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money health weekly

SIGN UP AND NEVER MISS A POST:

Information Isn't Enough


 

"If you want to hit me with logic I don't want to chit chat."


-Dean Martin

 

I'm in my grandmother's kitchen stuffing my face with dumpling soup. It's the mid-1990s and I ride my bike everywhere and am gone for hours. My grandmother knows I love her dumplings and makes it sometimes to get me to come over and visit.


While I'm eating she tells me to slow down and maybe not eat so much. She doesn't want me to gain weight. I ask how I could get fat and she tells me that food has calories and I don't want too many calories. I ask how many calories are in the soup and she doesn't know exactly. It's all a mystery to me.


Fast forward several years and I learn about food labels on the side of packages. These labels not only tell me how many calories are in the food, but also the breakdown of those calories into fat, carbohydrates, and protein. I also get to learn how much sodium, calcium, and cholesterol are in the food.


Now I'm an adult and, unfortunately for my waste-line, all this perfect information has not changed how much or what I eat. It seems information isn't enough.


The same is true with your money.



information is not enough

Myth: More Information Is Needed

There is a common belief that if we want to make smarter decisions with our money, we need more information. Many of us think that money issues are there because we don't know what to do.

  • I overspend because I don't have enough information about budgeting

  • I don't save enough because I don't have enough information about savings options

  • I lost a lot of money in the last bear market because I didn't have enough information about investing