Why Smart People Make Terrible Money Decisions (Psychology of Money)

Some of the worst money decisions in history weren’t made by “stupid” people. They were made by Harvard grads, CEOs, and experts who knew the math—and still went broke. So what’s going on? In this episode of Moments of Money, we break down a powerful idea from Morgan Housel’s The Psychology of Money: financial success isn’t a hard science—it’s a soft skill. Meaning: money isn’t mainly about spreadsheets, IQ, or knowing the “right” strategy… it’s about behavior—especially when emotions show up (and they always do). In this video, you’ll learn: Why intelligence doesn’t protect you from financial failure The truth behind “No One’s Crazy” and how life experience shapes money decisions How smart people don’t avoid bias… they often justify it better The dangerous illusion of control (and why luck + risk matter more than we admit) Why high-achievers get trapped chasing “more” because they never define “enough” The real money skills that build lasting wealth: self-control, humility, patience, emotional awareness The biggest takeaway: Money punishes ego more than ignorance. Being smart helps you learn strategies—but only behavior keeps you wealthy. If this changes the way you think about money, welcome to Moments of Money.