People have a hard time forecasting the future about themselves. By that I mean we aren’t very good at predicting our future states of mind. The problem is that we often have to make decisions today that hinge on our ability to correctly forecast our future feelings….
Forewarned is Forearmed
(Mental) Time is Money
How Biases Affect Retirement Savings
I’m a firm believer in how our ability to recognize and understand the biases that motivate us goes a long way in helping to modify, or stop, potentially bad behavior. This is especially interesting to me when it comes to behaviors associated with our personal finances. A recent article posted by Bloomberg highlighted 2 that are extremely detrimental to the health of your retirement savings: Present Bias and Exponential-Growth Bias. The former puts your present wants above your potential future needs; the latter is a failure to realize how a dollar today grows over time....