Mind your biases from "summary" of The Dumb Things Smart People Do with Their Money by Jill Schlesinger
Our brains are incredible machines, capable of processing vast amounts of information in a short amount of time. But they are also flawed, prone to biases that can lead us astray when it comes to making decisions about money. One of the most common biases we face is confirmation bias, the tendency to seek out information that confirms our existing beliefs while ignoring evidence that contradicts them. This can lead us to make poor financial choices based on faulty assumptions. Another common bias is overconfidence, the belief that we are smarter or luckier than the average person when it comes to investing or other financial matters. This can lead us to take on too much risk in our portfolios, leading to potentially disastrous consequences if the market turns against us. Then there is anchoring bias, the tendency to rely too heavily on the first piece of information we receive when making decisions. This can lead us to make poor choices based on outdated or irrelevant information, rather than ta...
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