Financial investments
Sunk Cost Fallacy
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.
Clustering Bias/Illusion
Recognizing clustering bias can help you make more informed investment decisions, without assuming that a series of gains or losses indicates a trend.
Correlation-Causation Fallacy
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.
Decoy Effect
Knowing the decoy effect can help you make better investment decisions, by evaluating opportunities based on their merits rather than the presence of less attractive alternatives.
Similar Situations
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.
SWOT Analysis
Financial Planning: Individuals can conduct a SWOT analysis to assess their financial situation, including strengths (stable income), weaknesses (high debt), opportunities (investment options), and threats (economic downturn).
Sorites Paradox
Financial planning: Analyzing the relationships between income, expenses, and investments to create a balanced budget.
The Ship of Theseus
Financial planning: Analyzing the relationships between income, expenses, and investments to create a balanced budget.
Confirmation Bias
Making financial decisions: Understanding confirmation bias can help you avoid relying solely on information that supports your existing beliefs about investments.
Big Five Personality Traits
Risk Assessment: Recognizing personality traits associated with risk-taking can inform decision-making in situations such as financial investments or adventurous activities.
Loss Aversion
Financial decisions: Understanding loss aversion can help you make more rational investment choices and avoid emotional decision-making based on potential losses.
Kubler-Ross Curve
Financial setbacks: Navigating the emotional stages of dealing with unexpected financial challenges.
Ishikawa Diagram
Financial performance analysis: By using Ishikawa Diagrams to identify the root causes of poor financial performance, organizations can take steps to improve financial outcomes.
Ikigai
Financial planning: Considering your Ikigai can help you make more thoughtful financial decisions that align with your values and long-term goals.