Your long-held math anxiety may be the reason why you’re delaying your financial plan. To ease the tension and reduce “financial planning anxiety”, we’re going to gamify the process. In high school, my blood pressure would rise for this dreaded anticipation of math time. What made it worse were the math teachers who had the […]
The Endowment Effect is a rapid test that can show you how much you value your ego. Really. A famous, well-replicated social experiment has shown this. If you receive a mug for free and someone asks you how much are you willing to sell it for, you are most likely to price the mug at
Monopoly® is, undoubtedly, one of the most iconic modern board games of all time. The game involves 2-8 players with 16 Community Chest Cards, a pack of Monopoly money, 32 Green Houses, 12 Red Hotels, 8 Tokens, 28 Property cards, 16 Chances, 1 Speed Die, and 2 Dice. Basically, you win the game by collecting
Six Surprising Behavioral Lessons from the Game of MonopolyRead More »
The human behavior that prefers one to avoid loss rather than make a gain is a phenomenon called Loss Aversion, Loss Aversion is easy enough to prove in real life. With a little experimentation, you can prove it by yourself. Pick up a deck of playing cards and a couple of coins (or, more preferably,
The daily scenery of the lottery line is a simple manifestation of our tendency to avoid a loss: a ticket that could land you an exponentially inflated reward, without paying too much to get into the contest. The thing is, we live to possess, and if we lose the things we own, the sting of
I’ve always been a student of history and have a high regard with historians. I believe there’s always beauty in looking at things with their historical backdrop. And I find this useful to improve my comprehension of difficult and boring subjects. So, on that account, math has a history. Someone invented accounting, not just out
For me, and I guess for many of you, it is difficult to know how exactly can one be motivated to save money. Do I save money for the long term (for future protection), for investments (to earn from interest rates), or for bigger savings to get a whole lot more investments and insurances? At
Three Crazy, Peculiar (But True) Things About Saving MoneyRead More »
Find the job that you love and you will never work a day in your life – Mark Twain Are you tired of working? Have you lost your powers of creativity? Somewhere along the way, we lose the motivation to work due to a myriad of things, due to office politics, lack of pay, change
We’ve been talking about saving money and trying to defeat your emotional urges to spend money while you can if you can. But we’re just human aren’t we? Chances are we would always be controlled by emotions. There’s always a chance emotion will get the better of you. No matter how many tips I give
The consumer market works to condition your brain to think that by buying stuff, you would be solving your emotional and personal problems. But we all know that this doesn’t provide real solutions—it just adds whiskey. By buying stuff, we just want to feel good temporarily. There’s nothing wrong with this, of course. We all
Taken together, money and spending are pretty influential subjective concepts. Ever noticed that when you’re shopping, your emotions get the better of you? Your shopping could very well beat the hell out of your logical reasoning cold. This happens when you can’t stop the urge of using little plastic cards to purchase some things that
In finance and investments, emotion is a dangerous creature. It’s cute, furry, cuddly, but feed it after midnight, it turns into a Gremlin. With emotion, we’ve tagged the one thing that salespeople use to lure you in. The same thing goes with advertisements. Ads pepper you with lots of images and sound designed to trigger
Finance 101: Needs, Wants, Sizzles, Steaks, and GremlinsRead More »
You often hear that long term saving requires discipline and commitment. Just a bunch of words that conveniently sum up the idea. But be warned, you may have been duped by the understatement of the year. Yes, long term savings needs your discipline and commitment. But if you’re planning for your children’s education and retirement,
