3 Myths Of Human Behavior That Could Be Costing You Money

Human beings act rationally to maximize their wealth…at least according to conventional economic theory and the financial models based on it. If you question that, you may be interested in a growing field of study called “behavioral finance” that integrates psychology into economics and finance to try to explain how and why we often behave predictably irrational when it comes to our money. More importantly, it has many real-world implications that can help save you from one of the biggest threats to your financial future: yourself. Here are a few myths about human behavior that could be costing you money:

1) Spending money on luxuries makes you happier.