The Dumb Things Smart People Do with Their Money

Thirteen Ways to Right Your Financial Wrongs

by Jill Schlesinger

4.5(421 ratings)

11 min read

Brief overview

This book explores the ways people who seem savvy and successful can still make major missteps with their finances. It reveals the emotional blind spots and biases that drive our worst money decisions, and offers clear steps to fix them. By the end, you’ll feel empowered to take control of your financial future with renewed confidence.

Introduction

Welcome! Think of this as a roadmap for avoiding costly boneheaded moves with your money. Despite high IQs and impressive resumes, many people still stumble thanks to emotional attachments or hidden biases. If you’ve ever been baffled about why you keep making the same money mistakes, you’re in good company.

This summary unpacks the root causes of financial misjudgments—such as ignoring the need for a simple will or buying insurance you don’t really understand. It also shows how to solve these problems with realistic, everyday changes. You won’t find dense theory here, just practical insights and relatable stories.

By the end, you’ll see that having a solid financial life isn’t just about numbers. It’s also about conquering your own fears, illusions, and habits. You’ll learn how to step back, think clearly, and keep your money decisions grounded in what truly matters to you.

Real financial security begins with understanding your behaviors, not just your balance sheets.

Money and Emotions

Why do smart individuals sabotage themselves financially? Our feelings often overshadow logic when it comes to spending, saving, or investing. We might obsess over stock market swings or hold onto too much cash because we’re terrified of losses from past experiences.

These emotional hiccups spark behavior such as hoarding money in low-return accounts, or chasing trends. One faulty step? Failing to see money as a tool, not a security blanket. Another? Setting unrealistic targets, then living in perpetual anxiety and refusing to enjoy what you’ve saved.

Admitting emotions factor into money-making decisions is the first major step. When you realize you’re updating your finances according to old childhood beliefs or momentary fears, you’re better able to pause, breathe, and use a more balanced approach to decision-making.

Your strongest financial asset might not be your income—it’s your self-awareness.

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What is The Dumb Things Smart People Do with Their Money about?

In "The Dumb Things Smart People Do with Their Money," Jill Schlesinger peels back the layers of misguided financial decisions often made by intelligent individuals. This compelling guide delves into the emotional nuances that skew judgment, revealing how even the savviest minds can fall prey to financial errors. Through exploring financial psychology and common pitfalls, Schlesinger provides readers with a toolkit to forge a path to financial clarity and stability.

The book tackles an array of topics including hidden biases, unsuitable financial products, estate planning mishaps, and emotional decision-making in investing. With practical insights and accessible strategies, it empowers readers to debunk myths around personal finance, encouraging them to make well-rounded and deliberate financial choices. By the end, readers walk away with a candid understanding of their financial landscape and the confidence to make informed decisions.

Jill Schlesinger's compelling narrative sheds light on the urgent need for introspection and reform in personal finance. Emphasizing the real-life impact of unwise financial habits, she underscores the significance of correcting past mistakes and guarding against future ones. This book isn't just a guide; it's a transformative experience for those seeking to secure their financial health.

Review of The Dumb Things Smart People Do with Their Money

"The Dumb Things Smart People Do with Their Money" offers an illuminating exploration into the perplexing world of personal finance. Schlesinger masterfully uncovers the sneaky pitfalls that lead even the most logical minds astray—from ignoring the need for basic estate planning to getting tangled in unsuitable financial products. Through simple language and poignant stories, she brings to life the emotional undercurrents that underlie poor financial decisions.

What sets this book apart is its emphasis on practical, real-world applications. Readers are treated to insightful takeaways they can immediately apply, such as debunking costly money myths, understanding the power of a will, and optimizing investment strategies. Schlesinger's writing style is both engaging and approachable, making complex financial concepts easily digestible."

A noteworthy aspect of the book is its broad relevance. It caters not only to finance professionals or economists but to anyone looking to refine their monetary approach. With a friendly yet professional tone, it invites readers of all backgrounds to a nuanced understanding of their financial behaviors, concluding on an encouraging high note—financial redemption is possible, and this book shows the way."

Who should read The Dumb Things Smart People Do with Their Money?

Young Professionals: Often on the cusp of pivotal financial decisions, young professionals can benefit from the foundational knowledge shared in the book.
Future Retirees: With topics like estate planning and retirement savings, those nearing retirement will find invaluable guidance in securing their financial future.
Neuroeconomics Enthusiasts: Readers with an interest in the psychological aspects of finance will appreciate insights into emotional influences on money decisions.
Individuals with Debt: Those seeking to break free from debt patterns can apply Schlesinger's strategies for financial overhaul.
Financial Advisors: A practical tool for professionals to understand clients' emotional barriers and provide informed financial counsel.

About the author

Jill Schlesinger is a Certified Financial Planner (CFP) and the Emmy and Gracie Award-winning Business Analyst for CBS News. She has 14 years of experience as the co-owner and Chief Investment Officer for an independent investment advisory firm and began her career as a self-employed options trader on the Commodities Exchange of New York after graduating from Brown University. Schlesinger has won several awards, including a 2018 Personal Finance Reporting Award from the Radio Television Digital News Association (RTDNA)/National Endowment for Financial Education (NEFE) and the 2018 National Association of Personal Financial Advisors (NAPFA) Special Achievement Award. Her book, "The Dumb Things Smart People Do with Their Money: Thirteen Ways to Right Your Financial Wrongs," was published in February 2019 by Ballantine Books.