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
Predicting the future is near impossible -- but that doesn‘t stop us all from having a red hot go. Human beings have been predicting the future since the beginning of history and the results range from the hilarious to the downright uncanny.
One thing all future predictions have in common: they‘re rooted in our current understanding of how the world works. It‘s difficult to escape that mindset. We have no idea how technology will evolve, so our ideas are connected to the technology of today.
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.