NGPF Podcast: Tim Talks Behavioral Finance and Investing with Daniel Crosby
If you love to learn about behavioral finance and how it can make you a better investor, then you will enjoy my recent conversation with Daniel Crosby. We delve into his early years and learn that Daniel grew up in a financially knowledgable family where his father referred to “debt” as that “d-word.” Daniel sees the world of finance through multiple lenses, given his background as a psychologist, financial advisor and author. We will go into detail about his latest, The Laws of Wealth: Psychology and the Secret to Investing Success, in which Daniel not only provides excellent advice but does it in an engaging way. I enjoyed it and hope you will too!
- 1:09~3:32 – Early money lessons
- 3:32~7:32 – Daniel’s background
- 7:32~8:41 – Transitioning into finance
- 8:41~11:20 – Why write The Laws of Wealth?
- 11:20~14:23 – His ten commandments of finance
- 14:23~16:47 – How Wall Street can flip reality
- 16:47~19:27 – CGM Focus study (an investing faux pas on my part:)
- 19:27~24:32 – How trouble can really mean opportunity
- 24:32~27:14 – Importance of diversification
- 27:14~27:32 – A word from our sponsor, Next Gen Personal Finance
- 27:32~36:40 – His four rules
- 36:40~40:20 – Where a behavioral coach fits in
- 40:20~42:31 – Importance of automating decisions
- 42:31~47:47 – If he had an hour to teach investing…
- 47:47~48:50 – Conclusion
- “Compound interest is where I would start [teaching young people about investing}. Most people don’t grasp the miracle of compound interest and the power of time. It requires sacrifice but you can take a little amount of money to make a mountain of money with time.”
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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