Freakonomics Radio cover image

Freakonomics Radio

518. Are Personal Finance Gurus Giving You Bad Advice?

Oct 13, 2022
0
01:01:38
Snipd AI
The podcast discusses the divide between economists and personal finance, the limitations of relying solely on academic papers, the importance of psychology in money decisions, contradictory financial choices, common money mistakes, and the intelligence of personal finance gurus and economists.
Read more

Podcast summary created with Snipd AI

Quick takeaways

  • Economists prioritize smoothing spending over time, while popular personal finance authors emphasize saving a consistent percentage of income.
  • Psychology plays a significant role in our financial decisions, which economists often overlook.

Deep dives

Differences in financial advice

Economists and popular finance authors have significant differences in their recommendations. Economists prioritize smoothing spending over time, while popular authors emphasize saving a consistent percentage of income. Economists prefer adjustable-rate mortgages for their lower real payment burden over time, while popular authors advocate for fixed-rate mortgages for perceived safety. Both groups agree on the benefits of investing in stocks and using low-cost index funds.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode