Insights provided by behavioural finance for personal finance strategy creation The WritePass Journal

Insights provided by behavioural finance for personal finance strategy creation Abstract Insights provided by behavioural finance for personal finance strategy creation ).   With clear success in defining and removing behavioural impediments, many investors are looking to this field of research for potential edges in determining future strategy. Conclusion Behavioural finance is argued to provide substantial impact on personal finance and personal   planning and the results of this essay support that contention. Despite the desire for a black and white investment environment, there is no escaping the impact that inherent bias, shortcoming and basic human error play on the implementation of an effective investment scheme. The material presented illustrates the potential for personal bias based on such base elements as the food consumed prior to making decisions, yet, the process of identification has the potential to offset the negative and enhance the positive. Further, intuition has been credited with propelling many investors to success, yet, this is separate from the decision making process that allows for the creation of bias and the inclusion of errant material. A clear benefit to the implementation of a personal financial strategy is knowledge of the elements that make up the field of behavioural finance, allowing the creation of an effective process to offset any negative pattern of investment behaviour.   In the end, as with all manner of investments, it comes to discipline, skill, patience and the determination of the investor to not be swayed in the face of adversity but hold to the reality of any situation. References Baker, H. and Nofsinger, J. (2010).  Behavioural finance. 1st ed. Hoboken, N.J.: Wiley. Baker, M. and Wurgler, J. (2011). Behavioural corporate finance: Wiley. Banerjee, A. (2011). Application of Behavioural Finance in Investment Decisions: An Overview.  The Management Accountant, 46(10). Benartzi, S. (2010). Behavioural Finance in Action. Allianz 1(1) p. 3-6. Brigham, E. and Ehrhardt, M. (2005).  Financial management. 1st ed. Mason, Ohio: Thomson/South-Western. Deaves, R. and Charupat, N (2005). Behavioural Finance. Journal of Personal Finance 1(1). P. 48-53. DeBondt, W., Forbes, W., Hamalainen, P. and Muradoglu, Y. (2010). What can behavioural finance teach us about finance?.  Qualitative Research in Financial Markets, 2(1), pp.2936. Forbes, W. (2009).  Behavioural finance. 1st ed. New York: Wiley. Hens, T. and Bachmann, K. (2008).  Behavioural finance for private banking. 1st ed. Chichester, England: John Wiley Sons. McAuley, I (2009). Understanding human behaviour in financial decision making. Centre for Policy Development 1(1). p. 1-5. Meier, S. (2010). Insights from Behavioural Economics for Personal Finance. Behavioural Economics and Personal Finance 1(1). p. 1-3 Montier, J. (2007).  Behavioural investing. 1st ed. Chichester, England: John Wiley Sons. Muradoglu, G. and Harvey, N. (2012). Behavioural finance: the role of psychological factors in financial decisions.  Review of Behavioral Finance, 4(2), pp.68-80. Paramasivan, C. and Subramanian, T. (2009).  Financial management. 1st ed. New Delhi: New Age International (P) Ltd., Publishers. Pompian, M. (2006).  Behavioural finance and wealth management. 1st ed. Hoboken, N.J.: Wiley. Redhead, K. (2008).  Personal finance and investments. 1st ed. London [u.a.]: Routledge. Sewell, M. (2007). Behavioural finance.  University of Cambridge. UK Subrahmanyam, A. (2008). Behavioural finance: A review and synthesis.  European Financial Management, 14(1), pp.1229.