The biases behind money decisions

Eight common thinking and feeling traps. Which ones sound like you?

For educational purposes only. Simplified illustrations to help you understand how things work. Not financial, investment or tax advice, and not a recommendation.

Everyone has these. Slide each one to how often it sounds like you.

Thinking traps

AnchoringStuck on an old number, like the price you paid.

Rarely meOften me

ConfirmationNoticing only what agrees with you.

Rarely meOften me

RecencyExpecting what just happened to keep happening.

Rarely meOften me

OverconfidenceOverrating your ability to predict.

Rarely meOften me

Feeling traps

Loss aversionLosses feel about twice as painful as equal gains feel good.

Rarely meOften me

Regret aversionAvoiding decisions so you can't feel wrong later.

Rarely meOften me

Status quoSticking with the current setup because change feels hard.

Rarely meOften me

Herding / FOMODoing what everyone else is doing.

Rarely meOften me

Clear-headed

Decisions are mostly being made on the merits.

Your strongest pull

Move the sliders to find it.

A self-reflection exercise, not an assessment.

Thinking traps improve with better information
Feeling traps need rules and routines
Knowing your strongest pull is half the battle

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