“The best way to predict the future is to create it”
(credited to Abraham Lincoln and Peter Drucker)
Predicting Your Financial Future
By Michael Velazquez
Can you predict the future? I suspect most of you reading this would say no. For those that would say yes, perhaps you need some therapy (humor intended).
What if I asked you: “do you feel connected to your financial future?” Behavioral finance, like any young science or field of knowledge, is a work in progress. It is now moving into its second generation and attracting bright young minds furthering our collective cause in this space. Two such individuals at Kansas State University have just published a study that suggests we might be able to predict our financial future, or at least impact it depending on our ability to visualize our future financial self. The more vividly we can imagine our future financial self, or the more connected we are to that mental model, and the related details of financial goals, the more we influence behavioral changes that will make it more likely we will accomplish those goals.