LOADED: Money, psychology, and how to get ahead without leaving your values behind

by Sarah Newcomb

"LOADED is that rare resource which somehow captures both theoretical and practical wisdom about money, personality, and life. Your views – and actions – with money will be much improved after reading the wonderful advice in LOADED."

- James Grubman, PhD. Author of Strangers in Paradise: How Families Adapt to Wealth Across Generations and co-author of Cross Cultures: How Global Families Negotiate Change Across Generations

Deeply researched, yet written in an approachable, conversational tone, this book offers insight into how the reader's personal experiences have shaped their financial attitudes, and how they can have a healthier relationship with their own money. The book first examines the roots and consequences of core money beliefs and then presents a practical budgeting method that blends economics with psychology to create a healthy and sustainable money management method.

Worksheets and personal money psychology assessments supplement the text.

Genres: Finance, Psychology, Money, Nonfiction, Personal Finance, Self Help, Economics

208 pages, Hardcover

First published April 25, 2016

About the author

Dr. Sarah Newcomb is an expert in the psychology of financial decision-making. As a behavioral economist at Morningstar, she works to integrate behavioral science into financial management applications. Ms. Newcomb holds a Ph.D. in Behavioral Economics, a Master's degree in Financial Economics, and a Master's Certification in Personal Financial Planning. Through speaking, writing, and product development, she aims to translate the findings from scholarly research into practical and useful tools for everyone. She lives with her daughter in Washington, DC.

Reviews

[Rae · Rating 4 out of 5]

First up, just want to say how much I enjoy reading books about finance written by women. I generally feel like they are more rooted in real life experiences and written to be more easily understood and actioned upon. However, they also can tend towards rah rah, inspirational, girl you've got this, pseudo-psychological content that I don't personally find super helpful.

I really appreciated Loaded, because it is the first serious, scientific look at the psychology I've seen in a book that also provides practical, tactical advice for personal finance.

The first half of the book does a quick but compelling review of studies about how the ways we think and feel about money impact the way we interact with it. Lots of super interesting content, but written to be easily digestable and with practical ideas for ways to change your own thinking if needed.

In the second half, Newcomb introduces her approach to budgeting. I found her method super interesting - her connection of Maslow's hierarchy of needs to the things we spend our money on was an entirely new idea for me.

The thing I liked most about this book is that I feel like there are the things to be learned from it, regardless of where you are at with your personal finances. One of the most interesting facts in the book was about how families talk about money - in a study quoted in the book, only 17% of wealthy parents talk to their children about finances. Even the rich have a strong chance of not understanding how they got there or how to keep what they've made or inherited.

So I recommend this book to basically everyone. We all can benefit from increased financial knowledge, and I think understanding that we are all approaching money from unique psychological circumstances is hugely beneficial.

[Kathleen · Rating 4 out of 5]

This book was mostly not intended for someone in my financial situation, but the takeaways from the first section made up for it. It was very enlightening to consider my "financial narrative" and core beliefs surrounding money, reflecting on who most influenced those beliefs. I found that I have very conflicting views. My mom's example taught me that money is a useful tool for enriching one's life through travel and experiences (even if you have to cut back in other areas). I also somehow ended up with the subconscious belief that you can either care about people or you can care about money, but not both. So I think my main belief (flawed as it is) is that money is good and useful up to a point, beyond which it becomes greed. No wonder I get a stomachache when I think about increasing my budget.

[Evie · Rating 5 out of 5]

this was so helpful!!!!

[Kristen · Rating 4 out of 5]

Here's to a totally different look at money, one you won't find in practically any other finance gurus' books. Instead of giving you a prescription of what to do with your money, Newcomb has us look at WHY we spend our money the way we do. How has your upbringing shaped how you view money?

I really loved the approach of emotional needs. We hear all the time about wants vs. needs in finance discussions, but the "needs" category seems to be inevitably small - I mean, what's REALLY a need? It turns out we have emotional needs we are choosing to fill by spending money on certain things. Instead of beating yourself up over why you can't stick to your budget, Newcomb asks you to consider what emotional need those things you just can't give up are really meeting for you. Then ask yourself, could I be meeting those needs in a non-monetary way?

So this isn't a book that will give you a clear direction on what to do; there are plenty of other books for that. But I found myself bringing up this book quite a bit with people I knew and had some fascinating conversations as a result. It was an insightful process for me to go through.

