BE uses psychological experimentation to develop theories about human decision-making and has identified a range of biases as a result of the way people think and feel.BE is trying to change the way economists think about people’s perceptions of value and expressed preferences. According to BE, people are not always self-interested, benefits maximizing, and costs minimize individuals with stable preferences—our thinking is subject to insufficient knowledge, feedback, and processing capability, which often involves uncertainty and is affected by the context in which we make decisions.

Behavioral Economics (BE)

In an ideal world, our decisions would be the result of a careful weighing of costs and benefits and informed by existing preferences. We would always make optimal decisions. The theory of rational choice assumes that human actors have stable preferences and engage in maximizing behavior.

Rational Choice

Our willingness to take risks is influenced by the way in which choices are framed, i.e. it is context-dependent. Amos Tversky and Daniel Kahneman are perhaps best known for the development of prospect theory and published a number of papers that show that decisions are not always optimal.

Prospect Theory

Bounded rationality is a term associated with Herbert Simon’s work of the 1950s. According to this view, our minds must be understood relative to the environment in which they evolved. There are restrictions to human information processing, due to limits in knowledge and computational capacities.While the idea of human limits to rationality was not a radically new thought in economics, Tversky and Kahneman’s ‘heuristics and biases research program made important methodological contributions. 30 years later, their thinking entered the mainstream.

Bounded Rationality

The economist Richard Thaler coined the concept of mental accounting. According to Thaler:<ul><li>People think of value in relative rather than absolute terms. They derive pleasure not just from an object’s value, but also the quality of the deal.</li><li> People fail to fully consider opportunity costs and are susceptible to the sunk cost fallacy.</li><li>People treat money differently, depending on the money’s origin and intended use, rather than thinking of it in terms of the “bottom line” as in formal accounting.</li><li>People don’t like to spend money. We experience the pain of paying because we are loss averse. </li></ul>

Mental Accounting

Humans’ bounded rationality is particularly well illustrated by the concept of choice overload. This phenomenon occurs as a result of too many choices being available to consumers. Overchoice has been associated with unhappiness, decision fatigue, going with the default option, as well as avoiding making a decision altogether, such as not buying a product. Factors that contribute to perceived choice overload:  the number of options and attributes, time constraints, decision accountability, alignability and complementarity of options, and consumers’ preference uncertainty, etc.

Too Much Information: Choice Overload

Experience, good information, and prompt feedback are key factors that enable people to make good decisions. <ul><li>Climate change, for example, has been cited as a particularly challenging problem in relation to experience and feedback. Climate change is invisible, diffuse, and a long-term process. Pro-environmental behavior by an individual, such as reducing carbon emissions, does not lead to a noticeable change. </li><li>The same is true in the domain of health. Feedback in this area is often poor, and we are more likely to get feedback on previously chosen options than rejected ones.</li></ul>

Limited Information: The Importance of Feedback

Information avoidance in behavioral economics refers to situations in which people choose not to obtain knowledge that is freely available. Active information avoidance includes physical avoidance, inattention, the biased interpretation of information (see also confirmation bias) and even some forms of forgetting. In behavioral finance, for example, research has shown that investors are less likely to check their portfolio online when the stock market is down than when it is up, which has been termed the ostrich effect.

Information Avoidance

Daniel Kahneman uses a dual-system theoretical framework to explain why our judgments and decisions often do not conform to formal notions of rationality. <ul><li>System 1 consists of thinking processes that are intuitive, automatic, experience-based, and relatively unconscious. </li><li>System 2 is more reflective, controlled, deliberative, and analytical. </li></ul>Judgments influenced by System 1 are rooted in impressions arising from mental content that is easily accessible. System 2, on the other hand, monitors or provides a check on mental operations and overt behavior—often unsuccessfully.

Dual-System Theory

Present events are weighted more heavily than future ones; for example, many people prefer to receive £100 now over £110 in a month’s time. Discounting is non-linear, and its rate is not constant over time. People’s preference for receiving £100 a week from now versus £110 a month and one week from now will not be the same as their preference for receiving £100 a year from now versus £110 a year and one month from now. Although the gap is one month in both cases, the value of events that are farther in the future falls more slowly than those closer to the present.

