Will your personality make you rich? Why money could be in the mind

6th June 2011

The report, Risk and Rules: The Role of Control in Financial Decision Making, was commissioned by Barclays Wealth and was based on a survey of 400 high-net-worth individuals in the UK and more than 2,000 across the globe.

Most of those who took part in the survey reckoned that having rules and strategies made their financial decisions more effective.

Having them appeared to provide increased financial satisfaction.

The group which used financial strategies the most reported a 13% boost in financial satisfaction and a 12% boost in wealth, compared with those who used financial strategies the least.

The report shows that UK respondents use many types of decision-making strategies to control their decision-making process, and use rules more in financial decision making (83%) than they do in everyday life (62%).

The most popular include waiting before executing a financial decision (90%) and setting deadlines (87%).

Another key finding of the report was that a third of wealthy individuals in the UK wish they had more self control over their financial behaviour.

Surprisingly those with more than £10m in wealth top the list of those desiring more financial discipline.

The report found that "emotional" trading can cost investors nearly 20% in returns over a ten-year period.  

However, high-net worth Brits are less keen to exert more self-control over their behaviour than other nationalities.

Some 86% of wealthy individuals in Taiwan and 70% in Hong Kong wish they could be more disciplined with their financial behaviour.

Leave a Reply

Your email address will not be published. Required fields are marked *