Carl Richards spoke at a conference I attended this year.  I decided to read his book, “The Behavior Gap – Simple Ways to Stop Doing Dumb Things with Money”.

 The book does not attempt to provide a simple way for people to achieve their financial goals.  It provides observations to show how to avoid doing dumb financial things.  Start by taking “… a deep breath and reflect on past decisions.”  Identify actions you took or did not take that did not turn out as you expected.  Identify how you can make better decisions in the future.

You need to recognize that not every decision will be perfect.  Recognize where you are and where you want to be.  Stay “…in tune with reality, with your goals, and with your values.”  You will need to move forward and recognize what changes are needed to reach your goals.

 Following is a small sampling of key points he makes in the book:

“We can stop chasing fantasies.  We are not going to get what we want by beating the market or picking the perfect investment or designing the perfect bulletproof financial plan.”

 ‘Our assumptions about the future are almost always wrong.”  “…we can take sensible steps to protect ourselves from life’s inevitable surprises.”

 “Your financial decisions should align with what you know about yourself and the world”.

“The process of financial planning is vital” not the financial plan.

“Our objective is “…to do the best we can and move forward. “

 The author does not claim that his ideas are original.  His goals are to clarify or simplify to give the reader the confidence to improve their financial decisions.
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