Time Discounting and Present Bias

Time inconsistency also occurs when our present self fails to predict accurately the preferences of our future self, a point illustrated well by diversification bias. When shopping for multiple future consumption episodes, I may choose the variety pack of cereal, only to realize two weeks later that I would have enjoyed my breakfasts more if I had just stuck to my favorite kind. This inability to appreciate fully the effect of emotional and physiological states on decision-making is known as the (hot-cold) empathy gap.

Diversification Bias and the Empathy Gap

When we make plans for the future, we are often too optimistic. For example, we are subject to committing the planning fallacy by underestimating how long it will take us to complete a task and ignoring past experience. Similarly, when we try to predict how we will feel in the future, we may overestimate the intensity of our emotions.

Forecasting and Memory

<ul><li>Trust is one of the explanations for discrepancies between actual behavior and that predicted by a model of self-interested actors, makes social life possible, and permeates economic relationships.</li><li>Dishonesty is the product of situations as well as both internal and external reward mechanisms, which often involves self-deception—the reframing of dishonest acts (e.g. not declaring all of your income to the tax authorities) in a way that makes them appear less dishonest.</li><li>Fairness is related to a human desire for reciprocity, our tendency to return another’s action with another equivalent action. </li></ul>

Social Dimensions

<ul><li>Our preferences are not simply a matter of basic tastes; they are also influenced by norms, as manifested in gender roles, for example.</li><li>Social norms signal appropriate behavior or actions taken by the majority of people (although what is deemed ‘appropriate’ is itself subject to continual change). </li><li>Human susceptibility to feedback about social norms is related to our desire to maintain a positive view of who we are as a person. </li><li>People’s susceptibility to social forces is also evident in herd behavior: when people do what others are doing instead of making independent decisions. </li></ul>

Social Norms

A short primer on core ideas from behavioral economics. By Alain Samson, PhD, editor of the BE Guide and founder of the BE Group.

Understand yourself and those around you.

psychology

Psychology

Discover the world of business and economics.

economics

Economics

leadershipandmanagement

Leadership & Management

artsandculture

Society, Arts & Culture

An Introduction to Behavioral Economics

In 2021, we assumed we’d return to something a little more consistent, with more concrete answers than we had in 2020. We envisioned ourselves back in offices at least a few days a week, returning to meetings (albeit with more hand sanitiser). 
But, for much of the workforce, things haven’t played out that way; if anything, 2021 showed us that what’s going to be ‘normal’ in the world of work is a constantly moving target.

2020, 2021, and Now 2022

It didn’t take long for huge numbers of workers to figure out how much they liked remote work and all the elements that come with it. But in 2020, changes to work set-ups felt reactive to the pandemic, and it was hard for employees to know which shifts would stick.
A year on, it doesn’t matter what was supposed to be temporary. Workers are now living in a world with different workweek structures, asynchronous communication and permanent remote work – and now that they’ve sampled more flexibility, it’s unlikely employers can revoke the changes the pandemic has put in motion.

Work Is Now Flexible

Of course, there is a possibility that some of these new work arrangements won’t stick, particularly if the labour market tightens and employees have less voice than they do now. 
But an overwhelming number of companies have already committed to new work practices to accommodate worker desires – a signal that stuffing the genie back into the bottle is increasingly unlikely.

Back to The Old Ways

The mass worker exodus and labour reshuffle has been most extensively documented in the US, where American workers continue to leave the workforce in record numbers each month. 
But similar trends are staring to emerge in the UK, where workers are increasingly reporting a desire to change jobs, or are taking the plunge. (Data on the phenomenon in other countries varies; for instance, in Australia, workers are swapping jobs more than quitting en masse.)

The Great Resignation

Across the world, the workers resigning, contemplating quitting or hopping into other positions have put pressure on employers to offer better perks to both attract and retain talent. 
And what workers want has changed: they report asking for more personalised benefits, access to mental-health services, childcare assistance, home-work stipends and general flexibility with their work arrangements.

Worker-Centric Work

Many companies have stepped up to meet these desires, and more have announced plans to. 
Over the summer, major companies including LinkedIn and Nike shut down entirely for mental-health days and weeks – an unprecedented move in a productivity-driven, capitalist society.

A Focus On Mental Health

For frontline and service workers, the return-to-work in a still chaotic and uncertain world has not been optional, and many are bearing the brunt of customers acting out. 
Many of these employees are stretched incredibly thin, as businesses are understaffed amid labour shortages in industries like hospitality and transport that haven’t fully recovered due to the pandemic.

