Why We Don't Understand Money: How to fix your thinking flaws - [Cognitive Biases #3]

Why We Don't Understand Money: How to fix your thinking flaws - [Cognitive Biases #3]

Think you konw what you're doing with you money on your mind? Think again. You walk into a cinema and buy the $12 large popcorn because the medium is $10. You think you got a deal, but you actually just fell for the "Decoy Effect."Your brain is wired to latch onto the first number it sees. In this episode, I break down the psychological pricing traps that businesses use to hack your wallet. We also cover why Sir Isaac Newton lost his fortune to the Sunk Cost Fallacy and why having more information actually makes you a worse investor. It’s not about being smart; it’s about understanding the system. Key Takeaways: "Consider the Opposite" strategy: Mentally flip the price anchor to neutralize the urge to buy. Spot the Decoy: Identify products that exist solely to make expensive options look cheap. The 5-Point Rule: Stop researching after five data points to avoid the Information Bias trap. Listen now to stop your brain from leaking money on deals that aren't real. SPONSORS 👨‍💻 NordStellar Security across your business 20% off: BLACKFRIDAY-20 (valid before 10th Dec) 10% off: GROWTHMINDSET-10 ⁠⁠⁠⁠⁠⁠⁠⁠⁠nordstellar.com/growthmindset⁠⁠⁠⁠⁠⁠⁠⁠⁠ NEW SHOW - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠How to Change the World: The History and Future of Innovation⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Learn about the evolving story of the human species and our ideas told in chronological order. Spotify - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/1Fj3eFjEoAEKF5lWQxPJyT⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Apple - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/how-to-change-the-world-the-history-of-innovation/id1815282649⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ YouTube - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.youtube.com/@HowToChangeTheWorldPodcast⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ RSS feed - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://feeds.acast.com/public/shows/682b3b86696b5d1232d698a8⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ --- UPGRADE to ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Premium⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠: 🏖️ Ad-free listening 🤘 Support the show 🔓 Exclusive AMAs and bonus content 💬 Community Discord ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠GrowthMindset.Supercast.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Growth Mindset Psychology: Sam Webster explores the psychology of happiness, satisfaction, purpose, and growth through the lens of self-improvement. 📺 Watch - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠YouTube (Growth Mindset)⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ 🛜 Website - ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Growth Mindset⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ CHAPTERS 00:00 Money Traps - Financial Cognitive biases #2 02:49 The Opposite Strategy 08:01 Decoy Effect 10:44 Gambler's Fallacy 16:48 Sunk Cost Fallacy 19:24 Bad Prediction Flaws 19:59 Overconfidence Bias 21:33 Information Bias 25:43 Send Off Learn more about your ad choices. Visit podcastchoices.com/adchoices

Episoder(513)

The Weird Psychology of Communication, Self-control, and Gossip: What evolution teaches us about communicating your needs clearly

The Weird Psychology of Communication, Self-control, and Gossip: What evolution teaches us about communicating your needs clearly

In the noble quest to understand our minds, today we take a new angle. We track how grunts turned into gossip, myths, and the weird human habit of blushing when we screw up. You’ll see why your brai...

17 Feb 39min

Hidden Potential: The Psychology of self-sabotage and changing what's possible - Heather Moyse (2x Olympic Gold)

Hidden Potential: The Psychology of self-sabotage and changing what's possible - Heather Moyse (2x Olympic Gold)

We all love the idea of “potential” until it quietly turns into pressure, guilt, and a weird fear of actually trying. Heather Moyse didn’t start professional sport until 27 and still became a double ...

13 Feb 53min

The Feynman Technique: The 4 Steps to Learn and Master Anything

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Most people “learn” by hoarding facts, which doesn't mean you understand them. Then you forget them all anyway... In this episode, learning stops being about cramming and starts being about curiousit...

10 Feb 20min

How to Stop Wasting Time with the Wrong People - Emotional maturity with Jonathan Aslay

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Most people treat dating like a lottery; swipe, hope, repeat. Jonathan Aslay lost $2 million, his marriage, and his son. What saved him wasn't positive thinking. It was asking one brutal question: "W...

3 Feb 36min

Surrounded by Conformists: How to spot the 5 types of NPC and think your own thoughts - [Psychology of non-player characters]

Surrounded by Conformists: How to spot the 5 types of NPC and think your own thoughts - [Psychology of non-player characters]

The algorithm doesn't want you to think; it wants you to react. It wants you to be a character in its story, following a predictable path of outrage and agreement. We are living through a shift where...

27 Jan 42min

How To Build Free Will

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Free will sounds easy until you look closely. Then it turns out to be smaller, stranger, and far more difficult than advertised. We take a cheerful scalpel to the idea that we’re the conscious captain...

20 Jan 53min

5 Surprising Truths About Independence and Being Yourself: What really impacts who you are

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The idea that you are a blend of the 5 people you spend time with has a dangerous side. In fact, it's not exactly true. In this episode, I break down why the Growth Mindset is actually about autonomy...

16 Jan 20min

Life's Infinite Games: How to play by your own rules

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What if the game you're playing isn't yours? Every moment of your life, something is at stake. Ignore your partner, they feel less loved. Choose status over meaning, you'll need a therapist. We inhe...

13 Jan 23min

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