Daniel Kahneman: Why We Make Bad Decisions About Money (And What We Can Do About It)

[@deepakgiri8854]

Wish I was here before 6 yrs when people were starting to comment on this video. I read his book "Thinking fast and slow" and this has completely changed my way of looking at problems and risks and many mental fallacies. If i had read it 6 yrs ago I feel that I could have learnt to deal with prblems and risks more effectively than wat i am doing now.

[@bipinbhurtel6895]

Good on you Dipak. Have you read Noise yet?

[@colossalko]

He talks about efficient thought processes. This is entirely habitual you can't just get up and make rational choices. You can't just discover a way to view things from many perspectives. It comes from years of practice and being surrounded around the right people. Also most people don't have the skills necessary to think in new ways like how they struggle learning new languages. If it were easy we could all speak 15 languages. The brain is very hard to train because you can't see progress.

[@kayokk-]

This man is a legend in this field of decision-making. Period…

[@lowereastsideastrologist7769]

Yes, a legendary idiot.

[@Mr.Feckless]

What a charming reasonable character. :)

[@Jetman123]

Regret is a problem, but you will have no regrets if you use failure as an a opportunity to learn. Bounce back from your mistakes, channel them into conviction to do better next time. Remain perceptive and always think about how you can do things better for yourself and others. It works for me.

[@no_more_spamplease5121]

There are "failures" which are caused by incomplete or imperfect information at decision making time. For instance, when you buy stocks of a profitable business that later tanks. There is not much "opportunity to learn" in such scenarios, as the next stocks you buy will also have the inherent issue of incomplete information.

[@dargos0312]

People frame things narrowly because they are operating out of a state of threat ie. stress, anxiety, social threats. We prioritize based on wants rather than needs.

[@suhailym4116]

Thank you Dr. Kahneman for all your valuable insights and contributions to this world!

[@livedandletdie]

It's possibly to live a life of no regrets. But it's hard, firstly you need to have a wide spectra of knowledge in a wide area of subjects and philosophy. Which makes it easier to foresee problems that will arise from the decision of the current problem. And then you have to be able to weigh one problem over another to understand what to do, while not neglecting your own moral rules.

[@DrFilch]

"I cant remember a time when I have done something I later regretted." " Ironically, I frequently regret doing this." I which case you do make a choice you regret. Making the choice to not act is an action, so what you just said isn't that you don't do anything, only that you do not dare do what you truthfully want, in fear of failing Grab life by the horns, force it to work the way you want it to;The only way to truly avoid regret is by always working for a better world, both for you and others

[@toasty4000000]

I cant remember a time when I have done something I later regretted. I do things this way because I hate regret. Sometimes I will do nothing as opposed to making a decision I am not completely sure about, just so there will be no regret. Ironically, I frequently regret doing this. I wish I could just take action, maybe mess up a few times, Im just afraid to. I guess it is impossible to live a life without regret, and yet I continue to try to pursue one. Maybe one day I will learn from myself.

[@---uc6mz]

I only just saw this, and was curious how you have been getting on @kakunapod. I know this was 9 years ago - have there been any changes to your decision-making process over time?

[@ratoncoeur3321]

@@---uc6mz Yes, I too a curious

[@BrunoPST2010]

And also, narrow framing is a saving-energy device. If you were to consider all the possibilities - or, at least, a significant amout of those - and try to do the most rational decision based on these possibilities, you'd spend time and energy. The brain is accostumed to work in a way so that it automatically tends to ignore or neglect some parts of the problem, in order to make it easier and faster to make a decision. And that, naturally, sometimes causes more harm that the good it intended to.

[@iparagonepersonalvlogs1061]

Exactly, his work was about cognitive heuristics after all

[@docwilson8d]

This is true but its all in effort, we only use 15 to 25% of our brain ability, but it all comes in the effort to expand our use and do more. Some people take the effort, some people sit and be lazy. It's all in a persons effort and perspective

[@ProjectHazy]

NEVER REGRET WISDOM!

[@JoshBoris]

Not everything can be packaged in a self-help soundbite. Some people have to step back and notice errors in systems, without having to proclaim all the answers and solutions.

[@TheTkid0068]

There are plenty of people who live life without conscious regret. They are called morons. Regret = Reflection of Choice = Self-study = Self Awareness = Wisdom = Growth.

[@Jammsbro1]

More from this guy,

[@morganthem]

Therefore, the sentiment expressed in the video by David Ropeik on bigthink about simply taking more time to think to counteract the tendency to be always slightly irrational as a default method of operation in the mind is a good starting point I believe that holds some relief. :)

[@aluisious]

This all sounds fairly wise, which is more than can be said for many such videos.

[@windsurfing47]

I have to laugh at most comments adding their "opinions". Do you people know that he is the co-creator of thise field?

