1. The Financial Downsides of the Anchoring Bias: How it Can Impact Your Finances 2. The Negative Effects of Anchoring Bias on Your Financial Well-being 3. Damaging Financial Consequences of Anchoring Bias: How it Impacts Your Money 4. The Hidden Financial Dangers of Anchoring Bias and Their Impact on Your Wallet
Gilaxia | E+ | Getty Images In everyday life, humans utilize mental shortcuts to process information and make quick decisions. However, these shortcuts can lead to poor choices in personal finance. Anchoring bias is one example of a cognitive bias that hampers rational thinking. Anchoring bias occurs when the brain overly relies on initial impressions …