15 Cognitive Biases That Mess With Your Money

On the surface, money seems straightforward. What could be more black and white than numbers?

But in fact, money is complicated. Nothing makes this clearer than looking at the ways in which we’re subject to cognitive biases — the way our brains sneakily convince us to make decisions that often work against our best interests.

Cognitive biases may convince us to spend more, save less, and feel more confident in our decisions than perhaps we should. And the scary thing is, for the most part, we’re powerless against them.

Here’s a look at some of the most common ones.

Overconfidence

Steven Dubner, one of the authors of 'Think Like A Freak,' says that the best thing investors can do for their money is to admit what they don't know.

Apparently, many of us have a problem with that, and base financial decisions on expertise we don't actually have.

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