[@makeitbetter7436]

Рассказывает чертовско интересные вещи. Книга великолепна хотя и немного суховата среднего читателя не смотря на невероятный объем полезной инфы . Меня ребята вдохновляют на создание контента.)

[@xxxfealerxxx]

I politics inaction on some some extent can be worse than simply taking a chance. Whereas if your wrong, you've at least tried. Compared to the ones who do nothing when corruption or a problem persists-in a democracy as dead as our 's it still befit our people with voice.

[@docwilson8d]

if only we would heed to his wisdom and actually do what he says, our country could be better

[@sjysong]

thanks big think brilliant as it always is

[@WindsorEssexRealtor]

I wish it was that simple. Lol 1,000 dollars in 1970 bought way more good than today so saving is out of the question. The only way is to find out which market are going to become a bubble and ride each wave (gold, nikkie, nasdaq, housing and now back to gold) get in on the way up, sell when in a bubble and when the market crashes throughout history buy stocks and real estate at 8-10% dividend/cap rate. Now the hard part...how good are you at fundamental and technical analysis. Most of us are a

[@nayanendumisra6764]

I want to salute him for his wisdom. The talk is very lively and refreshing. ❤🎉😂

[@CaptainKanuk42]

Bankers behave very recklessly with our money because they gain no matter what through salary and bonuses. That's what caused the savings crisis. If you're in a community credit union with a decent interest rate there's no way inflation is going to outpace you.

[@alexxavier84]

'read books'. He has already written some excellent stuff, if you are interested in learning.

[@BloodnutXcom]

I didn't understand what was his message :(

[@vardaanbhave2231]

What does he say on 2:35 - 2:45

[@Menuki]

I miss Michio Kaku..... I was so sad that he made a commercial for "Battleship"....He better come back with a perfected lightsaber

[@SirMrMcMsMrs]

watch lectures, BigThink is not the only way to learn on youtube dood

[@Alienalloy]

quite frankly the stock exchange is one massive pyramid system, you buy in.. you get savvy you sell to the less savvy.. and so it goes.... i personally think stealing food from the week is is as good an analogy as you'll get...

[@itzJennesto]

Great insight!

[@GlobalWarmingSkeptic]

(cont) Money may give you more options, but it'll never make you joyful or thankful for what you do have. The more possessions you have, the more you have to protect them, and the stress becomes greater than the freedom provided by financial control. So, whether you are right or wrong depends on who you talk to. I have a family member living in a tent and he is happy with it. I have a rich grandmother who does nothing but complain angrily at trivial things. Money is meaningless in the end.

[@NiciO.G]

Global Warming Skeptic correlations doesn't equal causation though ...

[@alinaciobotaru1698]

GWS I don’t really know if money is meaningless. If you really though that, you wouldn’t be watching this. I can think of a lot of reasons why money is important. But at the end, it’s good to realize that money is just a means to an end. We don’t want momey for money’s sake, but because we want what money offers us: nicer homes, nicer cars, access to better health services, or to better education systems, better quality of food without growing ourself the vegetables, fruits etc., the possibility to make ourselves more attractive, vacations, other ideals, such as vacantions, donating, working on personal projects, maybe more free time if you have passive income while you benefit from all of the above etc. It really is about what the individual wants in life. If these are things which do not interest you, then by all means, you can live in a tent etc. I’ve learned that there are 2 types of people that do this: they either like the lifestyle, or they are simply lazy and don’t want to work too much. I doubt your grandmother would be happy if she lived in a tent or that the guy living in a tent would be unhappy if he were rich.

[@Sonyoooo3]

And candy plavor don't last long like money. Thats why buisnessman is to gain many people that pay less and in long/permanent term so the plavor can last longer .

[@j.d.4697]

Not many people are numerate?! Oh god, it's worse than I thought...

[@JediMik]

2:11 это же главная ошибка большинства инвесторов! (и даже осознавая её, что можно сделать?! мы же люди))))

[@RationalProMax]

great advice..

[@Sonyoooo3]

But many buisness people are becoming greedy that pushes them to trow-up the candy out again and gain nothing to the end. But the candy cannot shallow back to there mouth because the candy is dirt y

[@CaptainKanuk42]

That's only true if the rate of inflation is faster than the interest on your savings account. I don't believe that's the case.

[@relbinhas]

That is ridiculous. The Stock Market is no pyramid system. In fact if you even knew a little bit about the stock exchange, you would know it's actually a positive sum game. What that means is that it is a game where when accounting for all agent's profits and losses, the profits exceed the losses. Overall, people are winning money at the stock market. Of course in recession times it always looks like everyone is losing, but if you take care to look at the bigger picture, well, economies do grow.

[@chinaman1023]

so your saying you dont know how the stock market works...?

[@giganticbrittle]

Rest in peace dear man 😢

[@1madaboutguitar]

Are you living in current day reality, just curious?

[@bocainla26]

Qué grande señor Kanheman, lo vengo siguiendo por más de un año ya.

