In today’s show we’re covering https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/nudge/ (Nudge economics) http://www.shlomobenartzi.com/save-more-tomorrow (Save More Tomorrow ) https://www.behavioraleconomics.com/resources/introduction-behavioral-economics/ (Behavioural economics) and its applications in personal finance There's always been a significant disconnect between academia and real-life – if you disagree with this comment, you’re an academic, and that’s okay, some of my best friends are academics. It’s important though, that this tension exists between real-life and acedemia because without a higher degree of thought and analysis of data, additional insights can’t be gained - which ultimately handicaps those in the field. On the other hand, without a good understanding of the issues found in the field, researchers can often make insightful discoveries in potentially redundant areas. What I really like about behavioural economics, is that it provides potentially a better framework to understand how people make decisions and why – When it comes to making investment decisions from a wide range of choice, often everyday investors choose options that may not be the best – even the experienced investors out there – what’s interesting here though is that these investment decisions can be predictably irrational. This sounds bad but it’s not a put-down, it’s simply acknowledging reality. When it comes to making good financial decisions, just like with eating well and exercising, having choice and access to the right information is important, but I think there’s actually more value in understanding why people actually choose to do what they do. To learn more about the work that Ravi does, please visit the team here: https://www.bi.team/ (https://www.bi.team/) To watch Richard Thaler present to the Chicago School of Economics, https://www.youtube.com/watch?v=A1M9VSgsSW4 (then watch this).  ______________________________________________________________________________ The NZ Everyday Investor is brought to you in partnership with https://hatch.as/NZEverydayInvestor (Hatch). https://hatch.as/NZEverydayInvestor (Hatch), let's you become a shareholder in the world's biggest companies and funds. We're talking about Apple and Zoom, Vanguard and Blackrock. So, if you're listening in right now and have thought about investing in the US share markets, well, https://hatch.as/NZEverydayInvestor (Hatch )has given us a special offer just for you... they'll give you a $20 NZD top-up when you make an initial deposit into your https://hatch.as/NZEverydayInvestor (Hatch )account of $100NZD or more.  Just go to https://hatch.as/NZEverydayInvestor (https://hatch.as/NZEverydayInvestor) to grab your top up.  ________________________________________________________________________ Like what you’ve heard? You can really help with the success of the NZ Everyday Investor by doing the following: 1- Tell your friends! 2- Write a review on https://www.facebook.com/TheNZEverydayInvestor/ (Facebook), or your favourite podcast player 3- Help support the mission of our show on https://www.patreon.com/Nzeverydayinvestorpodcast (Patreon by contributing here) 4- To catch the live episodes, please ensure https://ungaro.co.nz/nzeverydayinvestor/ (you have subscribed to us on Youtube):  5- https://ungaro.co.nz/nzeverydayinvestor/ (Sign up to our newsletter here) NZ Everyday Investor is on a mission to increase financial literacy and make investing more accessible for the everyday person! Please ensure that you act independently from any of the content provided in these episodes - it should not be considered personalised financial advice for you. This means, you should either do your own research taking on board a broad range of opinions, or ideally, consult and engage an authorised financial adviser to provide guidance around your specific goals and objectives....