12 Books - Author Led Business Book Group discussion

This is our official discussion of our January 2014 book, "The Behavior Gap" by Carl Richards

I'm thrilled you've chosen The Behavior Gap for your January book. It's a privilege, and I hope I can help make your reading experience even better. To get things started, I'll throw out some questions during the next couple of weeks.

To start, there's no question The Behavior Gap plays out in different ways for each person. So when we talk about that gap, how do you see it playing out in your life?

I look forward to hearing your answers, and feel free to post questions about the book. I'll do my best to answer them.

If I understand it correctly the behavior gap is the difference between what you know is smart or logical to do finances and doing what is trendy or catches the impulse, such as selling when stocks are lowering and buying when they are high. Is that correct?

I like the conversational style of this book and am looking forward to getting further into it.

I fear that the behavior gap plays out in my life as doubt. I read a lot and think about what I am hearing and I suppose make decisions based on my own political biases. I feel like I am waiting for the other shoe to drop.

I just started as well. Sounds interesting!

I just finished reading about the differences between fear and greed oriented strategies. Last year my wife and I hired a new financial advisor. The first thing they had us do was complete a short personality quiz type of thing that was designed to determine what level of risk we prefer. I think that had everything to do with determining if I prefer a greed or fear strategy. In case anyone is wondering its fear for me.

Debra wrote: "If I understand it correctly the behavior gap is the difference between what you know is smart or logical to do finances and doing what is trendy or catches the impulse, such as selling when stocks..."
Debra, you're definitely on to one aspect of the Behavior Gap. I'd also add that we create a gap when we make decisions based on emotion, which can be triggered by what we see in the news, but could just as easily come from our own personal biases.

For instance, if it's something that we saw our parents do, it can be hard to see if our decision is really in our best interest or if we're just following a habit we learned from our parents.

Just started the book and enjoy the conversational tone and common sense ideas on the napkins!! Whether financially or otherwise.

I have found this to be an interesting read so far. Perhaps it is because I am one of those who doesn't chase the latest trends/tips, but continually looks at the long haul.

I have to admit that I am reading this for the application to life in general rather than for the financial influence. I am looking forward to greater insights...

Debra wrote: "I have to admit that I am reading this for the application to life in general rather than for the financial influence. I am looking forward to greater insights..."

Debra, its interesting to consider in what other arenas of life do we make emotional decisions instead of rational ones...

Jacob, I think the question would be better put as what arena in life do we not often make emotional decisions instead of rational ones....what education to get might include where our parents and grand parents have been or where our peers are...romance and life partners are a given...how to rear our children...even what we eat and how we spend our free time...then there is the one, how do we treat those we think have offended us in any of life's arenas, including the financial one....

Just finished chapter 5 and really got me thinking. Goes to the idea this book is much more than just money!
Wrote down a few thoughts here...
http://darylldorman.blogspot.com/2014...

Daryll wrote: "Just finished chapter 5 and really got me thinking. Goes to the idea this book is much more than just money!
Wrote down a few thoughts here...
http://darylldorman.blogspot.com/2014......"

Thanks Daryll. I commented on the blog

Debra wrote: "Jacob, I think the question would be better put as what arena in life do we not often make emotional decisions instead of rational ones....what education to get might include where our parents and ..."

Too true Debra!

Just finished it. Great book. While the focus was on investments, the main themes also apply to other life decisions.

I just finished as well. I appreciate the brevity of the book. I was wondering if the book was going to talk about relationships and money and I really did like the chapter about "talking about money."

I agree that the principles of the book universally apply. I also think that in many life arenas its good to make emotional decisions and not rational ones :)

I believe it is a challenge to really think about money...and not just focus on how much you make or want to make. As the author points out, you can't make a plan, because anything can change at any time. Yet having an idea of what you WANT money to mean to you will make a difference too. Personally, except for a year or two when I first got married - when money (or lack of!) controlled my wife and I lives (I also wasn't honest about it), I have been fortunate in making decent money and therefore providing the lifestyle my wife and I desire. Just a matter of staying strong once you have that understanding of money and not being influenced by others who try and impose their own ideas of "success" on you. There will always be a bigger house to be had...