[@GlobalWarmingSkeptic]

Actually, there is a very easy way to deal with this, and this is actually a lesson God gave to people who wrote parts of the Bible. Essentially, God says that one should never save or plan for the future and to live in the circumstances of the moment. Just as much as we have trouble saving money, we also have trouble living in the moment, which is what God intended. If you life in the moment, you will never regret anything because you just take life as it comes at you as opposed to planning.

[@nanocss]

Agreed!

[@quickdrawMMX]

Do a quick search on the channel, I'm sure this isn't the first time I've seen him here.

[@mesh-ensan]

Big thing

[@grend5224]

You good bless you

[@ParaglidingManiac]

I almost fell asleep listening to this. I can't understand what happened, love this channel!

[@Yjunaine]

You mainly speak about the skill of logical thinking. So why don't you teach people instead of only naming it?

[@TheHipHopSamurai1]

Think more broadly

[@giovannifoulmouth7205]

far from spam, if you like the khan academy you're always in the right

[@shadowjagossj8476]

Microsoft and Sony,making bad decision :1pay online stupid idea :2 EA access ripped off

[@lucianasipisicul]

wow, I am so far off from this, it's actually funny :)

[@joe-y4o5y]

Thomas Sowell has said the same thing more succinctly,

[@Sonyoooo3]

Money is like a candy it gives you all kinds of plavor that a person desire.

[@Beer_Dad1975]

Politicians should watch this video, then the global economy might not be in the shitter.

[@platoscavealum902]

👍👍👍

[@EggleHegel]

If you didn't understand his message I'm going to infer you'll probably be in debt for a large portion of your life.

[@GlobalWarmingSkeptic]

What do you say to the people who lost their entire life savings because of a few corrupt bankers in 2008? Did doing the supposedly smart thing help them? Nope. If you live your life like money is a possession, it will consume you. This is why the poorest places can be some of the happiest places. I've lived poor and I've lived pretty wealthy, and I can say from experience that the current set of circumstances is meaningless to how content you are. Contentment is a state of mind.

[@mad0314]

I regret reading your comment because it made me regret things in my life...

[@shisenkrieg]

look at me! look at me!

[@slathas]

Yeah I actually didn't get it either, maybe it's because english is not my mother tongue or I'm just to stupid.....

[@pranjayarora8115]

70₹ AAVE 2020-2021(65000 TIMES HIGHEST RETURN AMONG ALL CRYPTO- PAST ♦♣♥♠HISTORY FUTURE REPETITION DESIRE )

[@sageblack5717]

I don't think your concept of regret is completely accurate. Regret is saying I should/n't have done that. For one to grow like you depict they have to remove that way of thinking therefore removing regret altogether = a new person that is not regretful.

[@yoursubconscious]

I just bought a new Mac Air. Is this a sign? 😕🤣

[@thomaslieven680]

bet this dude is rich

[@BrunDodge]

Test

[@jmac217x]

I got this guy's book :D

[@TheStarman70]

Bad troll needs to repeat grammar school. :3

[@ThePoignantViews]

no way. first? i hate people who do this.

[@boleroinferno]

So he's basically making Plato's argument that "he who knows good, does good". Kahneman herein makes the same mistake as he immediately mentions: viewing a single problem out of context. The 'problem' of making decisions is a problem which is deliberately and persistently exacerbated by the organization of our society: subliminal advertising leads to irrational consumption leads to increased profits, which are vital components of capitalism. Irrationality is ensured by our social organization.

[@theizzman]

OMG THAT ADAMS APPLE

[@HooorayForJenna]

LOL Me too, unfortunately

[@lowereastsideastrologist7769]

Kahneman is the king of Cognitive showboating

[@relbinhas]

Economies grow because corporations (public or private) grow. Corporations in modern economies are essentially composed of stocks. Millions of stocks that are traded gazillions of times in the stock market. As corporations gain value, so do their common stock. Thus overall people are winning at the stock market. Of course less skilled people will lose money even in expansion times, and even more in recession. You should learn stuff before you say things that put you in a ridiculous situation.

[@Bobby.Kristensen]

He thinks toooo big! ;)

[@arthur78]

The nose hair is distracting me from what he's saying... I shouldn't be watching this in HD.

[@iInTerPreTeR]

He looks like how Patrick stewart should look

[@liberty1981]

Poor dude wasted his whole life studying this nonsense ⏳️➡️🕳

[@hungryghost502]

Or you become a mooch and a bum and live off other peoples taxes and handouts. How many people sleeping in cardboard boxes do you think have no regrets?

[@hatemkhrouf8955]

We need subtitles , i fell asleep at 10secs.

[@keen2461]

+Korewakore Sorewasore: There are hundreds of other videos here on you tube that will suit your IQ. This one is obviously out of your league.

[@seanwebb605]

Turn on the CC.