “I need to live on 1,200 calories per day. What is a calorie? How many calories do I currently consume? What else should I pay attention to?” Martha is ready to get down to business. “I make $10,000 per month. I want to save $2,000 per month. That leaves me $8,000. I need $5,000 …

Budget Busters 2

jacobted Behavioral Finance, blog, Budgeting Leave a Comment

“If you don’t know where you are going, any road will get you there.” Lewis Carroll In my previous post, I demonstrated how difficult it is to acknowledge the need for discipline. Let’s see what happens when Mitchell and Martha are ready to act. Mitchell is stoked. “I am going on a diet. Not only am I going on a diet, I’m going to hit the gym. I will start tomorrow. In a month, I’ll be a new man.” Martha is stoked. “I am going on a budget. Not only am I going on a budget, I’m going to save …

Budget Busters 1

jacobted Behavioral Finance, blog, Budgeting Leave a Comment

“What a fool believes, he sees.” Doobie Brothers Many of us have no idea how to go about creating and living within a budget. Yet many of us have been on a diet. Why does budgeting scare so many of us? Money influences our behaviors in ways we are not aware of. In a series of posts, I will demonstrate how many of the skills required to create a diet are the same as those required to build a budget. Skills that can be learned. Meet Mitchell. Mitchell just returned from his annual physical. Seems Mitchell put on some additional …