The Widening Inequality Gap Among Workers

We’ve become keenly aware that access to efficient and comfortable remote work is not equal for all knowledge workers, as basic utilities like reliable high-speed internet is not a given for some employees, nor is space to work comfortably or quietly. 
Entry-level and younger workers in general are particularly squeezed for space – one of the reasons they’re requesting a return to office, at least a few days a week.

Problems In Work From Home

There are fears that women who are able to get back into the workforce and resume their careers may fall behind male colleagues who consistently work in the office, due to presenteeism and proximity biases – potentially worsening the gender gap.
Surfacing inequalities is the first step to change, but it’s unclear what can and will be addressed, both individually and systemically, especially when conditions are still evolving.

Proximity Bias

Without commutes to take or office doors to walk out of, many workers are finding it harder to draw hard lines between personal and professional lives. They’re reaching for their phones at all hours, answering messages in bed first-thing and sending off emails after their children go to bed.
The pre-pandemic problem of presenteeism trumping productivity has found its way into the digital world. Workdays have lengthened, and disconnection feels impossible, no matter the source.

The Weight Of An Increased Poor Work-Life Balance

Unsurprisingly, burnout and unpaid overtime are rampant, especially among certain groups such as middle-managers and women. Many businesses are running on skeleton crews amid the labour shortage, which has put an immense amount of pressure on those who stayed amid the Great Resignation.
Although some companies are trying to address issues of work-life balance, and encouraging employees to step away from their phones, it’s still culturally difficult for many to avoid overwork. So, if remote work sticks around as it seems it will, there’s no guarantee workers will press the ‘off’ button.

Never Off From Work: The Problem Of Burnout

Employees and employers alike are expected to gather in person again in some form and hit a new stride. Many companies even put money into redesigning their offices, in many cases eliminating banks of desks, and adding more collaborative spaces and isolation booths to cater to worker requests, now that the purpose of the office has changed.
The return-to-office has been patchy; certain businesses have brought workers back part-time, but these policies vary widely among countries, industries and employers, and haven’t been consistent due to the continually fluctuating nature of the pandemic.

A Hybrid Work Environment

Many employees are still left in limbo without having a sense of how a hybrid set-up will – or won’t – work for them. It’s a kind of uncertainty that’s weighed down workers, both emotionally and logistically, for nearly two years. 
Additionally, without hybrid in action, employers lack data they need to understand what’s both successful and unsuccessful about their approaches.

Left In A Limbo

As much as we continue to speculate about what will and won’t work for hybrid, we’re doing exactly that: speculating.
Neither workers nor businesses have the real-life experience we need yet, which means the hybrid set-up we’re touting as the future of the workplace is very much a work-in-progress.

A Work In Progress

The workplace is now… different, to say the least. The biggest lessons we’ve learned about the world of work in 2021 are at once stark and exciting.

remotework

Remote Work

corporateculture

Corporate Culture

The 6 biggest lessons about work from 2021

Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector. Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the probability of a project's success or failure, and possible future economic states.

Risk Analysis

<ul><li>Quantitative Risk Analysis. Under quantitative risk analysis, a risk model is built using simulation or deterministic statistics to assign numerical values to risk. Inputs that are mostly assumptions and random variables are fed into a risk model.</li><li>Qualitative Risk Analysis. Qualitative risk analysis is an analytical method that does not identify and evaluate risks with numerical and quantitative ratings. Qualitative analysis involves a written definition of the uncertainties, an evaluation of the extent of the impact (if the risk ensues), and countermeasure plans in the case of a negative event occurring.</li></ul>

Types of Risk Analysis

Risk is a probabilistic measure and so can never tell you for sure what your precise risk exposure is at a given time, only what the distribution of possible losses are likely to be if and when they occur. There are also no standard methods for calculating and analyzing risk.

Limitations of Risk Analysis

Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector.

problemsolving

Problem Solving

How Risk Analysis Works

An easy way to look at consumerism is that marketers and advertisers have perfected tactics to get us to buy things, even if we don't need them. But American consumerism is also built on societal factors. We try to keep up with the Joneses, whoever they may be. Sociologist Juliet Schor, an author of books on consumerism, wealth, and spending, thinks marketers have less to do with what we want than our neighbours, coworkers, or people we follow on social media.

The root of consumerism

<ul><li>The development of mass production made it possible to produce things cheaply enough so that the majority of the population could afford them.</li><li> In addition, the automobile industry introduced the moving assembly line that created a significant decline in costs. </li><li>Another development was the start of the modern advertising industry and consumer debt.</li></ul> Consumerism declined during the Depression and the war, but in the 1950s, the model picked up again.

