The 10 Commandments To Pay Attention To For Building Wealth With Daniel Crosby, PhD | HMM 119
In this episode we are chatting with NYT Bestselling Author Daniel Crosby, PhD and it is a jam packed episode!
He is so giving in this episode as you will see as he brings a different approach on how we look at our money which I absolutely love.
What you’ll learn about in today’s episode:
- Why debt was a forbidden word in his household growing up
- How willpower is in limited supply (and why eating that chocolate can make you a better investor)
- The difference between a story based investor and a probability investor
- Why he purchased Powerball tickets when he knows better
- Three strong statistics that show why women are better investors
Daniel’s Money Story
Daniel grew up as the son of a financial adviser. Daniel says this is unique since he learned a lot about money and it was a topic regularly discussed in the open between the family. In his home, the word “debt” was considered a four-letter word — they didn’t want to say that word in the house. Daniel grew up learning a lot about investing, compounded interests, taking risks and entrepreneurship. This thinking has profoundly influenced his behavior into his current role today.
Initially, Daniel started college majoring in business—but after a mission trip in southeast Asia, he decided he wanted to do more good for the world and help people. He went into psychology with an eye on being a therapist but the stress eventually got to him, and he found behavioral finance. Behavioral finance is a segment between psychology and investment — why people do the things they do with their money. It takes the sterile nuances of finance and meshes with human behavior and emotion.
The 10 Commandments for Building Wealth
- You are in control—you control what matters most.
- You can’t do this alone—guidance is needed to point you on the right path.
- Trouble is opportunity—willpower is not enough.
- If you’re excited about an investment, it’s probably a bad idea—story-based investors versus probability investors.
- You are not special.
- Life is a benchmark—goals-based investing.
- Forecasting is for weather people.
- Excess is never permanent—if things have been good for a really long time, it might get bad.
- Diversification means saying sorry.
- Risk is not a squiggly line.
Research Showing How Women are Better Investors
- Funds managed by women outperformed men by 4%
- Women retail investors are better in a recession by 1.4% a year
- Single women beat single men by 2.3% a year when it comes to investing
Her Money Matters because..
“Women are better investors than men.”
Links and Resources:
@danielcrosby on Twitter
The Laws of Wealth: Psychology and the Secret to Investing Success**
**Please note the link is an affiliate link so I may receive a small commission if you purchase**
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Abrazos + Much Love,
Today’s episode of the podcast is brought to you by Bari Tessler Linden and The Art of Money. The Art Of Money is open NOW for a limited time, you can get a taste of Bari’s work in her free Money Mochas series over at BariTessler.com
P.S. THANK YOU for listening!
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