Building Wealth: How to make small changes for BIG financial rewards

Every week The Money Show interviews the author or reviewer of a new or trending business book.

This week Bruce Whitfield takes a look at the latest book by personal finance expert Warren Ingram, a regular contributor to the show.

Small Changes for Big Results is all about improving your finances by taking a step-by-step approach.

It's co-authored by consulting psychologist Dr. Marc Rogatschnig, who explains how the collaboration came about.

"Ingram's prior three books had done particularly well, and he'd been wondering what to do for a fourth book... He approached me to give some inputs on how he could make financial advice more psychologically sound."

"While I don't know much this, I thought 'let's break it down', and in the end we decided this was really a book around behaviour change and some of the fundamentals beneath that."

"It isn't a new topic, but I think one of the challenges we put ourselves is, how do we help people understand this one thing more easily: When we know we have access to huge amounts of information and to sound financial advice... why do some people with all good intentions to make some changes in their financial habits, seem to undo some of their progress quite quickly?"

"This book explores some of the unknowns, some of the aspects of your upbringing that have shaped some of the needs and wants that you have, which may influence some of the choices you make that could be working against the known world of great financial advice."

"So, there is a battle and in most cases the unknown, or the unconscious, wins."

"The book's a chance to 'level the battlefield' and give people an opportunity - in a very structured way - to work out what is likely to trip them up as they start descending down the hill to battle their financial challenges and opportunities."

Dr. Marc Rogatschnig, Consulting Psychologist  

Description by Penguin:

We all make plans, set goals and enthusiastically imagine a better future. Unfortunately, most people never achieve their goals, whether they be personal or financial. Just like health goals, wealth goals have a material impact on people’s lives.

There is no shortage of good advice, personal finance books and well-worn practices, so the question is: Why can’t people change? We know what to do, but then inexplicably don’t seem to do it. What keeps tripping us up? Many of our money troubles are caused by behavioural traps that keep us locked in a cycle.
 
For some people, this means underspending, even though they have enough money. For others, it is the habit of overspending, even when it causes emotional and financial harm to loved ones. Both of these are deep-seated emotional drivers that can make people feel trapped in a vicious cycle.

Small Changes for Big Results  provides clear, actionable steps that anyone can follow to take control of their finances and free themselves from these traps. The book contains real-life case studies of people who overcame financial difficulties and highlights the small steps they took to change the course of their lives. No matter what your income level or financial background, this book is tailored to help everyone. Lasting change begins with small, consistent actions, and this book equips you with the tools and knowledge to make these incremental changes that will yield big results over time.

Scroll up to the audio player to listen to the conversation (skip to 51:18)