Behavioral Finance - Emotions that Drive Our Financial Decisions

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In episode 143 of Financially Simple, Justin looks at the various types of bias that people can have with regard to Personal Finance.

Hardly anyone is truly rational when it comes to money and investments, their emotions and the opinions of others can have an effect on how a person chooses to spend or save. Justin lists 19 different types of Bias that can influence us in our financial decisions.

TRANSCRIPT/BLOG: How Money Biases Affect the Way You Spend, Save, & Invest Money

TIME INDEX:

00:45 - Behavioral Finance

04:12 - Money Biases

05:04 - Affinity Bias

06:02 - Anchor Bias

07:14 - Bandwagon Bias

08:04 - Confirmation Bias

09:01 - Endowment Bias

09:46 - Familiarity Bias

10:15 - Framing Bias

10:43 - Hindsight Bias

11:10 - Illusion of Control Bias

11:50 - Loss Aversion Bias

12:29 - Mental Accounting Bias

13:06 - Outcome Bias

13:24 - Overconfidence Bias

14:21 - Recency Bias

15:22 - Representative Bias

16:10 - Self-Attribution Bias

17:17 - Self-Control Bias

18:15 - Status Quo Bias

18:35 - Trend-Chasing Bias

19:47 - Identify Your Biases

20:58 - Wrap Up

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DISCLAIMER:

The Financially Simple podcast provides information, guidance, and support to Small Businesses in the United States. Host Justin Goodbread is a serial entrepreneur, CFP (Certified Financial Planner), CEPA (Certified Exit Planning Advisor), CVGA (Certified Value Growth Advisor), Investopedia Top 100 advisor, and business strategist with over 20 years of experience. Justin owns Heritage Investors LLC, a registered investment adviser with the State of Tennessee. Heritage Investors only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. This material is for general information only and is not intended to provide specific advice or recommendations for individuals. To determine what is appropriate for you, please consult a qualified professional.

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