Why Smart People Make Poor Money Decisions – with Vicky Reynal
4/29/202645 min
British households are sitting on £430 billion in cash that could be invested. So what's stopping us?
The truth is, most people are terrible with money - but it's not for lack of knowledge. It's how we're wired.
In this episode of Investing Unlocked, Georgie Frost and Simon Lambert sit down with financial psychotherapist, Vicky Reynal - Times columnist and author of Money on Your Mind - for a rare look at the psychology behind our most common investing mistakes.
They get into why intelligent, successful people still make poor money choices, how the beliefs we picked up in childhood shape the way we invest today, and how to rewire those subconscious patterns and take back control of your financial future.
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Clips
Showing 10 of 12Transcript preview
First 90 secondsVicky Reynal· Guest0:00
Money is linked to kind of evaluation and comparison. There's almost a sense that it will deliver some kind of verdict about our worth. We've, um, we've destigmatized sexuality, race, mental health, and this one still is very much a taboo.
Georgie Frost· Host0:18
[upbeat music] Welcome to Investing Unlocked: Making Money Make Sense with me, Georgie Frost.
Simon Lambert· Host0:27
And me, Simon Lambert.
Georgie Frost· Host0:28
And we're joined today by Vicki Rainow, financial psychotherapist, Times columnist, and author of Money on Your Mind: The Psychology Behind Financial Habits. But first, Simon, time to pop psychoanalyze yourself in front of the professional. Um, what do you reckon is your, I guess, biggest financial weakness, I suppose, when it comes to investing, or otherwise?
Simon Lambert· Host0:49
Time's limited, right? I haven't got an hour- [laughs] ... to talk about my problems. Procrastination.
Georgie Frost· Host0:55
Yeah?
Simon Lambert· Host0:56
I'm terrible at procrastinating.
Georgie Frost· Host0:58
Okay.
Simon Lambert· Host0:58
I've wonderful intentions. Um, my hit rate at seeing through those intentions is, is remarkably low. I make the mistakes I tell people not to make.
Georgie Frost· Host1:09
Do you procrastinate in other areas of life, Simon?
Simon Lambert· Host1:12
Oh, yeah, massively.
Georgie Frost· Host1:13
Told me, yeah.
Simon Lambert· Host1:13
Yeah.
Georgie Frost· Host1:14
Yeah.
Simon Lambert· Host1:14
Yeah, yeah.
Georgie Frost· Host1:14
Yeah, yeah, yeah.
Simon Lambert· Host1:15
Yeah. No, it's definitely. Yeah.
Georgie Frost· Host1:16
Yeah, 'cause I was thinking- Yeah ... one of my biggest things, I'm quite impulsive. Especially when it comes to investing, I think, "Well, what a good idea. Let's throw loads of money at it."
Simon Lambert· Host1:23
Well, I, I read something where I also diagnosed myself as time blind a while back. Yeah.
Georgie Frost· Host1:27
Oh.
Simon Lambert· Host1:27
Apparently, that's a thing.
Georgie Frost· Host1:28
What's that?