Financial decisions
Self-Serving Bias
Recognizing the tendency to credit personal strategies for gains and blame external factors for losses helps in making more balanced and informed financial choices.
Loss Aversion
Understanding loss aversion can help you make more rational investment choices and avoid emotional decision-making based on potential losses.
10-10-10 Rule
When deciding whether to make a large purchase, consider the impact on your finances in the short term, medium term, and long term.
Similar Situations
Ikigai
Financial planning: Considering your Ikigai can help you make more thoughtful financial decisions that align with your values and long-term goals.
Framing Effect
Making financial decisions: Being aware of the framing effect can help you avoid being swayed by how financial options are presented.
Flea In a Jar
Financial Recovery After Debt: Poor financial decisions don’t define your future. Learning and discipline can build a new path.
The Barber Paradox
Personal finance: Making sound financial decisions using logical reasoning and assessment of risk and reward.
Cynefin Framework
Managing personal finances: Determine the appropriate level of financial knowledge and expertise needed to make sound decisions.
Bandwagon Effect
Investment decisions: Understanding the bandwagon effect can help you make more rational financial choices, avoiding the temptation to jump on trending investments without thorough research.
Clustering Bias/Illusion
Financial investments: Recognizing clustering bias can help you make more informed investment decisions, without assuming that a series of gains or losses indicates a trend.
Confirmation Bias
Making financial decisions: Understanding confirmation bias can help you avoid relying solely on information that supports your existing beliefs about investments.
Correlation-Causation Fallacy
Financial investments: Understanding the correlation-causation fallacy can help you make better investment decisions by not assuming that a correlation between two variables necessarily implies a causal relationship.
Sunk Cost Fallacy
Financial investments: Understanding the sunk cost fallacy can help you make more rational investment decisions, letting go of poorly performing assets without being influenced by prior investments.