Why you procrastinate

June 22, 2010
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Psychologists say it’s not a time management problem. So what’s going on? My college memories rapidly faded after graduation, but one of my most vivid, enduring memories is of one of my former roommates, who was a chronic procrastinator. Sure, he waited until the last minute on take-home tests, 10-page papers and studying. But my [...]

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This much money will buy you happiness

June 16, 2010
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My happiness level is 7. Economists have a way of taking the joy out of joy. That’s the first thought that crossed my mind when I read a study by David Blanchflower of Dartmouth and Andrew Oswald of the University of Warwick that talked about “happiness equations” and “happiness-maximizing numbers”. Nothing like an economist to [...]

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Carnival of Personal Finance #261: Pop Art Edition

June 14, 2010
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Welcome participants in the Carnival of Personal Finance! I’m really glad you participated and stopped by. I’d be even more happy if you came by more often! Here are a few reasons why you should:   1. This ain’t your typical personal finance blog. I don’t often tackle the basics of a Roth IRA or [...]

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To invest well, know your limits and admit your mistakes

June 12, 2010
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First, a quick announcement. I’ll be hosting the Carnival of Personal Finance next Monday! Many followers of this blog probably discovered me through the Carnival, and I’m really proud to be giving back a little bit by hosting this week. I have a newfound respect for the people who’ve put it together and will try [...]

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Fundamental indexing: A magic formula?

June 8, 2010
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Passive investing does not preclude value investing. If you’ve read this blog for any period of time, you know that I have some paradoxical views on how we should invest. I think markets are mostly efficient, but that periods of inefficiency (a la the housing and dot-com bubbles) can last for extremely long periods of [...]

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How who you know affects who you are

June 1, 2010
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Your friends can make you fat. And I don’t mean by baking you stuff. A few years ago, scientists released the results of a 32-year obesity study in the New England Journal of Medicine. Pardon the description if you’re already familiar with it. Scientists followed about 12,000 people over a 32-year time period, many of [...]

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Bonds are not as safe as you think

May 25, 2010
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Stocks’ less exciting cousins also happen to be less safe than they used to be. The stock market’s been up and down, sometimes by huge amounts, in the last several months. But one thing’s been consistent: Joe-schmo investors have continued to sink money into bond mutual funds rather than return to stocks. On the week [...]

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New ways to trick yourself into saving for retirement

May 23, 2010
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Hello visitors from the Carnival of Personal Finance at Money Relationship! I’m flattered to have been chosen as an Editor’s Pick. I’d be even more happy if you came by on your own! Here are a few reasons why you should:   1. This ain’t your typical personal finance blog. I don’t often tackle the [...]

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The Flash Crash: Why we panic and how to avoid it

May 19, 2010
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Sorry for the long absence. I was out of town on vacation. Back to the grind now though. Panic in numbers. “Safety in numbers” is a maxim rooted in our evolution. You see it in flocks of birds and schools of fish. Pods of bikers on the road. The proverb is even in the Bible [...]

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Strategic investing: Value investing without the market timing

May 5, 2010
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Thanks to everyone who filled out my survey and entered the $10 Amazon.com gift card drawing. The responses were extremely helpful. I received 126 entries and e-mailed the two winners a week ago. They were lava****@gmail.com and josw****@gmail.com. If your e-mail address resembles one of those, and you didn’t get a code in your inbox, [...]

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