Behavioral finance is a fresh hypothesis in the finance theory. It aims at understanding and forestalling the psychosomatic decision-making of private investors and the repercussions of such decisions on the financial market. It fails to substitute but compliments the existing theories of finance and investment (Tyson, 2012). The task looks at psychological investment decisions and financial planning of individuals.
The paper seeks to provide clear information regarding the insight that behavioral finance aspects provide in personal finance in addition to financial planning. So as to do this, I will explore behavioral finance. Then I will discuss the components of behavioral finance. Finally, I will give a conclusion regarding the topic.
