Comments on: Money Mistakes To Avoid – Loss Aversion http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/ Money Tips for a Better Life Fri, 10 Feb 2012 18:59:59 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Chris http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-175597 Chris Tue, 25 May 2010 12:48:31 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-175597 I think Independant Thinker missed the point. Loss aversion largely relates to conservative people that aren't prepared to spend/risk a little now to gain alot later. Infact he sounds like he has the classic case of risk aversion (play it safe and he won't get burned). I think Independant Thinker missed the point. Loss aversion largely relates to conservative people that aren’t prepared to spend/risk a little now to gain alot later. Infact he sounds like he has the classic case of risk aversion (play it safe and he won’t get burned).

]]> By: Independent Thinker http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-145840 Independent Thinker Thu, 09 Apr 2009 23:34:00 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-145840 I am very smart when it comes to money. My mortgage is less than my house is worth, I don't tap into my house's equity; I save 40 percent of my monthly take-home pay (I'm fortunate enough to make a good salary); drive cars until they die and when they do buy used ones for cash; own only two credit cards and never carry a balance. I also pay for groceries, gas, dry cleaning, and other routine expenses with cash. But, no one can convince me that putting my before-tax dollars into the stock market is a good idea. I know that sounds reactionary and "backward" but when all of my colleagues were groaning in October 2008 about the loss of their hard-earned principle, I was actually counting a modest increase in my "investment portfolio" which will earn me a very modest 5% over the next 30 years until retirement. That and the thousands of dollars I save every year from my paychecks will (with due dilligence) be enough. Perhaps more of us should focus on simply holding onto our pay rather than spending so much of it on things we don't really need like another suit, coat, pair of shoes, or vacation to Disney World. I am very smart when it comes to money. My mortgage is less than my house is worth, I don’t tap into my house’s equity; I save 40 percent of my monthly take-home pay (I’m fortunate enough to make a good salary); drive cars until they die and when they do buy used ones for cash; own only two credit cards and never carry a balance. I also pay for groceries, gas, dry cleaning, and other routine expenses with cash. But, no one can convince me that putting my before-tax dollars into the stock market is a good idea. I know that sounds reactionary and “backward” but when all of my colleagues were groaning in October 2008 about the loss of their hard-earned principle, I was actually counting a modest increase in my “investment portfolio” which will earn me a very modest 5% over the next 30 years until retirement. That and the thousands of dollars I save every year from my paychecks will (with due dilligence) be enough. Perhaps more of us should focus on simply holding onto our pay rather than spending so much of it on things we don’t really need like another suit, coat, pair of shoes, or vacation to Disney World.

]]> By: Money Mistakes to Avoid - Procrastination » Money Smart Life http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-78843 Money Mistakes to Avoid - Procrastination » Money Smart Life Tue, 08 Apr 2008 11:28:29 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-78843 [...] Loss Aversion [...] [...] Loss Aversion [...]

]]> By: Money Smart Life » Personal Finance Review - Getting Old Edition http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-13399 Money Smart Life » Personal Finance Review - Getting Old Edition Sun, 29 Jul 2007 18:45:44 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-13399 [...] – I wrote a few articles on money mistakes to avoid; MoneyNing gives an example of how low cost index funds can help avoid the mistake of selling low and buying high. [...] [...] – I wrote a few articles on money mistakes to avoid; MoneyNing gives an example of how low cost index funds can help avoid the mistake of selling low and buying high. [...]

]]> By: Ben http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-12737 Ben Fri, 13 Jul 2007 04:11:41 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-12737 Lazy, you're exactly right. Those unknown default rates are what has kept me away from Prosper. I agree Miranda, one thing I have trouble with is car maintenance. I balk whenever the mechanic suggests I do some $150 procedure even though it should help keep the car running and my expenses down in the future. Lazy, you’re exactly right. Those unknown default rates are what has kept me away from Prosper.

I agree Miranda, one thing I have trouble with is car maintenance. I balk whenever the mechanic suggests I do some $150 procedure even though it should help keep the car running and my expenses down in the future.

]]> By: Miranda http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-12711 Miranda Thu, 12 Jul 2007 19:22:05 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-12711 One of the things that I love about my husband is that he has taught me to think in terms of long-ranging decisions. Sometimes what we think costs more now actually costs less in the long run. Sometimes we are so afraid of losing NOW, that we forget that penny pinching can indeed be pound foolish. One of the things that I love about my husband is that he has taught me to think in terms of long-ranging decisions. Sometimes what we think costs more now actually costs less in the long run. Sometimes we are so afraid of losing NOW, that we forget that penny pinching can indeed be pound foolish.

]]> By: Lazy Man and Money http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/comment-page-1/#comment-12672 Lazy Man and Money Thu, 12 Jul 2007 01:34:31 +0000 http://moneysmartlife.com/money-mistakes-to-avoid-loss-aversion/#comment-12672 I think this is a huge reason why many people run away from investing on Prosper.com. They fear that they might lose their money if people don't pay them back. I think this is a huge reason why many people run away from investing on Prosper.com. They fear that they might lose their money if people don’t pay them back.

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