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We often make irrational financial choices from "summary" of A psicologia financeira by Morgan Housel
Our brains are not wired to be perfect when it comes to making financial decisions. In fact, we often make choices that go against our best interests. This is because our decisions are influenced by a variety of psychological factors that can lead us astray. One of the main reasons for our irrational financial choices is the presence of cognitive biases. These biases are mental shortcuts that our brains take in order to process information quickly. However, these shortcuts can often result in errors in judgment. For example, we may suffer from confirmation bias, where we seek out information that confirms our existing beliefs and ignore anything that contradicts them. A...
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