Business How To Avoid Making Bad Financial Decisions

How To Avoid Making Bad Financial Decisions


Recently Kevin Price, Host of the nationally syndicated Price of Business Show, welcomed David Lewis to provide another commentary in a series.

The David Lewis Commentaries

In the 1950s, Stanley Milgram did a series of experiments to see whether normal people like you and me would hurt, and even kill, other innocent people. The results were… shocking.

The Milgram shock experiments are well-known now, and they provide valuable insight into human psychology. What you might not realize, however, is that these experiments might be a valuable addition to your existing financial education. Some of the ideas, concepts, and principles discovered by these experiments can be used to help you think more independently, and can even be useful in teaching yourself how to make better financial decisions.

Today, many individuals follow the advice of some financial guru, to the point where they will say and do anything to defend their guru… even when the guru is demonstrably wrong. This follower mindset is detrimental to your financial well-being, even if the financial guru happens to be right. Reason being, by following others, instead of thinking for yourself, you’re not truly learning anything. You gain no valuable skills. You merely parrot what someone else does or, worse, blindly follow someone else’s advice. When things go right, you don’t notice it. But when things eventually go wrong, you’re both helpless and defenseless. And the financial fallout can be huge.

Today’s commentary explains how to use Milgram’s experiments to avoid making bad financial decisions and instead become more financially independent.


David has been a licensed life insurance agent since 2004. In addition to life insurance design and sales, he has also helped develop educational and marketing content for large financial firms like Allstate, New York Life, State Farm, AmTrust, and J.G. Wentworth. His articles and essays on life insurance and Human Life Value are currently taught at California State University (CSU) as part of its Expository Writing and Reading Course, and his articles on budgeting, life insurance, investing, and financial planning have been featured in online publications like ThinkAdvisorThe Huffington PostNuWire Investor, and RealClearMarkets. David is also the author of several short eBooks on budgeting and saving money, and the designer of the xFlow™ budgeting app and the xCalc™ suite of financial calculators.

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