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Psychology of Money

Managing money well is not so much about how much we know, but more about how we behave. Learning about the psychology of money can provide you with valuable insights into your behavior around finances. Understanding and modifying those behaviors can help you set yourself on a path of financial success.

Latest Articles

11 mins read

What Daniel Kahneman Thinks Investors Should Know

Daniel Kahneman gives a great breakdown of 6 cognitive biases and illusions that affect both our everyday lives and our investing success.

Read More
The Ultimate List of Cognitive Biases

The Ultimate List of Cognitive Biases

14 mins read
Cognitive Biases You Need to Understand to Master Your Money

9 Cognitive Biases You Need to Understand to Master Your Money

21 mins read
Beginner's Guide to Logical Fallacies

Beginner’s Guide to Logical Fallacies (With Examples)

L:ogical fallacies are reasoning errors that weaken your argument. Learn what fallacies are and how understanding them can benefit you.

Best Behavioral Finance Books

10+ Best Behavioral Finance Books to Read

Behavioral finance books help understand the impact of psychology on financial decisions. Check out the top titles.

False Dilemma (Logical Fallacy)

False Dilemma (Logical Fallacy): Definition and Examples

A false dilemma occurs when a limited number of choices, outcomes, or views are presented as the only possibilities.

Money Scripts

Money Scripts: Understanding Your Relationship With Money

9 mins read
No True Scotsman Fallacy

No True Scotsman Fallacy – Definition and Examples

4 mins read
Ad Hominem

Ad Hominem: When Personal Attacks Become Fallacious

Ad hominem fallacy is based on personal and irrelevant attacks against the source of an argument instead of addressing the argument itself.

Tu Quoque Fallacy

Tu Quoque Fallacy – Definition and Examples

Tu quoque fallacy occurs when someone's argument is discredited solely based on the allegation that their past actions or words are not consistent with their views.

What Is The Loaded Question Fallacy?

What Is The Loaded Question Fallacy? Definition and Examples

The loaded question fallacy is a question containing an implicit assumption - that is unverified or controversial.

Circular Reasoning

Circular Reasoning: Definition and Examples

Circular reasoning is a logical fallacy in which a person attempts to prove something using circular logic.

The Psychological Factors Affecting Our Financial Decisions

The Psychological Factors Affecting Our Financial Decisions

20 mins read
The Role of Family and Culture in Personal Finance

The Role of Family and Culture in Personal Finance: Navigating Different Values and Beliefs

10 mins read
The Sunk Cost Fallacy

The Sunk Cost Fallacy And How It Can Ruin Your Decisions

Sunk cost fallacy is a cognitive bias that causes people to include non-recoverable past costs in their decision-making process.

Anchoring

Anchoring: How We Cling to the First Piece of Information

Anchoring is a cognitive bias that describes the human tendency to overly rely on the first piece of information we find or is offered to us.

Loss Aversion

Loss Aversion: How We Fear Losses More Than Value Gains

Loss aversion is a cognitive bias, or a systematic pattern of thinking, that refers to our natural inclination to focus on setbacks more than progress.

Dunning-Kruger Effect

Dunning-Kruger Effect: How Low-Skilled People Overestimate Their Own Abilities

The Dunning-Kruger effect is a bias whereby people with low ability in a certain area tend to overestimate their capability in that area.

Logical Fallacy vs Cognitive Bias

Logical Fallacy vs Cognitive Bias – What Is The Difference Between Them?

Even though both fallacies and biases are very different from each other, they are both typically concerned with the same issues - errors in reasoning.

Red Herring Fallacy

Red Herring Fallacy: Definition and Examples

The red herring is an attempt to divert the attention away from the relevant issue by introducing another irrelevant issue.

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