November 18, 2009 by Kathy Kristof
Brad Klontz knows all about the dumb things that smart people do with their money: He’s a smart guy (with a doctorate in psychology) who lost half of his assets in the technology stock bubble.
A financial psychologist, Klontz says that when it comes to money smarts, size matters: The logical part of your brain is so much smaller than the emotional side that it’s like “a circus performer riding an elephant.” To make smart decisions about your finances, you need the logical side to dominate. But once you get tweaked by greed or fear, that elephantine emotional brain is likely to run amok.
