Doug chats with his friend, Dusti, about cognitive biases and behavioral economics.
They discuss how our financial habits are heavily influenced by emotions, and why we oftentimes spend money on unnecessary things.
- Why money is emotional
- Buying more than we can afford
- How group mentality affects our decision-making
- Availability bias
- Confirmation bias
- The struggle of having too many choices
- The ostrich effect
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**Disclaimer: The podcast is for informational purposes. Maybe entertainment but we won’t even make such a claim. You shouldn’t take the info as financial, legal, or tax advice. We aren’t certified financial planners or advisors. We’re not qualified for much. So get advice from professionals.**
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0:00 – Intro
1:20 – Who is Dusti?
12:12 – Behavioral economics and the emotional side to money
18:11 – How you can support us
21:02 – Availability bias
23:10 – Confirmation bias and how society affects our buying decisions
29:39 – Is having fewer options better?
34:28 – People overvalue what they own
43:06 – Going along with everyone else
50:04 – Loss aversion
53:20 – The ostrich effect