3 life-changing financial lessons I learned from personal finance authors

  • I host an podcast called The Rewired Soul and have interviewed some of the top personal finance authors.
  • Daniel Crosby taught me that being right doesn’t make you smart, and Nick Maggioli showed me that buying a home can take luck.
  • Brian Feroldi helped me see that no single person–not even Elon Musk–affects the stock price.

The public school system didn’t teach me anything about financial literacy, nor did my lower-middle-class parents. Fortunately, I am a very curious person who loves to read, and at the age of 35, I decided that I would learn more about investing, saving, and being smart with my money. I’ve read dozens of books on personal finance to educate myself, and I’ve been fortunate enough to speak with some of the authors on my podcast, reconnected soul.

Daniel Crosby, Nick Maggioli, and Brian Feroldi have taught me a lot through their great books, but I’ve learned more from being able to talk to them in person. Here are three of the biggest financial lessons I learned from these personal finance experts.

1. Being right does not make you smart

From a young age, we have all been taught to “trust our intuition” and to follow our intuition. As someone who has made a lot of terrible decisions based on my intuition, I have first-hand experience of why this advice is terrible.

When I attended Daniel Crosby on the podcast to discuss his book, “Wealth Laws“I learned more of the science behind why our intuition regularly fails. Most importantly, I learned why our ego prevents us from finding out sooner.

Crosby specializes in behavioral finance, which takes a look at our irrational behaviors when it comes to money. He holds a PhD in Psychology and explained how our thinking is often flawed. This is why we buy high and sell low when investing even though we know we should do the opposite. This is also why we think we can predict the markets or not recognize the signs of a bubble.

I asked Crosby Why are we so oblivious to these mistakes that we make on a regular basis while investing.

I learned that one of our biggest problems is that we highlight our gains and make excuses for our losses.

When we’re right, it’s because we’re genius, but when we’re wrong, it’s just bad luck. For behavioral finance experts like Crosby, the results aren’t the most important. The decision-making process is the most important.

If you ran across the highway and survived, it wouldn’t make a good decision. Likewise, if you dump a lot of money into a bad stock, and because of random factors, it doubles in price, that doesn’t mean it was smart to do so.

Taking a step back and evaluating my investment decision making process helped me create good investing habits as well as other financial decisions.

2. It can take a little luck to buy a house

I wasn’t familiar with Nick Maggiulli, but when his new book came out, I was hooked up with him in about a day. “Just keep buying“Teach me a lot because Maggiulli challenges conventional wisdom with data. The book taught me why having debt on a credit card isn’t always a bad thing, and why you might not want to go over the 401(k) cap. When it came on the podcastI wanted to ask him a little more about the idea that millennials like me are in a more difficult position than previous generations.

I’m a single dad working insanely through the pressure of many side businesses, and have only recently started making over $60,000 a year. My girlfriend just finished her postgraduate studies in social work, so she won’t make much money either. The The housing market in Las Vegas, where we live, is out of controland I don’t see how they save 20% for A


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realistic. The average home cost in Vegas is more than $430,000, so we’d need to save $86,000. And that’s if prices don’t go up by the time we’re saving a lot.

While chatting with Maggiulli, I asked him if something was missing as this didn’t seem to come in handy. Maggioli is a big believer in finding ways to increase your income, and I am too, but he acknowledges that it may take some luck in this housing market.

Without an incredible job opportunity, inheritance, or other significant financial gain, he told me it would be difficult to buy a home unless the market changed soon.

He lives in New York, and rent is very normal there. Now, I think renting for the foreseeable future might be the most realistic option for us as well.

3. Not a single person affects the stock

We’re even in the middle of the year, and there’s no shortage of public outrage and controversy associated with stocks. There have been viral accounts of how Joe Rogan caused Spotify’s stock price to fall or that Elon Musk’s acquisition of Twitter sent Tesla stock down. I was skeptical of these accounts but wasn’t sure.

Brian Feroldi just released his book, “Why is the stock market rising?“So I thought he would be the best person to ask when I do that meet him in the podcast.

When I asked him his thoughts on these news stories, he shut them down very quickly. He explained that we have to look at the market as a whole. By doing this, we see if only one share price is down or the entire market.

The stock market has been bad for most of 2022, so in the days when these stocks were low, so were most other stocks. Thanks to Feroldi, I know it’s not a good idea to believe these accounts of one person crashing an arrow – and I know it’s especially important that I don’t make decisions based on these accounts.

I’m still early in my financial journey, so I still have a lot to learn. I am so fortunate to be able to speak to and learn firsthand from some of these experts, and I can’t wait to discover more ways to improve my financial future.