Financial decisions are influenced by our psychological biases from "summary" of Dhan-Sampatti Ka Manovigyan (The Psychology of Money - Hindi) by मॉर्गन हाउज़ल
Financial decisions often appear to be rational and logical, based on a careful analysis of facts and figures. However, beneath the surface, our psychological biases play a significant role in shaping our financial choices. These biases are deeply ingrained in our minds and can lead us to make decisions that may not always be in our best interest. One common bias that affects our financial decisions is overconfidence. Many of us tend to believe that we are better than average at making investment decisions or managing money. This overconfidence can lead us to take excessive risks or ignore important information that contradicts our beliefs. As a result, we may end up making poor financial choices that could have been avoided. Another bias that influences our financial decisions is loss aversion. We tend to feel the pain of losses more strongly than the pleasure of gains. This can lead us to avoid taking necessary risks or selling invest...
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