Know your gaps, limitations, and biases

Our personal experiences are limited and shape our perception of money. Background, life experiences, and generational differences affect how we perceive risks and rewards. Our brains create stories to fill gaps in information, leading to an illusion of certainty and control. We tend to overemphasize skills and effort, neglecting luck and risk. Extreme examples influenced by luck and risk are hard to replicate. Recognizing our limitations and understanding broader patterns can lead to better financial decisions.