What are areas where people THINK they’re making money, but actually don’t?
I love discovering delusions about the psychology of money, so here’s a question for you:
What are areas where people THINK they’re making a lot of money, but actually don’t?
- Buying a house (people hate hearing this)
- Day trading and picking individual stocks (see chapter 6 of my personal finance book for an entire expose on how fancy fund managers fail to beat the market…and how you will fail at picking stocks, too)
- Investing in hedge funds (most fail to beat the market)
- Venture capital (only top-tier funds beat the market; the rest underperform it…but everyone thinks they’re top-tier)
What else? Where do people think they’re making a lot of money, but they actually don’t?
Add a comment below and let’s watch the delusions roll in.
Notice how some of the most popular blogs and Instagram accounts are people sharing beautiful travel photos. In fact, when ...Read More