• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Wealth Pilgrim

No Money Worries. No Matter What.

Neal Frankle featured in
  • Home
  • Life Insurance
  • Investing
    • Build Strong Investment Building Blocks To Avoid Going Broke In Retirement
    • Systematic Mutual Fund and ETF Investing
    • Stock Market Investing Guide
    • Choosing the Right Investment Brokerage Guide
    • How Bonds Work Guide
    • How Banks Really Work Guide
    • Annuities – What You Need To Know Before You Invest
    • A Beginners Guide To Buying Individual Stocks
    • Create A Pool Of Great Mutual Funds and ETFs To Pick From To Secure Your Retirement
    • ETF and Index Fund Investment Guide
  • Earn More
  • Banking
  • Retirement Planning
    • Retirement Guide
  • Ask Neal a Question
  • Reviews
    • Upgrade Personal Loans Review
    • Lending Club Review
    • Prosper Review
    • Ally Invest TradeKing Review
    • CIT Bank Review
    • LegalZoom Review
    • Lexington Law Review
    • Airbnb Host Review
    • Should You Drive For Uber?
  • Tax
  • Courses
    • Raise Your Credit Score So You Can Buy a House – Free Video Course

How to Fix an Expensive Life

by Neal Frankle, CFP ®, The article represents the author's opinion. This post may contain affiliate links. Please read our disclosure for more info.

If you have an expensive life, a recent Harvard study solves the problem (or at least it can really provide insight into the solution). I read about it in a cool new book, The Secret Language of Money by Dr. David Krueger.

Here’s a three-minute video sharing a fascinating study done at the venerated college. I think you’ll find the results astounding…I know I did. This isn’t about retiring rich or creating wealth. It’s about your life – right now.

After you watch the video, let me know how you are going to apply the lessons of the study…and when.

 

Tweet
Pin
Share

Reader Interactions

User Generated Content (UGC) Disclosure: Please note that the opinions of the commenters are not necessarily the opinions of this site.

Comments

  1. Rob Bennett says

    January 14, 2010 at 8:08 AM

    Neal:

    You look great on the video!

    I ask that you and your readers reflect on whether we all have been paying too much for stocks for a long, long time now.

    Stocks were priced at three times fair value before the crash. That means that, for every $300 we put into our 401(k) accounts, we got back $100 worth of stocks and $200 worth of cotton-candy nothingness that of course was fated to go “Poof!” over the course of time.

    The Efficient Market Theory (the intellectual framework for the conventional investing wisdom of today) says that this is impossible. The entire Buy-and-Hold model starts with an assumption that humans would never collectively overpay for stocks, that the market always gets the price roughly right.

    This study suggests that this is wrong. Humans overpay for things all the time because they get caught up in the excitement of “beating” others (why else would people pay $300 for a one-hundred-dollar bill?)

    If we considered that stocks are owned by humans and that humans simply do not behave in accord with the assumptions of the conventional model, we could all invest far more effectively, retire many years sooner, and quickly get out of this economic crisis. This study is teaching us something important.

    Rob

    Reply
  2. Shirley Docken says

    January 13, 2010 at 10:55 AM

    I am enjoying your blogs, YouTube videos and all that food for thought.  This one especially.  Thanks, Neal.

    Reply
    • Neal@Wealth Pilgrim says

      January 13, 2010 at 11:12 AM

      It’s an honor….thanks for your kind words….

      Reply
  3. Neal@Wealth Pilgrim says

    January 13, 2010 at 7:21 AM

    Oh Sam……I don’t know if that’s a compliment (given the results of these goof balls)

    Oh….here’s a solution if you want to pay less tax….make less money! I know you wont’ be making any ROTH conversation mistakes – and needlessly paying taxes.

    Reply
  4. Financial Samurai says

    January 13, 2010 at 7:12 AM

    Neal, thnx for highlighting the study. You kinda look like a Harvard professor! lol.

    I spend too much on taxes. Gotta fix that!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Are You Human? * Time limit is exhausted. Please reload CAPTCHA.

Primary Sidebar

Who is Neal Frankle

Neal Frankle

I'm a CERTIFIED FINANCIAL PLANNER™ Professional with more than 25 years of experience. I feel very blessed and hope to share my personal financial experience and professional wisdom with readers of WealthPilgrim.
Read More »

Stay Connected

Facebook Twitter YouTube RSS

More Categories

Career Development
College Funding
Credit Cards
Credit Score Fixes
Money and Marriage
Debt Relief
Estate Protection
Property Investment Loans
Small Business Strategies
Spend Less Money

Disclaimer

Wealth Pilgrim is not responsible for and does not endorse any advertising, products or resource available from advertisements on this website. Wealth Pilgrim receives compensation from Google for advertising space on this website, but does not control the advertising selection or content. Please do the appropriate research before participating in any third party offers. The information contained in WealthPilgrim.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. Wealth Pilgrim does not provide investment advisory services and is not a registered investment adviser. Neal may provide advisory services through Wealth Resources Group, a registered investment adviser. Wealth Pilgrim and Wealth Resources Group are affiliated companies. In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving payments,access to free products and services for product and service reviews and giveaways. Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.


About · Contact · Disclaimer & Privacy policy

Copyright © Wealth Pilgrim 2022 All Rights Reserved