We all think we know what makes us happy, until we realize that studies show that humans are terrible at figuring out what makes us happy. Enter consumer regret, doubt, and adaptation to make sure our happiness is worse after we spend money than it was before. Surely, there must be a way to spend money that will make us happy. Right?
Politicians, media, and advertisers use the framing effect every day to their advantage. Without you even knowing it. I am here to tell you that the bias imposed by the framing effect has a major impact on your financial decisions, too. Come learn how to stop doing dumb things with your money in the first post of the behavioral finance series (BFS #1).
Have you ever wondered why people tend to make so many financial mistakes? We spend too much, save too little, and constantly serve as our own worst enemies. There is a reason for all of this, and a way that we can defeat it. Welcome to The Behavioral Finance Series where we will make you better with your decision making, your money, and even being a better doctor.