Benjamin Felix May 9, 2022 Behavioural Finance Finding and Funding a Good Life Is a higher paying job with longer hours worth it? How should you prioritize saving for the futureagainst enjoying life today? Should you rent or own your home? Does it make sense to pay for ahouse cleaner? Is it better to live in a bigger home with a longer commute, or a small home close tothe office? Is going out to dinner a waste of money? Is an expensive vehicle worth it? The answers to these questions are often delivered to us on a platter by our System One brains; ourfast, intuitive, impulsive, and emotional thought processes that run automatically with relatively littleeffort. Unfortunately, our automatic, intuitive perception of the right answer is oftenflawed. Our automatic system brain is designed to seek pleasure, avoid pain, engage in survival relatedbehaviours, and impress other people; the automatic brain has its finger on the dopaminebutton and cares more about prestige than happiness. The objective of this paper is to provide an overview of the non-financial considerations thatdeserve consideration in financial decisions – tools for System Two financial decision-making. Eachconsideration is paired with reflective questions that the decision-maker may ask themselves or theother parties involved in the decision-making process. Financial decisions are never objectively goodor bad; each decision should be considered for its utilitarian, emotional, and expressive benefits,and its impact on living a good life. There is a lot more to a good life than wealth accumulationand risk-adjusted returns. A good life is, of course, subjective, but research across economics andpsychology provide a starting point. Framing financial decisions through the lens of living a good life,measured by life satisfaction, rather than dollars in your bank account or other material possessions,is likely to lead to better outcomes. Discover or download the complete White Paper below. 2023-05-02_PWL_WP_Felix_Finding_and_Funding_Good_LifeFinalDownload Share: Facebook Twitter LinkedIn Email IIROC AdvisorReport
James Dickey 9:59am June 5th, 2022 Reply Ben and Cameron, you’ve had and continue to have a huge positive impact on my family’s life. I discovered your podcast through the YouTube videos and I’ve listened to pretty much all of the podcasts. The amount of work you do to learn, summarize and deliver top quality information (for free!) is incredible. On behalf of my family, thank you for all that you do.