Consumerism can be traced back to the 1920s

Scholars answer this question in different ways. Economists assume that goods and services provide well-being and psychologists think it is part of human nature that ties back to evolutionary dynamics. But the contemporary consumer society is more likely the result of the growth of unequal social structures. For a number of people, it's about consuming to their social position. For example, those with a richer reference group tend to save less and spend more, and those with a more modest reference group tend to save more even if their wealth increase.

Why we buy more than we need

Increases in equality can give rise to competitive consumption - the idea that we spend because we compare ourselves with our peers and what they're spending. Our society is structured so that our social esteem or value is connected to our ability to spend. The inability to consume affects the kind of social value we have.

Competitive consumption

<ul><li>In the postwar period, we had residentially-based reference groups. So it was your neighbourhood where the people had similar economic standing. Houses tend to cost roughly the same amount within an area.</li><li>The next big thing that happened is more married women going into the workforce. That changed the reference groups because they go from a flat social structure in the suburbs to a hierarchy in the workplace.</li><li>Then there is the impact of media, especially social media.</li></ul>

How we pick our "reference groups"

While men seem to dominate particularly big purchases, women are more responsible for everyday purchasing such as food and apparel. Looking at data from marketers, you see a disproportionate amount of spending done by women.

Women and consumerism

Black consumers are no different from white consumers. Although they spend on different things, there are not two types of consumers.  The dynamics of black consumers are partly driven by racism. Middle-class and upper-middle-class blacks will have to spend more on wardrobes to avoid being stigmatized in the retail environment.

Black Americans consume similar to white consumers

<ul><li>Down-shifters decided to work less and consume less. They wanted to take control of their time and are willing to make that trade-off.</li><li>The minimalist movement is connected with financial independence, and the FIRE movement - financial independence, retire early - that is becoming mainstream.</li><li>The buy-nothing groups are big now. They have an ethic of anti-consumerism.</li></ul>

Anti-consumerism is growing

A sociologist on why people buy too many things.

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Personal Development

marketingandsales

Marketing & Sales

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Money & Investments

Why do we buy what we buy?

Shopping therapy is a well-known stress buster, and can also be utilized in small doses to ward off immediate anxiety and experience a small dose of serenity.
This includes ordering a new set of headphones just like that or shopping a few dollars extra at the supermarket buying stuff you didn’t know you needed. Behind this innocent purchasing drive lies a bigger monster of mindless consumerism.

Shopping As A Cure

The 1920s witnessed a trend of marketing products like deodorizers and soap by targeting people with desirability anxiety.
People were sold sex-appeal, confidence and magnetism packed as self-care products and positioned as a solution to a problem they were informed they had. This has only increased in the past decade.

The Marketing Of Things We Desire

Buying stuff, big or small, seems like an end goal, a fulfilment of our desires. In reality, any purchase transforms into a never-ending list of problems, as stuff needs to be fixed, returned, consumed, or bought again.
A product bought for leisure and comfort demands more of our time, energy and resources just for maintenance.

The Vicious Circle Of Consumerism

For the past century, our lives are increasingly hostage to companies with big advertising budgets.
We are told what to do, what to buy and what to eat, kept busy in the never-ending activities and pursuits like working, cooking, partying, backpacking and the stuff on our to-do list, inviting more investment both in terms of time and money.
The whole process is taking advantage of our insecurities and vanity, providing us with their own version of ‘freedom’ and ‘choice’.

A Life Created By Marketing Teams

For decades we have been living a lifestyle of buying stuff: goods and services to take care of our real or imagined needs. We cannot get out of this behaviour as it takes years to unlearn these robust habits.
We need to identify the root cause, the source of emptiness, deprivation or sadness that makes us take refuge in mindless consumerism.

The Way Out Of Consumerism

This is the midweek edition of Culture Study — the newsletter from Anne Helen Petersen. Paid Subscribers: If you haven’t activated your invitation to Sidechannel, email me for a new one. New topics this week: #garden-outdoor-fixit and #kin-chosen-family-divorce-community. And, of course, Bennifer 2.0.

timemanagement

Time Management

The Shopping Cure

Properly managing your finances abroad will have a direct and positive impact on your experience.&nbsp;The majority of your funds will most likely go on rent. Nowadays, it isn’t uncommon for people to spend around 40% of their monthly income on rent and that’s why, when looking for a home, you need to have clear figures in mind.