I am most concerned with making what I have last once I am retired. My needs are simple, but the economy is in such a shambles that I truly believe the less I need the better off I will be. Think I am behind. I am just starting Chapter 5.

George Kinder prefers to call financial planning life planning. During your reading, did any particular ideas pop out to help you better align your financial decisions with your values and the things you’ve determined are most important to you?

I know my values and what is important. What I do not know is how to get there? I plan to live a long time and want what I have to last. Even when there are times that I need to help children, friends or others out.

Loved the section on page 79 about the Economist smirk. And yet 1M out of the total population is a very small number and there is something to be said for reading widely, as long as you know where the author is coming from and can use a little judgment in considering his ideas. Again it is like knowing your values and then using your reading as input to be considered, not gospel to be followed.

Really loved the Zen master concepts that were added to this book...chop wood/carry water pg 67. Also the questions of what would you do if you only had this much time...when that question comes your way of thinking changes. I was lucky enough to have it some 10+ years ago and while it was erroneous in that I did not die, I was so grateful for the change in thought direction.

The honesty of "self exploration can be a painful process"...love it!!
Too much Info, everybody's doing it, up to date way to share this classic weakness among mankind!
Pg 84 "Maybe the fact that you sold that last time things got rough is telling you something." We opt out too fast today in so many things, especially relationships. I believe this is a concept that cannot be looked at too closely...this coming from someone who has been divorced more than once...truth rings true in all facets of life in my opinion.
Pg 86 had me thinking about the birthing process and how when we tighten up we mess up in that we do not allow our bodies...or our finances...or our relationships to be able to breath and do what they might otherwise do...
In otherwords we can make things much harder on ourselves than they need to be.
The caution here is to see that we apply the stress where it serves the process and not where it holds us back from accomplishing our goals.
In birthing, if we breath and relax the rest of the body, the organs needed to fulfill the birthing are allowed to do their part...so it is in life...and finances (?)

Enjoyed the game designers story on page 88. What a way to look at the world! We need to ask is this leading me into my destiny or purpose or is it simply meeting someone's need for power or recognition or whatever...is what I am engaged in serving my life purpose, as I define it.
Stop watching it...the old adage "a watched pot never boils"....do what is needed and then let it live...let it be and be the observer so that you might understand what it will teach you ...can we truly do anything more???
Checking the Dow or checking you children's grades to get them to college...so true...take part in the process of becoming...be engaged....be a creator not a reactor to circumstance which is all you are when you stare at the Dow....
"Money decisions are emotional decisions", so it is locked in the temporal world, but all things temporal are spiritual, so to ask for what we need and expect it to be given is a matter of faith and confidence in the creator or the universe. Here is why we need to know ourselves and be honest that we are not simply coveting another but are pursuing our personal destiny.
Pg 94 Practicing self awareness, understanding past mistakes, and acting from our deepest instincts...I could not help but think this sounded a lot like forgiving ourselves and allowing life to take its course on some level...
looking forward to continuing the reading...thank you!

I have enjoyed others comments and insights as well!
We each have so much to share!
I offer this: Are we locked into what this life has to offer the body and our cognitive senses or do we "fly" with the understanding that this life is a place of learning about our potential here and beyond and our willingness to embrace that?

Sorry, my life goal is spiritual understanding in the pursuit of eternal life and my language reflects that. It is a part of me I have allowed to flourish and mean no offense or "uppitiness" in expressing it. I do place it as my highest priority and hope that in so doing I can leave a significant trail of possibilities to those who I live among and who will come after me. Namaste~

Loving all the conversation going on here!

Carl, my greatest insight from the book, as it relates to managing my money, is to have a plan and stick to it. Second strongest insight is that there is great value to having a professional who can help me achieve my goals and stick to my plan.

My Amazon Review:
http://www.amazon.com/review/R3S4BOU7...

Daryll wrote: "My Amazon Review:
http://www.amazon.com/review/R3S4BOU7..."

Daryll, thank you so much for taking the time to post a review! It may seem like a relatively small thing, but they have a massive impact on helping people decide if the book will be helpful to them.

Barbara wrote: "I know my values and what is important. What I do not know is how to get there? I plan to live a long time and want what I have to last. Even when there are times that I need to help children, frie..."

