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4 ways to trick your brain and build your wealth. Sadly, our brains aren’t wired to make us rich.

4 ways to trick your brain and build your wealth

Thanks to evolutionary quirks in how we view the world and make decisions, behavioral economists tell us we often do exactly the wrong thing when it comes to money and accruing long-term wealth (such as with our savings accounts, our retirement accounts and sticking with budgets). Don’t despair, though. There are plenty of ways to either short-circuit our mental foibles or even use them to our advantage so we can still come out rich. Here are four mental patterns that make us poorer — and how to overcome them. Mental Pattern: Hyperbolic Discounting Simply put, we prefer short-term satisfaction over long-term gain. Overcome It: 1. 2. Mental Pattern: Mental Accounting We tend to value, and treat, sums of money differently depending on where the money comes from and where it’s kept. 1. 2. 3.

Mental Pattern: Status Quo Bias 1. 2. 3. Mental Pattern: Loss Aversion We hate losing roughly twice as much as we love gaining. 1. 2. Big cities trade happiness for money: survey shows. If you’re feeling unhappy with the daily grind of city life, you’re not alone.

Big cities trade happiness for money: survey shows

In fact, residents across some of America’s largest cities - including New York - are feeling the same way according to a new survey. A new research paper, published using data from the National Bureau for Economic Research (NBER) and co-authored by Harvard Kennedy School Professor Edward Glaeser, is shedding light on the nation’s unhappiest - and happiest - cities. Residents of bigger cities, like New York, are trading happiness for wages and higher levels of satisfaction, according to the study. In fact, the paper came to the conclusion that the unhappiest cities are willingly choosing to be less happy in exchange for higher incomes or lower housing costs. They are choosing money over happiness. The study showed the most unhappy cities in the country: 1. The unhappiness survey study took into account NBER data combined with a 2010 U.S. What about the happiest places? 1. Warren Buffett on When to Sell a Stock — BRK-A, BRK-B — Investing Daily.

With the stock market off to its best start since 1987, stocks may have gotten ahead of themselves and look primed for a correction to begin any day now.

Warren Buffett on When to Sell a Stock — BRK-A, BRK-B — Investing Daily

Crystal-ball gazers predicting a stock-market crash include John Hussman and Joe Granville. Consequently, perhaps we should take a look at our portfolios with the aim of raising some cash and analyze which stocks are candidates to be sold? This begs the question of how one decides which stocks should be sold. Our Investing Daily investment experts have already provided some guidance on this question in a previous advisor roundtable. It’s a good read; I highly recommend it. Selling Lessons from the Sage of In “An Owner’s Manual,” distributed to Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholders in 1996, Buffett wrote: “Indefinitely” is a long time. We continue to make more money when snoring than when active. … [Y]ou simply want to acquire, at a sensible price, a business with excellent economics and able, honest management. 7 Costly Car Rental Mistakes to Avoid.

As Americans hit the road this summer, many will drive rental cars in other parts of the country or the world.

7 Costly Car Rental Mistakes to Avoid

While rental cars can be convenient, the associated costs are often confusing. Here's a look at car rental mistakes that could cost you money -- and how to avoid them. 1. Buying extra insurance you don't need. If you have your own auto insurance policy, it may cover collision damage and personal liability for temporary use of a rental car (but likely not a moving truck). On the other hand, if you don't have your own auto policy or you're concerned about potential premium increases should you need to file a claim with your auto policy, the car rental company's insurance may make sense.

[Read: 5 Insurance-Buying Mistakes to Avoid.] 2. 3. If you're planning to drive long distances, check for mileage caps. 4. [See: 10 Unexpected Costs of Driving.] 5. 6. 7. [Read: The Hidden Costs of Rental Cars.] More From US News & World Report Transportation ServicesTransportationrental cars. How Warren Buffett Separates a Good Business From a Great One. They say there's more than one way to skin a cat, and the investing legend Warren Buffett would likely agree.

How Warren Buffett Separates a Good Business From a Great One

For decades, Buffett produced one market-beating performance after another at Berkshire Hathaway (NYSE: BRK-A ) (NYSE: BRK-B ) , but he took a variety of paths to get where he is today. At times, he relied on the virtuous economic characteristics of what he calls a "wonderful" business; in other instances, however, it was his operating managers alone who were responsible for Berkshire's profits. The year 1990 was a prime example of the latter scenario. In Buffett's letter to shareholders, he commended Berkshire's astute managers who delivered impressive results in spite of otherwise challenging industry economics: [O]ur return was not earned from industries, such as cigarettes or network television stations, possessing spectacular economics for all participating in them.

For investors, incidentally, there's more than one way to unpack this particular Buffett quote. Buy vs. Rent a Home: 3 Common Myths Busted. When weighing major life decisions, everyone seems to have the answer.