Setting your rental budget

Look at the net monthly income you will have abroad and then calculate how much you will need to spend on: Food, insurance (e.g. Health, Travel), transport, entertainment/ leisure, other ongoing costs you’ll have (phone bills, subscriptions, payments back home, etc.)Whatever’s left is – approximately – what you can allocate for monthly rent. It’s always wise to keep a financial cushion of one or two hundred, either to save for the future or for one of life’s unforeseen events.Once you’ve settled on your absolute rental maximum, you can apply this figure to all filtered accommodation searches.

How much rent can you afford?

<h2>Before arriving, you can expect to pay:</h2><ul><li>Deposit. Typically, this equal to a month’s rent, but this can vary per advertiser and from country to country. Provided you uphold your end of the contract and there is no damage to the property, you should get the deposit back at the end of your contract.</li><li>Administrative fees: Some advertisers may charge an extra one-off fee at the beginning, to cover certain rental activities, such as drafting the contract or paying registration fees.</li></ul>

Renting abroad: Upfront costs

Maybe your utility bills are not included in the monthly rent. In that case, you will need to pay those on top of the monthly rent, and potentially to someone other than the landlord, e.g. an energy company.If a bill is excluded from the monthly rent, then it will usually be calculated based on actual usage rather than a fixed amount.

Renting abroad: The bills

<ul><li>Studio: They tend to be more affordable and more available, though the definition of a studio does vary depending on the location. It usually means living alone.</li><li>House: This is a popular choice for many making the move abroad. A shared house is attractive to second-year, masters and PhD students in particular, because a house offers a bit more independence from campus.</li><li>Apartment: Make sure you clarify how many bedrooms are in the apartment before booking anything, as a ‘one room apartment’ can mean a studio in some countries and a one-bedroom apartment in others.&nbsp;</li></ul>

Choosing your preferred accommodation type

Finding a home overseas needs patience, research and great advice! Our guide walks you through our platform and the process of securing international rentals!

Renting abroad

NFTs seem to have entered the mainstream. But the technology remains confusing and inaccessible to normal Americans.
Millions of dollars are poured into this emerging market for digital goods, which has rapidly increased the careers of some independent NFT creators.

Brands are excited about NFTs (non-fungible tokens)

NFTs have no physical or tangible value. The technology of NFTs codifies and enforces a metric of scarcity on a digital file. 
<ul>
<li>Functional value (What can I use this for?)**:** Most of the discussion around NFTs is about how you will use the NFTs, show people your cryptocurrency wallet, and your taste in art or music.</li>
<li>Hedonic value (How much do I like this thing, in and of itself?)**:** Things that were once treated as interchangeable on the digital space, like a virtual collectable, are existing with the added value of where you got it from.</li>
</ul>

The value of NFTs

Digital scarcity can be seen as a supply and demand phenomenon. The NFT technology gives you the supply, not the demand. 
NFTs impose scarcity on something that doesn't naturally have scarcity. The free aspect of the internet means anything you make has zero reproducing value. The NFT technology can change how artists are thinking about their work and how they get paid. While the file remains free and available, somebody may be willing to pay because of where they got it from.

Understanding digital scarcity

The New York Times and Taco Bell have put NFTs up for sale. An economist explains how NFTs have value.

crypto

Cryptocurrency

NFTs are all the rage right now. But are they actually valuable?

Warren Buffett advises against excessive borrowing, such as credit card debt or unnecessary loans. 
Some experts divide borrowing money into "good debt" and "bad debt."
<ul>
<li>Good debt is investing in your long-term future, such as a mortgage or student loan. Ideally, it should not have a negative impact on your finances.</li>
<li>Bad debt drains your finances with no prospect for future growth.</li>
</ul>

Borrow Wisely

Prioritise your savings, not saving what is left after spending.
When budgeting, consider what is necessary to cover your basic needs, then figure out how much you want to save. The leftover is spending money. If it helps, think of your savings and investments as a monthly expense.

Pay Yourself First

Many people fall into bad money habits and don't realize it until their habits become hard to manage.
If you want to change your habit, start by breaking it down. Understand your cue, reward, and routine, then use it to break the cycle of your habit.

