What Is Framing Effect And How To Avoid It
Decision making, especially financial decision making, requires a lot of mental energy to be effective. Which is why the brain often relies on heuristics to lighten the load. The catch is that this can,...
Tagged: heuristics
Choice Overload, What Is It And How To Avoid It
Choice overload is a kind of bias in human behaviour that affects our decision making, like all heuristics and biases do. Understanding why biased behaviour happens can help you minimise the effect on your...
Availability Heuristic, What Is It And How To Avoid It
Previously I wrote about heuristics and biases, what they are and why they matter when it comes to finances. There are many different ones that have been recognized, and today I want to focus on...
Anchoring Bias, What Is It And How To Avoid It
Anchoring bias, like the name suggests, is an example of heuristics and biases, which I previously wrote about. It is important to understand how they affect your decision making process to avoid making bad...
Why People Make Bad Financial Decisions And How To Avoid Them
Have you ever wondered how we humans make decisions? Especially those bad financial decisions that you end up regretting for a long time afterwards. Often we don’t think about these decision long enough to...