Buy vs. Rent a Home: 3 Common Myths Busted

You should marry this person, drive that car, and have so many kids—all by a certain age. Never mind if it’s actually the best choice for you! Home ownership is no different. Deciding whether to buy or rent always comes with a generous helping of opinion. So how do you separate fact from fiction? Let’s start by breaking down three common myths. Myth #1: Buying a home is the grown-up thing to do. Many folks look at home ownership as a rite of passage into adulthood.

During times of transition, renting for a year or two gives you time to get your feet on solid ground before making a life-changing decision. —You just graduated from college and aren’t ready to plant your roots in one place yet. —You moved to a new city and aren’t sure which neighborhood is right for you.

—You’re in the military and don’t want to lose money on a home every time you’re stationed in a new place. Wrong! —You’re out of debt. Buying a House - Money 101, Lesson 8 - Money Magazine. 1.

Buying a House - Money 101, Lesson 8 - Money Magazine

Don't buy if you can't stay put. If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition. 2. Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. 3. The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. 4. There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment. 5. In most areas, this advice applies even if you don't have school-age children. 6.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. 7. 8. 9. 10. 7 Power Tools of Persuasion. Just about all entrepreneurs have experienced that warm, tingly feeling when they realize they’ve hatched a brilliant idea that could change an industry, make a meaningful impact and land them a fortune Perhaps the only thing standing between concept and cashing in is the clarity and persuasiveness with which this idea is pitched.

7 Power Tools of Persuasion

Sadly, this is no small obstacle. In fact, roughly two-thirds of all pitched ideas that are rejected, are not dismissed because they are bad ideas.They die on the vine because they were presented poorly. For entrepreneurs, a lack of persuasiveness when rallying support for an idea can be as detrimental to a business as an embezzling CFO. Here are some skills that should be in every entrepreneur’s tool belt: 1. 2. Related: 5 Steps to Conquering Public-Speaking Anxiety 3. 4. Related: Making Sales Presentations 5. 6. 7. Don’t be so enamored with your own idea that you can’t spot its potential flaws.When challenged in the meeting, don’t get defensive. One-sentence financial rules. There are 56,956 personal finance books on Amazon.com. In aggregate, they contain more than 3 billion words.

This seems absurd, because 99% of personal finance can be summarized in nine words: Work a lot, spend a little, invest the difference. Master that, and the other 2.999 billion words are filler. The most important finance topics don't require details. Most can be, and should be, summarized in a sentence or two. Here are some I've learned. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. Add your own in the comment section below. Check back every Tuesday and Friday for Morgan Housel's columns on finance and economics. Cramer on Buffett: 'His luck's about to change' Jim Cramer is coming to Warren Buffett's defense.

Cramer on Buffett: 'His luck's about to change'

This headline in The New York Times caught Cramer's eye: "The Oracle of Omaha, lately looking a bit ordinary. " The story cited a new statistical study by Salil Mehta that compared Berkshire Hathaway's performance to the benchmark S&P 500 stock index. While Buffett's company has beaten the market in 38 of the past 48 years, it has underperformed the S&P in four of the past five years. Mehta calculates there's only a 3% chance Buffett is suffering through a period of bad luck. On Tuesday night's "Mad Money," Cramer shot back. Cramer believes that "just when it starts to seem like Buffett may have lost his touch, that's when his bets really start to pay off. " In addition, Cramer said the tide is turning on Wall Street. Here's his take on Berkshire's top 10 publicly disclosed U.S. stock holdings: Wells Fargo: The bank has a "truly fortress balance sheet. " American Express: "Who among us doesn't wish that we own this juggernaut.

" 6 Ways to Analyze Your Creative Ideas. Great marketers, PR pros, and content creators have one thing in common--they use both creativity and analytics to develop their successful ideas.

6 Ways to Analyze Your Creative Ideas

Christine Perkett dubbed this type of thinking as “Creatalitics” and gave an excellent definition for the term: “[Creatalitic thinkers] combine really creative and innovative ideas--those ‘dreams and visions’ with data and analysis--the ‘blazes of insight’ that tell them if their creations go beyond initial appeal and into the world of actionable value to the company’s bottom line.” Creativity is an important aspect of our jobs, but we should not neglect the warning signs from the left side of our brains pushing us to analyze our ideas.

Here are six ways to put your creative ideas to the test to make sure they are worth your client’s investment. 1. Google it. This simple test of researching your creative idea will tell you a lot about its future success. 2. Recent Articles From PR Daily 3. 4. 5. 6. This story originally appeared on PR Daily. 5 millionaire myths. Jaime Tardy, author of "Eventual Millionaire," spent more than three years interviewing over 130 millionaires from all walks of life to find out what makes them tick and what makes them different from us non-millionaire folks. She identified a few misconceptions most people have about millionaires -- that most are born into wealth or that they just got lucky. Here are five myths that may surprise you. Myth: Millionaires are smarter“One of the millionaires I interviewed actually got a note on his report card that he had all Cs and the teacher said that he was a daydreamer and wouldn’t make anything of himself.

