Why Highly Intelligent People Often Make Terrible Money Decisions

Consider two wildly different people: one a Harvard-trained executive, the other a janitor who spent most of his life fixing cars and sweeping floors. On paper, it's obvious who'd 'win' at money. But when the executive, pulled by insecurity and ego, began showing off his wealth—and making impulsive, outsized bets—he ended up broke. Meanwhile, the janitor, acting with quiet restraint and patience, passed away with millions in the bank, giving most away to charity.

Deep in a high-end hotel, you could hear laughter when expensive gold coins were skipped off the dock into the ocean, just for the thrill of it. A few years later, the same voices would go silent, fortunes erased by a single crisis. By contrast, the janitor’s old friends only learned of his wealth after his death. His story was never about dazzling intelligence or market timing, but about small, repeatable behaviors—saving a little every month, never being swayed by bravado, and keeping steady through market storms.

Behavioral science teaches us this is no fluke. Financial outcomes attach more tightly to our ability to manage impulses, resist envy, and avoid crowd-induced errors than to intellect or formal education. The mind is easily misled by pride, fear, and quick wins, but those who cultivate a few behavioral disciplines—and build guardrails to catch themselves when they slip—stand the best chance at long-term security.

Start by simply noticing how you feel the next time money’s on your mind—maybe anxious at the checkout counter or tempted to brag. Don’t judge those emotions, but use that awareness to set specific rules for future decisions, like capping spending or taking a pause. If in doubt, talk your decision through with someone whose experience or world-view differs from yours; often they’ll spot things you can’t see. Practicing these small steps might not feel dramatic, but over time they’ll add up to lasting change. Give yourself permission to trade a little smarts for steady habits and see what happens in your finances this month.