Awareness of biases can improve financial decisions from "summary" of The New Psychology of Money by Adrian Furnham
When it comes to making financial decisions, our minds can play tricks on us. We are often influenced by biases that lead us astray and prevent us from making rational choices. These biases can stem from various sources, such as our upbringing, cultural background, or personal experiences. They can cloud our judgment and cause us to overlook important information or make decisions based on faulty assumptions. However, by becoming aware of these biases, we can take steps to mitigate their impact and improve our financial decision-making. This awareness involves recognizing the existence of biases, understanding how they can affect our thinking, and actively working to counteract them. It requires a willingness to question our assumptions, seek out alternative perspectives, and consider the potential consequences of our choices. One com...
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