Role of behavioral finance in wealth management during 2008 post recession

The wave of hyper consumerism that propelled the world economy in developed nations and in emerging markets such as Brazil, Russia, India and china through the first years of 21^st century has passed. Say good-bye to all the signs of easy wealth we knew from the past- expensive cars, buying big houses on a monthly mortgage, recreational shopping. Consumer spending is changing as part of a trend that has been quickly gathering over the past 2 years since the onset of 2008 recession. People are returning to old-fashioned values to build new lives of purpose and connection. They are ready to spend money on things that are necessary for their present lifestyle- i.e conservative approach in spending money. This is a sharp reaction to economic hard times- 2008 recession that has shocked the whole world. In this research paper, I am looking at the role of behavioral finance in wealth creation and the impact of 2008 recession on the consumer behavior from a wealth management perspective. Wealth creation is always good for the common man and as well for the country. The way wealth is created has a big difference during pre-recession and post-recession periods. There has been a dramatic change in how people create wealth. How they make the choices, how they look at their financial goals in a short term and long term reach and how they look at economy will determine the wealth creation of the consumer.