[HP CRAFFORD · Rating 5 out of 5]

Loaded, is a rear find. Brilliant written and practical to the point. Sarah shares a fresh approach on how our value system and how our beliefs influence our attitude towards money. The most important part is, however, how through a systematic approach she also shares the tools on how to start and grow your wealth. This book goes straight to my favorite and useful bookshelf. It will be one of that resources that I will read again and refer back too, to embody the learning to share with other.

[Dawn · Rating 5 out of 5]

Very informative on the psychology of money. The first half was background and examples. The later half had actions and assessments. I heard about this on an early episode of the "HerMoney with Jean Chatzky".

[Michael Carlin · Rating 5 out of 5]

Loaded is the kind of core Financial book that people who are looking to gain a greater understanding of what money means should read right away. It is thoughtful and well-balanced. Sarah offers a new spin on a lot of typical concepts that often deal with how to envision our financial future. I think it's written for everyone of all experience levels and ages. Personally I've been in the investment advisory world for over two decades. This is exactly the kind of book that I wish all of my clients would have read before they made it to my office.

[Esther · Rating 3 out of 5]

Works for my company and found a copy of this in the office during a recent clear out. This was good on the psychology behind our wants, why we really buy things and how to replicate that want in different ways and not do without. Aligned with dieting makes you fat, budgeting and deprivation also can lead to more financial problems. Interesting.

[Tam Evans · Rating 4 out of 5]

A different view on psychology of one's personal financial strategies or, as the author noted, personal economy. Expands on the 'cash flow' budgeting concept (money in, money out) to incorporate needs and resources (economics), and assets and liabilities (accounting). Shifts ones' view to a much broader horizon of all that encompasses our financial journey,

[James Belcher · Rating 5 out of 5]

Real stories from real people--rich, poor, and in-between--illustrate how feelings about money affect our finances. If you're anxious about money (even just thinking about it), read this book. #2019Resolutions

[Khairul Bashar · Rating 4 out of 5]

It is a good blend of money management (not investment management), psychology and philosophy. The writer has done a good job in linking money management with our behavioral aspects as humans. It is a light read, however, certain sections of the books are worth reflecting in life.

[Mark Noizumi · Rating 4 out of 5]

I thought Newcomb had a lot of interesting insights into money and psychology in the first part of the book. The actual budgeting part wasn't as interesting for me. Also, things like explaining how credit works were a bit too basic.

[Arlee · Rating 4 out of 5]

Written clearly and in a digestible way. Spurs one to consider where they stand in the financial world and how they need to change for the betterment of their own financial life.

[BookBec · Rating 3 out of 5]

My favorite part was Chapter 2, prompting readers to think in new ways to identify their foundational beliefs about money. Wish I'd read this years ago!

[Rayfes Mondal · Rating 4 out of 5]

For people who are having trouble taking that first step of spending less than you make. Don't do a budget in the cash flow sense. Some deeper thoughts about wants and needs

[Jasneed · Rating 5 out of 5]

This book gives great perspective on money such as how people think of it and what needs drive spending.

[Spencer · Rating 5 out of 5]

Very good financial book. Type of book I was looking for. Going to buy my own copy and use the exercises provided

[Jess · Rating 5 out of 5]

I really liked the different perspective to money this book brings. It's not just another book with "tips" for how to cut your spending, which isn't helpful to me. It's more about examining the whole picture of your finances and the purpose for them. Instead of thinking about needs vs. wants, Newcomb wants us to think about needs vs. strategies. Every thing you spend money on fulfills a need, but it may not be the best strategy to get what you want either short-term or long-term. The first section of the book is more academic than practical, which I also enjoyed. Great ideas and well written!

[pexfa · Rating 3 out of 5]

Fantastic book that delves deep into some of our assumptions/hidden scripts that inform our relationship with money. The exercises were particularly helpful for me to uncover ways of thinking that were affecting my relationship to money that I wasn't even aware of. Once I realised this I was able to reassess my beliefs about money and the negative assumptions I had unwittingly developed over the course of life. There is also a fresh approach to budgeting which I really appreciate

[Don · Rating 4 out of 5]

Loved this book! I'm amazed at how emotional money is and I love how that recognition and understanding is absolutely empowering. This book gives several ways to look at how you personally experience money and it's place in your life. Fantastic!