Is you brain to blame for low bank balances? Behavioral finance attempts to study how your behavior helps (or more often hurts) your financial situation. For example, plenty of people have enough money in savings to pay off credit card balances -- but they don't. Why? A form of "Mental Accounting" is to blame. To get some ideas on how your behavior is affecting your finances, consider reading Why Smart People Make Big Money Mistakes-And How to Correct Them (Compare Prices). The author presents a down-to-earth approach to doing the right things. You can listen to an interview with co-author Gary Belsky online.
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