The nature of our minds is to believe that we have all the information that is relevant and important to a decision even when we don’t. As it turns out, making good financial choices is a lot about the story we tell ourselves.
The nature of our minds is to believe that we have all the information that is relevant and important to a decision even when we don’t. This thinking error, or cognitive bias, is referred to by Kahneman as “What You See Is All There Is” and it can lead to partially unfounded beliefs and less than optimal financial choices. Consider these examples:When we want to keep up with the lifestyle of our peers, we might spend money we don’t have.
There are countless ways that seeing only part of the picture can negatively influence our decision-making but unfortunately, we can’t simply rewire our brains to see its blind spots. What we can do is be mindful of what we pay attention to and what we share with others.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Danger In What You Think You Know About MoneyThe nature of our minds is to believe that we have all the information that is relevant and important to a decision even when we don’t. As it turns out, making good financial choices is a lot about the story we tell ourselves.
Read more »
Survey: What Consumers Overseas Want From Streaming ServicesNew VIP+ Analysis: Think it’s good to have international versions of SVODs be overwhelmingly filled with localized content? Think again.
Read more »
Target, Staples, Barnes & Noble and more offer back-to-school discounts for teachersTarget, Staples, Barnes & Noble and more offer back-to-school discounts for teachers. Here are some of the retailers offering special deals now for teachers.
Read more »
It’s The Poor Left To Pay Their Tax Debts, Not Rich CheatsMaybe Congress doesn’t mind dropping money for better IRS enforcement because of who would be targeted.
Read more »
A Truly Bonkers Conversation Between Lisa Kudrow and Lily TomlinHappy Birthday, LisaKudrow! Below, revisit her conversation with LilyTomlin where the comedic legends discuss everything from antibodies to Friends.
Read more »
My girlfriend cosigned my mortgage. I paid the mortgage for 4 years, plus a $125,000 down payment. She paid the utilities. Now she wants half‘I think I snookered myself. Please help.’
Read more »