Barbara, the fact that you're even asking the question puts you miles ahead of many people. I won't go into detail here, but I recommend that getting where you want to go depends on being really clear about where you're at now. If you haven't already seen it, I provide some details on that process in an article I wrote for the Times: http://bucks.blogs.nytimes.com/2012/1...

Of course, there's more that will come after, but we've all got to start somewhere, right?

Debra wrote: "I have enjoyed others comments and insights as well!
We each have so much to share!
I offer this: Are we locked into what this life has to offer the body and our cognitive senses or do we "fly" wit..."

Debra, I really enjoy hearing how other people see my book. It's enlightening to see how other people take ideas and apply them. Your comments have shown me yet another way to look at concepts I talk about on a regular basis. Thank you for that.

Jacob wrote: "Loving all the conversation going on here!

Carl, my greatest insight from the book, as it relates to managing my money, is to have a plan and stick to it. Second strongest insight is that there is..."

Jacob, your second insight is the one I think a lot of people struggle with. Why shouldn't we be able to invest (and behave) on our own? It seems like a personal failing if we can't, so we miss the opportunity to have that guardrail in place (an advisor) to keep use from going over the edge. Glad to hear you can see the benefits of working with a professional.

I have finished the book and am delighted with the results. Slow and steady wins the race...I like that concept in finances and elsewhere. It has given me some motivation to look at my finances again and to put things into place that will give me some security.

I especially liked the "white elephant" story. Don't we all have that going on! And that we view that "elephant" from different angles ... and conversation is really the only way we are going to know how another views something. It is sad that we are hesitant to talk to those we are most intimate with about how they think about things. It says a lot about who we are I think.

I liked your humility in suggesting you needed to remind yourself where your wife was coming from and even admitting the recognition of it was not enough to change it over night.

Most impressive is the comment about the children's view of what we say about money. That made a lot of sense. To think our children survive us at all is a bit of a miracle because we often do not know where we stand on things till they are long gone and raising their own families. Interesting isn't it. Glad there is someone else in charge and not just us. :)

Simple solutions can mean needing to change behavior...wow, mindset, attitude, how sad it is that humanity would rather trudge along in trauma than alter themselves and "fly with the eagles".
I cannot change the world, but I change me. :)

I said before I read this book for spiritual reasons and here is "my personal take and interpretation" of the last few sentences of the book:

A spiritual walk may at times seem boring but it is secure with guaranteed Fabulous Returns!! That is where I am placing my bet and my savings is going to grow as well, thanks to your encouragement and reminders Carl. Keep up the good work, no doubt your mom is proud!

Just finished it and reviewed it. I wish that I had read it 30 years ago. Hopefully I would have made better decisions during the second thirty years of my life. I look forward to the call.

I just finished this book - very powerful look into how to develop and maintain a financial plan in the face of all "the talking head experts" that attempt to sway us to invest our hard earned dollars. I enjoyed the pictographs/drawings that concisely displayed the thought that was being conveyed to the reader. I enjoyed the concept with regard to his planning style - I don't need to follow the markets on a minute by minute basis - I need to follow my plan - and don't be swayed by the emotions. Very clear on the counter intuitive nature of successful investing. A quick read and something I can apply today to my future financial planning sessions!

Agree Jim. good synopsis. We all know this. It is the doing that is difficult.

Where do you want my review to go?

Barbara wrote: "Where do you want my review to go?"

Barbara, feel free to email me the link or share it here for the group!

Look forward to speaking to everyone today.

Carl wrote: "Barbara wrote: "I know my values and what is important. What I do not know is how to get there? I plan to live a long time and want what I have to last. Even when there are times that I need to hel..."

I calculate my net worth at the end of each year along with other evaluations of where I am and where I want to go. I seem to do most of the right things, but I still do not feel comfortable about how to reach that future.

Review - This book is an easy read that reminds us to stick to the bottom line, to know where we are and where we are going. The conversational style makes it feel as though you are sitting down with a friend. It surprised me that the most important thing I took away from this book was the reminder "When you get up in the morning, remember what makes you really happy." and going right along with that thought "Joining a group that meets once a month produces as much happiness as doubling your income." As I move toward retirement, I find my needs are small and I am contented with all that is. A very nice place to be.