One of the things I enjoy most about my profession is continuing to learn. It's required at the regulatory level, with a certain number of hours of continuing education being mandated by the CFP Board, for example. But the broader reality is that with so much changing all the time continuing my education isn't just required, it's necessary.
One area that is gaining more prominence in continuing education coursework is behavioral finance. I've written previously about this field and its importance in understanding the how's and why's of one's relationship with money.
These topics are important because if we can understand our internal thought processes and biases regarding money, we can hopefully make better financial decisions.
Last week I attended a two-day conference in San Francisco put on by the NorCal chapter of the Financial Planning Association. There were several behavioral finance-related options, a change from recent years where there may have only been one.
One of the sessions I attended was The Art of Saving Money and it examined, among other things, the neuropsychology of saving. The content was interesting, so I thought I'd share some of the concepts with you, along with some added commentary.
The art of saving money, it turns out, has more to do with how we manage our impulses and internal biases then it does with how much money we make. We all know people who make a lot but seem to spend it all, right? Savers tend to have these common traits: