Why is it that we often ignore hard data and go with our gut when making a decision? It's especially true when it comes to estimating the probability of something. Are our brains just really mediocre when it comes to numbers or is there a reason for our misguided instincts?
Tagged With cognitive biases
If managing money were as easy as crunching some numbers and following a spending plan, we'd all be awesome at it. Money isn't hard because of the maths, it's the psychology that trips us up. Our brains often work against us when it comes to financial decisions, but if you recognise these cognitive biases, you can overcome them.