Guest Post at Mustard Seed Money {Heuristics}

Today, Rob over at Mustard Seed Money was gracious enough to feature my guest post. 

The theme of the post is heuristics. A heuristic is a shortcut or process for a person to discover or learn something themselves. 

It also discusses the biases and flawed ways we try to analyze the world around us, especially in regard to investing. I hope that it makes you think about the way you interpret the world, the information around you and how you apply that information to the decisions you make. 



Here is an excerpt from the article:

Heuristics can be applied to financial decisions and the way that we invest our money.  For instance, look at each generation.  The greatest generation lived through a depression and fought a world war. They watched as their family and friends couldn’t find work and then had to go fight. They left their families to take care of the home and hope for their return. Their outlook on investing in the stock market was a low priority. They viewed the market as a dangerous place.

After the Greatest Generation returned and started having children, the Baby Boomers were born. When they entered their careers, it was the start of the greatest bull market of all times. They were excited and optimistic to invest in the stock market. They see it as a wealth building tool.

The gen-X-ers come after the boomers. The gen-X-ers got their start investing right at the tech bubble burst. Then they rode out a lost decade and finished it with a housing collapse. As you can imagine the X-ers are skeptical. They saw the greed and competition of their parents lead to a Great Recession and anemic market returns.

The Millennials are just now starting their careers and the older members had their first taste of investing during the Great Recession market collapse.  The are hesitant and fearful of another market event that would squash their meager savings at this point. Unfortunately, so many of them are hamstrung by debt that the thought of investing only exists in a fairytale land.

The reality is that the market remained a great vehicle to accumulate wealth throughout all of these generations. With dividend reinvested and continued contributions, any person in each generation could grow wealth through buying stock.


Head on over to and add a comment. Then come back here and comment below.

Start tracking your expenses, deposits, and investments with Personal Capital. It’s a great way to keep track of all your accounts in one easy platform. I use it to track my investment returns and overall net worth. Just click the link to the right and start your account today. The best part is it’s all free. There is nothing else on the market today that is as powerful and easy to use. 


Tom is a doctor, husband and father of five with a passion for parenting and finance. When he isn't skateboarding, riding BMX, or jumping on the trampoline with his kids, he is reading and writing about personal finance. He helps high income parents educate and mentor their kids to become financially, emotionally, and intellectually self sufficient.

2 Responses to “Guest Post at Mustard Seed Money {Heuristics}

  • I read your post on Mr. Mustard Seed Money’s blog this past weekend and thought it was well written: a bit philosophical but helpful. Keep up the great work!

    • Thanks for reading.
      I sometimes tip over a little too much into the philosophical ideas. Thanks for bearing with me but I do think the ideas and our biases are a good thing to think about before we invest.

Follow on Feedly