Daniel Crosby – A Big House Can Lure Even a Behavioral Expert

Daniel Crosby, Ph.D., is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. His first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into 5 languages. His latest work, The Behavioral Investor, is a comprehensive look at the neurology, physiology, and psychology of sound financial decision-making. In this episode, Daniel shares his worst investment ever buying a big house of his dream thinking that it would central to his happiness equation.    “Money can keep you from some level of heartache, but it can't buy really much happiness at all.” - Daniel Crosby What do you want to hear from the My Worst Investment Ever Podcast? Tell us here! Resources:  My Worst Investment Ever Book myworstinvestmentever.com Personal Benchmark: Integrating Behavioral Finance and Investment Management The Laws of Wealth: Psychology and the secret to investing success How to Start Building Your Wealth Investing in the Stock Market Topics Covered:  00:54 – Daniel Crosby’s professional and investment background as a psychologist and behavioral finance expert 03:19 – Daniel shares his backstory that led to his worst investment ever 05:57 – Expected annual appreciation of houses at 13%, according to Robert Schiller considering inflation and opportunity cost 07:40 – The money pit of his dream house: high property tax, high maintenance cost 05:57 – Expected appreciation of houses is at 13%, considering inflation and opportunity cost 08:50 – Lesson Daniel learned from his investment experience 09:50 – Geographical cures as Andrew explained 10:34 – Andrew’s takeaways from Daniel’s story of loss 13:43 – Daniel’s actionable advice to help people avoid making the same investment: Go speak a therapist that has some acumen around talking around financial issues. Main Takeaways Lesson 1: “Money is so wrapped up in considerations of self-worth and happiness. And disentangling those things would have been powerful for me. And would have led me to a better decision, I believe.”- Daniel Crosby  Lesson 2: “Money is better at buying the absence of worry or the absence of sadness than it is at buying happiness.”- Daniel Crosby Lesson 3: “One of the foundational things in my life is going through that period of time where I had no money, and I had complete happiness. It always tells me that money buys nothing. It does not buy happiness. It does not by sadness, it just is neutral.” – Andrew Stotz You can also check out Andrew’s...