Dr. Robert Brooks at NASHRM

Posted Jun 10, 2010 | Robert C. Mayes

On Tuesday, June 8, Dr. Robert Brooks addressed the North Alabama Society of Human Resource Management with a one-hour lecture concerning techniques for improving personal financial management. Dr. Brooks premised his talk by establishing that any amount of sound financial advice is useless for an individual unless it is first compatible with the individual’s worldview. For Dr. Brooks, given that individuals’ conception of the world has the capacity to affect real change in the marketplace (a phenomenon that was termed “performativity” in his talk), and given that there naturally exists a degree of ebb and flow in societal value systems, finance should be studied as a social science rather than a physical science. The practical application of this understanding of finance, in the eyes of Dr. Brooks, is that the prudent investor and money manager will recognize that the future does not always resemble the past; indeed, in the words of Nassim Taleb, “History teaches us that things that never happened before do happen.”

Dr. Brooks concluded his address by enumerating several key insights into improving personal financial decision-making. He urged the audience to avoid credit binges by containing their yearnings within their earnings. Dr. Brooks also stressed the importance of seeking sound financial counsel as well as carefully selecting financial advisors whose incentive structures are aligned with those of their clients. The number one key to improving financial decision-making on Dr. Brooks’ list was, “learn to be content”; this advice stems from the assertion that it is often not the level of income that determines one’s financial success, but rather one’s liabilities and spending habits.

Download the NASHRM Presentation