You can almost hear the collective slaps to the head.
This recession has brought to light dumb money management practices, forcing just about all of us to confront our financial foibles.
Maybe, for instance, you’re one of the ones who panicked and sold during the market bottom. Or, you believed housing prices were guaranteed to rise.
The federal government is tapping behavioral economists — experts on why we humans make the money judgments we do — to help devise regulations so that people don’t take on unaffordable mortgages and to help them understand their actual credit card fees.
But these efforts just scratch the surface. Here are four common mistakes that surfaced during this economic turmoil, and fixes that we can put in place to prevent ourselves from making the same costly error again:
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April 21st, 2010 at 7:38 am
This whole article is dead on, and it seems like basic education and planning could help you avoid bad situations. Why sign for a loan without reading the fine print? It doesnt make any sense and consumers should have realized that before the economy tanked. When investing in the market for retirement, americans should see this as a long term thing and not freak out when the market tanks. I know its hard to look at your monthly statements and see nothing but losses, but remember, you have time for it to rebound (at least most people do).
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