financial psychology Quotes

Economics is (now) about emotion and psychology.

Money is 80% behavior, 20% head knowledge. It's what you do, not what you know.

A free-enterprise economy depends only on markets, and according to the most advanced mathematical macroeconomic theory, markets depend only on moods: specifically, the mood of the men in the pinstripes, also known as the Boys on the Street.

Every one, even the richest and most munificent of men, pays much by cheque more light-heartedly than he pays little in specie.

We can think about how we reduce the pain in paying. So, for example, credit cards are wonderful mechanisms to reduce the pain of paying. If you go to a restaurant and you are paying cash, you would feel much worse than if you were paying with credit card. Why? You know the price, there's no surprise, but if you're paying cash, you feel a bit more guilt.

Money is what makes a man act funny.

People feel a great deal of their wealth or lack thereof in their home value. Despite the fact they're living there and not going to sell it per se, it does have a big psychological effect.

Money ... it's both the most complicated and the most passionate relationship in our lives.

[There will be movement toward] behavioral economics... [which] involves study of those aspects of men's images, or cognitive and affective structures that are more relevant to economic decisions.

The avoidance of money is just as psychotic as being attached to money.

Your priorities, passions, goals, and fears are shown clearly in the flow of your money.

I've learned there's a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.

Money means in a thousand minds a thousand subtly different, roughly similar, systems of images, associations, suggestions and impulses.

The lesson from behavioral economics is that people only save if it's automatic.

Pay cash. For some reason, it's harder for people psychologically to part with their cash than it is to swipe a card. Maybe it's the act of physically seeing the money change hands, or maybe it's because you don't want to break a $20 for a $2 cup of coffee.

'Freakonomics' began with a 'N.Y. Times Magazine' profile I wrote about Steve Levitt. I was working on a book about 'the psychology of money,' and since Levitt's an economist, my editor thought I'd be the guy to write about him. Fact is that Levitt has almost no interest in either psychology or money.

People spend the money where the money is. Nightmare never goes away.

There's something on Wall Street called PIG - panic, ignorance, and greed. Those are the big sins. I'm not greedy, I knew I was ignorant, and I didn't panic.

You will never let yourself have more money than you think you deserve.

We each focus on what we're going to buy, but that's an incorrect focus. Focus instead on why you want to spend the money on this or that. What feeling in you does it satisfy?

Intelligent investment is more a matter of mental approach than it is of technique. A sound mental approach toward stock fluctuations is the touchstone of all successful investment under present-day conditions.

When I said "the pocket of the banks," it is not necessarily a mercenary relationship. It is a mindset.

What most entrepreneurs don't understand is that it isn't the economy that bursts a bubble, but investor psychology.

If you want to make a million you don't have to understand money, what you have to understand is people's fears about money

Money won is twice as sweet as money earned.