Most of us want goals to shoot for, but all too often we pick the wrong ones.
Earlier this month, Adam Nash, the chief executive of Wealthfront, explained the strange way this tends to happen at work. In a Corner Office column, he told my colleague Adam Bryant that if workplace leaders don’t identify specific metrics to focus on, smart people will just make up their own. And because these employees are intelligent and persuasive, they’ll quickly convince themselves that their objective is the most sensible one.
Wealthfront helps people invest their money in a more rational fashion than they might if they were left to their own devices. So I couldn’t help but wonder about a corollary to Mr. Nash’s point: Are there metrics that we cling to in our financial lives that end up being wildly counterproductive? And if so, what should we be replacing them with?
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