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Understanding human nature is essential for financial wellbeing from "summary" of The Geometry of Wealth by Brian Portnoy

To achieve financial wellbeing, you must first understand human nature. This might seem like a tall order, given the complexity of human behavior and the unpredictability of financial markets. But the truth is, without a deep understanding of human nature, it's nearly impossible to make sound financial decisions. Human nature is a complex and multifaceted thing. It's influenced by a wide range of factors, including our upbringing, our social environment, and our innate psychological traits. And when it comes to money, human nature can be particularly tricky to navigate. We all have our own unique relationship with money, shaped by our past experiences and our deeply held beliefs. But despite this complexity, there are certain universal truths about human nature that can help us make better financial decisions. For example, we know that humans have a tendency to be overconfident in their own abilities. This overconfidence can lead us to take unnecessary risks with our money, or to ignore warning signs that we should be paying attention to. We also know that humans have a strong aversion to loss. This aversion can cause us to hold onto losing investments for too long, hoping that they will turn around. And it can also cause us to make irrational decisions in an attempt to avoid losses, even when those decisions are not in our best interest. By understanding these and other aspects of human nature, we can start to see how they can influence our financial decisions. And armed with this knowledge, we can begin to make more rational and informed choices about our money. This is not to say that understanding human nature is a silver bullet that will guarantee financial success. But it is an essential first step on the path to financial wellbeing.
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    The Geometry of Wealth

    Brian Portnoy

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