Don't Underestimate Your Money Habits

Trying to patch up financial issues that are causing you to live from paycheck to paycheck can keep the cycle going, such as payday loans, and hardship withdrawals from your retirement account. It may get you out of immediate trouble but will set you up for eventual failure.
<ul>
<li>Instead, consider looking for regular expenses you can trim.</li>
<li>Reevaluate your needs vs. wants.</li>
<li>Downgrade.</li>
<li>Learn some basic skills to deal with emergencies yourself.</li>
</ul>

Break the Paycheck to Paycheck Cycle

"Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.' Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."

Warren Buffet is known for his frugality. Frugality isn't about buying anything at a low price - it is about buying value at a low price.
The key is not just to look at the price, but to keep value in mind, too.

Price and Value are Not the Same Thing

According to Warren Buffet, if you invest in a very low-cost index fund over time, you'll do better than 90% of people who start investing at the same time. To start, Buffet advises to put 10% of the cash in short-term government bonds, and 90% in a very low-cost S&P 500 index fund.
The money you want to invest outside of your retirement accounts:
<ul>
<li>Learn some basic investing terminology.</li>
<li>Open a brokerage account.</li>
<li>Pick an index fund.</li>
<li>Buy the fund through your brokerage account.</li>
</ul>

Investing is Easier Than You Think

Warren Buffet's index fund investing strategy is to "set it and forget it" and not to get caught up in daily valuations. 
Don't think about owning stock if you aren't willing to hold it for then years. Buffet suggests looking at the big picture when you pick your investments.

Invest Long-Term

"Some material things make my life more enjoyable; many, however, would not. I like having an expensive private plane, but owning a half-dozen homes would be a burden. Too often, a vast collection of possessions ends up possessing its owner. The asset I most value, aside from health, is interesting, diverse, and long-standing friends."

Warren Buffett’s Best Money Advice

Contagion, in financial terms, refers to the diffusion of economic booms, and can occur both domestically and globally. It is basically a spread of an economic crisis from one region to another, and spreads on an international level due to the global market interdependence.
The term contagion was coined during the 1997 Asian financial crisis, but it was occurring namelessly even during the Great Depression in the 1930s.

Contagion In Economics

Developing countries and emerging markets are often more susceptible to be affected by a contagion, whereas large, established markets can weather them to a greater degree.
Periodic, global financial crises has been a staple of the economy for every decade since 1825, in one form or another.

Developing Vs Established Markets

Contagion Definition

<ul><li>Create a full inventory of expenses in front of you: Categorize them into fixed and variable; urgent and non-urgent; necessities and luxury; avoidable and unavoidable.</li><li>You can create a hierarchy of needs and decide which one’s to address first. It’s all about prioritizing. </li><li>Accept that you have limited resources and unlimited wants. But you have to manage your resources. The sooner you accept this fact, the better you can control your impulses towards avoidable expenditures.</li></ul>

Try making a budget

...is the process which provides you a framework for achieving your life goals in a systematic and planned way by avoiding shocks and surprises.

Financial planning

It’s a statement wherein you can jot down your assets and liabilities.<ul><li>Pull together your bank statements and other proofs of the liabilities</li><li>List down your assets like the bank balance, all investments, home value, and value of other assets.</li><li>Take a sum of all the assets to arrive at the total value of your assets.</li><li>List down your liabilities the (car loan, home loan, credit card balances etc.)</li><li>The sum of all the liabilities will show the value of the money you owe.</li><li>When you subtract the value of liabilities from assets, you get your Net Worth. </li></ul>

Maintain a personal balance sheet

What you don’t know is that the earlier you start, the richer you retire. It happens due to the “magic of compounding”.<div>While planning for retirement, you need to clarify a few points like deciding an age at which you want to retire. Along with that estimate how much money you will need every month to meet your post-retirement expenses.</div>

Planning for Retirement

In case you have a lot of debt to shoulder, start paying off the most expensive one. The credit card has been regarded as the most expensive form of debt. As soon as your salary gets credited each month, pay off your credit card balances in full. Don’t fall for the lure of paying off the minimum balance.

Manage your Debt wisely

Financial planning is the process which provides you a framework for achieving your life goals in a systematic and planned way by avoiding shocks and surprises. Read on to find out the top 10 rules that help to plan your finances better.

An Introduction to Behavioral Economics

The 6 biggest lessons about work from 2021

How Risk Analysis Works

Why do we buy what we buy?

The Shopping Cure

Joanna