How can we use technology to reduce decision fatigue in a world where we make up to 35,000 decisions daily?
Kate & Evan tackle this in today’s Brain Hacks episode and discuss how they use technology to reduce choice overload in their lives and improve their financial decisions.
ā Are there any repetitive actions in your finances that you can automate?
It is estimated that an American adult makes 35,000 decisions a day (Sollisch 2016). While some of these day-to-day decisions are seemingly benign, an emerging body of science indicates that making decisions may possess negative ramifications for controlling onesā behavior and the quality of subsequent decisions.
Common biases that impact our investing
- Loss aversion
- FOMO
- Groupthink
- Confirmation bias
- Anchoring
- Mental accounting
- Information overload/analysis paralysis
How can technology help us overcome our behavioural biases?
- Eliminates the paradox of choice
- It helps us automate our financial goals and plan, so it happens in the background every month
- Reduces the amount of changes/trades we make
- Reduces decision fatigueĀ
- Helps us focus on becoming long term investors and avoid the short-term noise
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In our latest series, “Brain Hacks with Kate Campbell & