If you love to learn about behavioral finance and how it can make you a better investor, then you will enjoy my recent conversation with Daniel Crosby. We delve into his early years and learn that Daniel grew up in a financially knowledgable family where his father referred to “debt” as that “d-word.” Daniel sees the world of finance through multiple lenses, given his background as a psychologist, financial advisor and author. We will go into detail about his latest, The Laws of Wealth: Psychology and the Secret to Investing Success, in which Daniel not only provides excellent advice but does it in an engaging way. I enjoyed it and hope you will too!

Details: 

• 1:09~3:32 – Early money lessons
• 3:32~7:32 – Daniel’s background
• 7:32~8:41 – Transitioning into finance
• 8:41~11:20 – Why write The Laws of Wealth?
• 11:20~14:23 – His ten commandments of finance
• 14:23~16:47 – How Wall Street can flip reality
• 16:47~19:27 – CGM Focus study (an investing faux pas on my part:)
• 19:27~24:32 – How trouble can really mean opportunity
• 24:32~27:14 – Importance of diversification
• 27:14~27:32 – A word from our sponsor, Next Gen Personal Finance
• 27:32~36:40 – His four rules
• 36:40~40:20 – Where a behavioral coach fits in
• 40:20~42:31 – Importance of automating decisions
• 42:31~47:47 – If he had an hour to teach investing…
• 47:47~48:50 – Conclusion

Resource:

• Book: The Laws of Wealth: Psychology and the secret to investing success

• “Compound interest is where I would start [teaching young people about investing}. Most people don’t grasp the miracle of compound interest and the power of time. It requires sacrifice but you can take a little amount of money to make a mountain of money with time.”

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