DecaMillionaire Decoded Behavioral Finance - Emotions that Drive Our Financial Decisions
In episode 143 of Financially Simple, Justin looks at the various types of bias that people can have with regard to Personal Finance.
Hardly anyone is truly rational when it comes to money and investments, their emotions and the opinions of others can have an effect on how a person chooses to spend or save. Justin lists 19 different types of Bias that can influence us in our financial decisions.
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TRANSCRIPT/BLOG: How Money Biases Affect the Way You Spend, Save, & Invest Money
TIME INDEX:
00:45 - Behavioral Finance 04:12 - Money Biases 05:04 - Affinity Bias 06:02 - Anchor Bias 07:14 - Bandwagon Bias 08:04 - Confirmation Bias 09:01 - Endowment Bias 09:46 - Familiarity Bias 10:15 - Framing Bias 10:43 - Hindsight Bias 11:10 - Illusion of Control Bias 11:50 - Loss Aversion Bias 12:29 - Mental Accounting Bias 13:06 - Outcome Bias 13:24 - Overconfidence Bias 14:21 - Recency Bias 15:22 - Representative Bias 16:10 - Self-Attribution Bias 17:17 - Self-Control Bias 18:15 - Status Quo Bias 18:35 - Trend-Chasing Bias 19:47 - Identify Your Biases 20:58 - Wrap Up
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BIO:
Justin A. Goodbread, CFP®, CEPA, CVGA, is a nationally recognized financial planner, business educator, wealth manager, author, speaker, and entrepreneur. He has 20+ years of experience teaching small business owners how to start, buy, grow, and sell businesses. He is a multi-year recipient of the Investopedia Top 100 Advisor and 2018 Exit Planning Institute’s Exit Planner Leader of the Year.DISCLOSURES:This podcast is distributed for informational purposes only. Statements made in the podcast are not to be construed as personalized investment or financial planning advice, may not be suitable for everyone, and should not be considered a solicitation to engage in any particular investment or planning strategy. Listeners should conduct their own review and exercise judgment or consult with their own professional financial advisor to see how the information contained in this podcast may apply to their own individual circumstances. All investing involves the risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Investment advisory services offered by WealthSource Partners, LLC. Neither WealthSource Partners, LLC nor its representatives provide legal or accounting advice. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WealthSource Partners, LLC. Statements made in this podcast are subject to change without notice. Neither WealthSource Partners, LLC nor its representatives, the podcast’s hosts, or its guests have an obligation to provide revised statements in the event of changed circumstances. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes the use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
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