Making Money cover image

Making Money

7 ways your brain makes you poorer

Nov 27, 2023
Discover how intelligence doesn't guarantee good financial decisions, the impact of biases on our choices, and ways to combat cognitive biases. Explore the complexities of intelligence, riddles, and exponential growth in financial planning.
59:15

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Intelligence doesn't guarantee immunity to bad financial decisions, recognizing biases is crucial for informed choices.
  • Generalized IQ doesn't predict decision-making accurately; practical intelligence is essential for success in various fields.

Deep dives

Importance of Recognizing Cognitive Biases in Decision-Making

Recognizing and labeling cognitive biases in decision-making is crucial for making informed choices. David Robson highlights how being intelligent doesn't guarantee immunity to bad decisions, especially in finances. Understanding biases like the anchoring effect and sunk cost fallacy can help avoid irrational financial choices.

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