Richard Thaler won the Nobel Prize last year for showing that not only do humans make financial mistakes, they make predictable mistakes. He joked about calling his research ‘Dumb Stuff People Do.’ But today, it’s called ‘Behavior Economics,’ and it has changed public policy across the world.
They’re kind of like an actor’s script in a movie. We just continue to read the lines in our heads or out loud to our family and friends, and believe that they’re true! When in fact, they are often quite distorted, and can limit our success or even hurt us. For most of us, our money scripts are unconscious, but they drive all of our financial behaviors.
Basically, it boils down to this: despite having a good education and a respectable job, you feel like you are a fraud, a fake, an impostor. On the outside, you might look calm, cool and collected, but if others only knew what a hot mess you really were!