Your Money & Your Brain - Final Advice

Zweig ends YM&YB with the following:

T ake a global view

H ope for the best, expect the worst. Learn market history to help avoid panicking in bad times.

I Investigate, then invest.

N ever say always. No matter how sure you are of an investment, don't invest more than 10%.

K now what you don't know. Find out if people pushing it are putting their money in it.

T he past is not a prologue. Don't buy an investment just because it has been going up.

W eigh what they say. Ask a forecaster for a complete history of all their predictions.

I f it sounds too good to be true it probably is.

C osts matter. if you aren't careful expenses and taxes can easily eat up 1/2 of your return.

E ggs go splat. Don't put all your eggs in one basket.

Sounds very simple. But if the people who invested with Bernie Madoff followed this advice, many would be BILLIONS richer today.

Your Money & Your Brain - Happiness

Studies show that having wealth does not make people happy. once you have enough to meet your basic needs, more money creates less happiness than one would think.

The human tendency to be envious can rule our lives. When we buy the smallest house in a nice neighborhood we will be less happy than having the biggest house in a neighborhood of smaller houses. This envy reflex helps us to work to survive and gives us hope for the future. But unless we control this urge we will chronically be unsatisfied. There will always be someone with more. This explains why people in rich countries are only as happy as those in some poorer countries. We are constantly comparing ourselves to the "Jones"

What is the secret to happiness:

Zweig explains that your memory looks for favorably on past events as time passes. This leads to a phenomenon where past experiences grow in value as your memory of it grows warmer. Contrast this with the acquisition of items (new car, kitchen, etc.) which depreciate in value to the owner over time. Experiences trump acquisitions.

He also states that the happiest people are those that spend less time alone and had more friends.

We need to enjoy our friends, family and experiences in order to have a happy fulfilled life. This sounds like classic cliche, but it is backed by scientific research.