#413: If an idea dominates the headlines, we notice it.

But maybe we shouldn’t.

Today’s guest, psychologist and behavioral finance expert Dr. Daniel Crosby, says there’s a difference between a prediction that gets repeated, and one that’s likely to unfold.

What’s salient isn’t accurate, he says. And vice versa.

He also talks about how money problems have morphed over time. He chats about how our evolutionary wiring is at odds with our goals. And he even discusses how we’re wired to be ‘lazy’ – and how to work with that tendency instead of fighting an uphill battle against it.

Dr. Crosby researches the intersection of mind and markets. His latest work, The Behavioral Investor, is an in-depth look at how sociology, psychology and neurology impact our investment choices.

Timing of discussion points as of December 2022:

03:10: The overlap between psychology and investing + new ideas

04:41: Counterintuitive behavioral finance discoveries

07:27: Money as a “hygiene factor”

08:39: The “new class” of money problems for the more affluent

13:44: Factors that impact our financial decisions

15:22: The influence of evolutionary wiring

17:02: Cognitive and physical wiring leading to laziness and group think

27:45: The benefit of community for investors

28:52: The four types of behavioral risk: ego, conservatism, attention, and emotion

36:21: The three E’s of behavior change: education, environment, encouragement

42:30: Confusing things that are loud with things that are likely

45:21: The risk of managing emotion

For more information, visit the show notes at https://affordanything.com/episode413

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