Scarcity Bias

No, I am not referring to that 1998 action movie with Tia Carrere.  More to situations where you spend a month researching the best flat screen TV, then invested twice as much money in a penny stock based solely on a hot…

Continue reading

Optimism

People tend to be optimistic about the future and that is not a bad thing in general.  However, this optimism might easily develop into “wishful thinking”. Too much “wishful thinking” will be harmful to your money.  You might be awful at managing your money when…

Continue reading

Hedonic Treadmill

What kind of treadmill is that?  You say, “I know only the treadmills from Horizon, Epic, and  Lifespan.” Like so many of us, I am quite sure that you have spent some time on the Hedonic Treadmill. The Hedonic Treadmill is one that some people are constantly running…

Continue reading

Bias from envy and jealousy

Back in 1995, researchers from Harvard asked students/staff which they preferred: Earning $50,000 a year when everyone else around them makes $25,000. Earning $100,000 a year when everyone else around them makes $200,000. Prices of goods and services would be…

Continue reading