The Dumbest Money Mistakes Smart People Make

Why do intelligent, successful people still make terrible financial decisions? Knowing more about money does not make anyone immune to fear, overconfidence, persuasive marketing, or FOMO. In fact, expertise can sometimes make it easier to justify a bad decision. In this episode of Working Wealth, Patrick and Trevor share some of their own financial mistakes and examine the behavioral biases that cause smart people to make poor money decisions. Timestamps: 0:00 Intro + Disclaimer 0:38 Why Smart People Make Dumb Financial Decisions 1:25 Patrick’s $5,000 T-Shirt Mistake 3:36 Another Expensive Financial Lesson 7:27 The Psychology Behind Bad Money Decisions 8:07 Overconfidence: When Success Works Against You 13:58 FOMO and Chasing the Next Big Thing 20:39 Recency Bias and Assuming the Trend Will Continue 24:26 Loss Aversion and Fear-Based Decisions 29:00 Lifestyle Inflation 32:18 Confirmation Bias 34:55 Build Systems Instead of Trusting Emotion 37:15 The Financial Decision You’ve Been Avoiding ================ Discussions in this show are for entertainment and educational purposes only and should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important financial decisions.