The latest on the blog:

Fitness, Food, and Personal Finance: My Journey with Health and Weight Loss and How it Applies to Your Journey with Money

The First Step It was September of 2011 and I tipped the scales, didn’t like what I saw and decided it was time for a change – 282 pounds.  I had decided I wanted to make a change before but I had never actually done anything meaningful about it. This time would be different.  This time, I signed up for what was at the time an insurmountable challenge – I was going to run a half marathon.  I wanted to keep up the momentum of my decision and immediately signed up for the Rock N Roll Dallas Half Marathon that would take place six months later.  Now there was financial risk involved and as a broke college student I was not going to let my $125 entry fee go to waste. You may be reading this feeling much the same way about your personal finances – you know you have goals to achieve and that things could be done better but you don’t know where to start.  Taking the first step, building the momentum is key. The first step for most people is building a financial plan – you can’t know what your journey should look like until you have

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Behavioral Biases and Other Pitfalls to Beware of

Nobel laureate Daniel Kahneman is arguably the world’s leading authority on human decision-making and cognitive biases that exist due to irrational judgement.  As part of his research on the mind, he created a list of the five variables that lead to suboptimal decision-making as follows: A complex problem Incomplete and changing information Changing and competing goals High stress, high stakes involved Must interact with others to make decisions Investing involves all five of these variables, making it extremely difficult to consistently make high-quality decisions.  Furthermore, the more decisions that we force ourselves to make in investing the more likely we are to make the suboptimal decisions that will lead to underperformance.  This idea that the more decisions you have to make increases the likelihood that poor decisions will be made is referred to as decision fatigue. Have you ever been on a diet and after a number of days of focusing on what you are eating you cave in to an eating binge that wipes out all of the progress you had previously made?  Have you ever gone to the grocery store and shopped all of the sale items only to cave in and buy candy bars at the cash

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What Can March Madness Teach us about Survivorship Bias: Luck vs. Skill

As I write this post, it is the second round of the 2023 NCAA tournament.  I proudly boast a near perfect bracket – having selected the winner of 29 of the first 32 games correctly. I check my bracket’s ranking; it sits at #845 in the world – out of the roughly 17.3 million brackets created on ESPN’s Tournament Challenge.  I am tempted to share this with the world – post a screenshot to my social media, share it with my friends at the party we will attend tonight, maybe even write a blog post about what a skilled game picker I am. The reality is I’ve only told you part of the story. What is the rest of the story?  Well, the bracket I am so eager to boast about is one of 25 brackets I created (the most ESPN will let you create, by the way).  The performance of these brackets is all over the map including one that is in the bottom 1 percent of all brackets. Furthermore, I can’t even claim the skill of having made the selections on my near perfect bracket.  After having thoughtfully crafted a few (eh, 5) brackets I got lazy and

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