Halo Effect

Halo Effect Bias

This post has nothing to do with Brexit, UK’s ego, or the unfairness in life that the older generation always decides on things the younger generation has to live with. But then, maybe it does … Let’s visit another continent…

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Neglect of prior base rates effect

tomorrow starts now; start an ETF savings plan

This is the tendency to fail to incorporate prior known probabilities which are pertinent to the decision at hand. Caution: Don’t read on if you are 40 years of age and above! Here’s an interesting question for the rest of you: Why aren’t more young people…

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Wanna be a trillionaire?

Sounds great, doesn’t it? And you would be the first on this planet, provided that you measure your wealth in the current USD, since I am quite certain that there would already be existent trillionaires when measured in Vietnamese Dong or Indonesian Rupiah. Trillions are flung around in the news nowadays to…

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Whatever you earn – live within your means

Now, that is a no-brainer! Others might even call this a “know-brainer”. Still, I know from personal experience that this principle is not easy to apply; nevertheless, it is worth your utmost attention as it is the key to growing your savings. People are always talking about character,…

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Decision Heuristics

Or why we adhere so strongly to our beliefs.   One culprit is what the rule of consistency describes: a powerful force that compels us to act in a way that is consistent with our past behavior (this rule is extensively…

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