Ep. 227 – Paul Fenner – Why Behavior Beats Spreadsheets
Have you ever wondered why two families with nearly identical financial situations can end up in completely different places?
It's not because the math was wrong, but because of how they responded when it mattered. Today, I am digging into why financial success has less to do with what we know and more to do with what we actually do when we're staring down competing priorities.
I walk through two real client situations in which both families had solid plans but were facing trade-offs among mortgage payoff, 529 contributions, retirement investing, and home upgrades. Same numbers, different behavior. One family saw flexibility as freedom, the other saw debt elimination as emotional relief.
I also explore how our sense of security, fear of missing out, and guilt about not doing enough for our kids quietly drive the financial decisions we think are purely logical, and why Morgan Housel's idea that optimism is about perseverance, not perfection, applies to how we parent and plan.
Your action step this week: pick one financial behavior that tends to trip you up and simply notice it. Don't judge it. Just observe because you can't improve what you can't see.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
Your portfolio runs on math, but your wealth runs on behavior. Two families with the same financial plan can end up in very different places based solely on how they respond to trade-offs and uncertainty.
1 Way You Can Apply This
Pick one financial behavior that consistently trips you up, whether it's second-guessing decisions, spreading yourself too thin, or avoiding hard choices, and just observe it this week without judgment.
1 Question to Ask
When I'm making a financial decision, am I responding to the numbers or to how the numbers make me feel?
Resources Featured in This Episode:
Rethinking the Relationship Between Money and Happiness
Inflated Expectations: The Hidden Force Undermining Financial Peace