Ever fall for temptation and do things with money that feel good but ultimately backfire? Panicking and selling stock when the market tanks leads to lost capital, or buying when materials are more expensive? May seem counter-intuitive, yet this is exactly what many do with their life savings on a regular basis. These behaviors are referred to collectively as "dumb money" on Wall Street and are explored in Carl Richards' novel, The Behavior Gap.

What can we do to alter this disparaging scenario? Act based on knowledge, not feelings. There may be many simple solutions to your financial woes that are simply not easy. For instance, holding onto stocks when everyone is scared and wants to sell is simple, but not easy. Hold your ground and keep your eyes on your long-term financial and life goals. Do not "play" the stock market when you get bored; instead, avail yourself of the more financially healthy option of engaging in a past time. You can also hire a financial planner, and do not forget about the financial impact on your life of earning and saving more of your dollars. If you abstain from rash spending and plan properly, you will have money to spend on what is important to you.

The Behavior Gap: Simple Ways To Stop Doing Dumb Things With Money by Carl Richards, 2002

• Books about financial planning
• Carl Richards' website