So it doesn’t necessarily matter whether you’re book smart or not. A lot of people also have ADD and dyslexia that I’ve interviewed. Also See: Frugal Habits of the Millionaire Next Door Myth: Millionaires are just lucky“One of the great quotes that I love is 'the harder you work the luckier you get.' Also See: How I Save My Community Millions on Groceries. Fool. According to Warren Buffett, there are two simple and costly mistakes most of us make when managing our personal finances. Warren Buffett of Berkshire Hathaway is the third richest man on the planet, and knows a thing or two about success when it comes to money and investing. When he first took over Berkshire Hathaway in 1964, the book value of the company stood at US$19.

At the end of last year it was US$114,214 – a growth rate of 19.7% every year for 48 years! Similarly, US$19 placed in the S&P 500, an American stock market index, would’ve only grown to around US$1,400 over that same time period. He is a man whose wisdom should be trusted. On personal finances Buffett recently teamed up with Quicken Loans, a retail mortgage lender in the USA, to offer someone the chance to win US$1 billion for a perfect NCAA tournament bracket.

To digress a little, the NCAA tournament is a basketball tournament amongst college teams in the USA. A powerful example What we can learn. 7 Secrets Wealthy People Know about Amassing and Maintaining a Fortune. Becoming wealthy enough to keep the wolf from your door doesn't mean an end to unwanted callers. For every newly minted billionaire, there are cautionary tales of the well-heeled undone by visits from the the tax man, the loan officer and Uncle Sam himself. A fortune requires finesse. As well as a willingness to embrace financial exotica, trips to Bermuda and the drive to start your own business--as a survey of FORBES' knowledge of the world's wealthiest people reveals. Below are seven tricks, secrets and maneuvers regularly conducted by those with more than a shekel or two to accumulate and maintain their fortunes. [gallery2012 columns="1"] 1. Where does Brad Pitt put his multi-million-dollar paychecks?

They're certainly more than one-hit wonders. Alan Goldman, a Los Angeles business manager with a star-studded rolodex and client roster, says he's often left talking his crew out of pitches on the next trendy restaurant, instead advising more consistent investments, like MLPs. 2. 3. 4. 4 Mistakes to Avoid When Repaying Your Student Loans. Student loan defaults have surged this year, with the U.S. Department of Education reporting 6.8 million federal student loan borrowers failing to make payments. What does that mean for student-loan payers across the nation?

Most of you are doing it wrong. [More from Manilla.com: Personal Budgeting Tips ] And as the cost of higher education continues to rise, and the increasing amount of student loan debt threatens to push the economy past its breaking point, it’s more important than ever to know the mistakes before it is too late. Here are four mistakes to make sure you avoid. 1. [More from Manilla.com: The Best Credit Cards for 2013 College Students & Grads ] 2. 3.

[More from Manilla.com: 6 Areas Where Students May Be Overspending ] 4. More from Manilla.com: Buying a House - Money 101, Lesson 8 - Money Magazine. Living in His Car, Cramer Developed Investment Strategy. Don't Forget Why Value Investing Works (BRK-A, BRK-B, MKL) Money 101 - Financial Advice & Lessons Made Easy by CNNMoney.com. Big winners share lessons, risks of Powerball win. The 8 Most Important Facts To Know About A Company Before You Invest. A better way to pay off debt. 13 Ways Americans Throw Away Money. Austerity vs. Stimulus: Spain and China Provide Another Test of Competing Ideas. Ultimate guide to guys' suits. Velshi: Economic storm coming. 7 Weird Ways to Hurt Your Credit Score. The true cost of an iPhone.

5 Ways to Increase Your Net Worth with Employee Benefits. Fortune 500 Top 20. Why your personal brand matters. How the Richest 400 People in America Got So Rich. A Cheat Sheet on Tipping Do's and Don'ts. Meet the Money Manager Who Is Beating Berkshire Hathaway and Owns It Too. Nine Degrees That Put You on the Fast Track to $100K - Monster.com. Beat Bad Financial Habits to Boost Savings.

The National Debt and Federal Budget Deficit Deconstructed - Tony Robbins. The Top 10 Million Dollar Mistakes Made By Successful Entrepreneurs. 5 Keys To Financial Success. Advice From 100 Successful Entrepreneurs On Starting Your Own Business. Top 5 Tips for a Tiptop Credit Score. 5 Reasons You Don't Really Want to Win all that Lottery Money. 10 Things You Should Always Buy in Bulk.

12 Scary Debt Facts for 2012. How To Be A Millionaire. Chris Anderson of WIRED on tech's Long Tail.