Most people have an extremely complex relationship with money, underlying the decisions we make as we earn, spend, invest and save.
Cognitive biases deeply affect people at work. In Dilbert, the workplace comic strip by Scott Adams, we can find examples of framing (seeing something in a positive or negative light, depending on how it’s presented) and confirmation bias (finding proof for what we already believe to be true). See: Dilbert Does Behavioral Economics.
What about what lies beyond work, in retirement? Preconceived notions and biases affect us here as well. People think they must have a certain amount saved by a certain age, for fear they’ll be slaves to the workplace forever.
Yet, “With the prospects of a financially secured retirement extending beyond the grasp of more and more people, it may be time for a more realistic and healthier definition of retirement.” See: The Joy and Freedom of Working Until Death.
There are ways to trick the brain into helping us achieve our goals at work. By acknowledging that we’re procrastinating and naming the reason, we can apply very specific tactics to address that issue and get the job done. See: How to Make Yourself Work When You Just Don’t Want To.
Challenging the status quo and shining a spotlight on those unconscious choices can have a profound effect, as Warren and Betsy Talbot discovered when they launched a money makeover in a quest to create the life they really wanted. “When we switched our thinking to question whether our money practices fit with our lifestyle goals instead of how to fit our lifestyle goals into the money we had, it was a game changer.” Read more: How a Money Makeover Helped One Couple Live Their Best Life.
Where are hidden biases or outdated assumptions hampering your financial security and success?