Why a saving for a single goal is best
I am a big fan of writing financial goals. In college, I remember having goals about learning how to invest, finding a good job, and saving for retirement. I was following common wisdom that it's best to write out financial goals and make a plan for each. But was having all ...

Motivating a gym class using game theory
One of my favorite parts about writing this blog is hearing stories of how people have used game theory in real life. The other day I got an email from Jimmy who noticed game theory in action while at a group exercise class. Here is his story: Hey Presh, Thanks for taking the ...

Money lessons from art class
I didn't learn how to draw, or paint, or mold clay. I slightly improved artistically, if at all. But I still feel I learned a lot from my eighth grade art class. It all started with the first assignment. We were to create an art portfolio case from construction paper. The ...

How to work for a jerk: 4 tips
Every job seems to have it: the jerk boss. The boss who is stupid, or nosy, or pushy, or worse. At my first job, I thought I could just ignore the jerk boss, or perhaps escape him by finding a better job. No such luck. At each new job, I would ...

What money cannot buy
Things can get difficult when money is tight. Less money often means going to fewer movies, passing on gourmet coffee, and delaying big ticket purchases like a new car or elective surgery. Less money means fewer options, and there is a real tension about being limited and feeling powerless. In such ...

Blunder: Why Smart People Make Bad Decisions
It was at Stanford that I truly understood that smart people blunder just like everyone else. To be honest, the realization came as something of a surprise during my freshman year. I was stunned how people much smarter than me were making bad decisions. There was the person that set off ...

4 tips for making the most of the recession
The recession has been painful. Some of my friends have lost their jobs. Others are finding it harder to stay afloat. But this is no time to look down--rather, one must make the most of a bad situation. There are opportunities during bad times. But to see them, one has to ...

Why do people make stupid money decisions?
Reader question: Presh, random question for you: why do people make stupid money decisions? Any thoughts would be appreciated. My answer: This is an interesting question. The other day I saw someone pay more for food because he ordered ala carte instead of getting the combo. I certainly scratched my head after that ...

How Do You Deal with Money Jealousy?
My friend liked his $3,000 bonus until he learned someone else got $7,000. His resentment illustrates a common issue: adversity is often not a question of "why me?" but rather of "why not me?" Jealousy is the culprit and we could all enjoy life more by ignoring it. Jealousy is a ...

Improve Savings by Planning for Failure?
My friend was thrilled to find a multimedia section at her library. It had movies, even new ones, for a one-week loan. And the best part was DVD rentals were free. She quickly cancelled Netflix and rejoiced in saving hundreds of dollars a year. All was going well until she got ...

The 3 biggest obstacles to getting rich
Why am I not happy with my finances? I hear this question from many people. Some people blame not enough education, and schools are responding by increasing financial education classes. But will more information help? I used to think so, but here is a story that really got me thinking. My friend ...

Using mechanism design to improve your finances…it’s as easy as splitting a Coke
I have to thank my fifth grade math teacher for unintentionally introducing me to game theory. The game theory is hidden in the following extra-credit problem that he asked us: My mother would often give a can of Coke to me and my two brothers and tell us to split it. ...

The real meaning of wealth has to do with goals
What do you think about when you hear the word wealth? Really, think about it for a moment and write down a couple things that come to mind. Ok, so I bet most of you conjured up images like Donald Trump, a mansion from MTV Cribs, or Scrooge McDuck swimming in ...

A job you hate can be a paid learning opportunity in disguise
This article is cross-posted at Employee Evolution I used to fear calling random people on the phone. It was so bad that I didn't like calling for delivery pizza. It did not affect too much of my daily life until my first summer job where I had to call vendors about ...

Motivational tool: paying yourself first
Today, I focus on the method known as "paying yourself first." Chris Johnson at Wisebread explains the principle: The key to increasing your wealth without knowing it, is to take away your money before you even think you have it. This money is not actually being lost, you are simply just ...