[Podcast] Why Smart People do Stupid Things with Money with Tom Corley | RICH HABITS, POOR HABITS Podcast

[Podcast] Why Smart People do Stupid Things with Money with Tom Corley | RICH HABITS, POOR HABITS Podcast

Or listen and subscribe in your favourite podcast player:

You’re smart. You’ve made a few dollars. You’ve done what the financial books have told you. You’ve listened to the podcasts, you’ve gone to the websites.

So why isn’t it working?

Why aren’t you getting ahead? Rhph 23 Money Habits

Maybe your emotions and expectations are getting in the way of good sense.

Maybe you’re paying attention to the wrong people.

We’ve all made mistakes with money, sometimes unknowingly, sometimes recklessly.

We all have poor habits that hold us back.

That’s what I’m going to talk to Tom Corley about today.

We’ll chat about why smart people do stupid things with their money, and hopefully, by the end of the conversation, you’ll be more aware, and you won’t make those mistakes.

12 Reasons Why People Make Money Mistakes

  1. Ego – Ego-driven money decisions prevent you from managing whatever money you do have in a prudent manner.
  2. Emotion – Spending decisions that are based on spur of the moment emotions.
  3. Bias – Making money decisions that are not fact-based but, instead, ideologically-based.
  4. Ignorance – Not doing your homework. Taking uneducated risks could be Ego-based or Ignorance-based.
  5. Overthinking – Simple solutions are usually the correct solutions. Seeking more complicated solutions leads to chaos.
  6. Fear – Never make money decisions out of fear. An example would be liquidating investments during a downturn in the stock market.
  7. Stress – Studies have shown that stress reduces your IQ by 13%. Never make money decisions when you are under stress.
  8. Poor Decision-Making Habit – Making frequent poor decisions is a habit. There are a number of reasons why you make bad decisions: Ego, Emotions, Bias, Ignorance, Fear, Stress, Tired or Hungry, and Impairment.
  9. Desperate Decisions – These are decisions that you make from a position of weakness. They are typically the result of prior bad decisions and always forced upon you by some third party, such as a lender, government agency, credit card company, employer, spouse, family, or friends.
  10. Impulse – Making spur of the moment purchases. Related to emotion-based spending mistakes but could also be caused by Decision Fatigue.
  11. Externalities – Keep up with the Jones’s spending decisions are an example. Other reasons for making bad money decisions can be due to pressure from a spouse, family, friends, work colleagues, etc.
  12. Impatience – Making poor money decisions, such as liquidating investments during a downturn in the market can be fear-based or driven by a lack of patience. Making any major purchase without wanting to spend the time on doing your homework, is another example.

Links and Resources:

Tom Corley - Rich Habits

Michael Yardney
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Get your own copy of our international bestseller Rich Habits Poor Habits

Some of our favourite quotes from the show:

“The trouble today with social media is you’re seeing people’s highlight reels and it looks like their life’s really good. You don’t know all the hard work that they’ve done to get there.” – Michael Yardney Succesful Habits

“We’re not pointing the finger at people, we’re not saying look how bad you are. We’re saying, if you want to improve your financial position, what you should be doing is having a look at your habits.” –Michael Yardney

“If you recognize some of these habits in yourself, maybe now’s the time to replace them with some good habits.” – Michael Yardney


Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how.


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.

No comments
Copyright © 2024 Michael Yardney’s Property Investment Update Important Information
Content Marketing by GridConcepts