This Element is an excerpt from Living Rich by Spending Smart: How to Get More of What You Really Want (ISBN: 9780132350099) by Gregory Karp. Available in print and digital formats.

Smart people, dumb spending: how to overcome the behaviors and habits that are undermining your financial security.

Are you spending your money on purpose, or by accident and habit? Ultimately, your current financial situation is the sum result of the many money decisions you make every day. Make more good decisions than bad, and you’ll be comfortable. Too many bad decisions? You’ll struggle. Dumb spending doesn’t stem from lack of knowledge. It’s born of behavior....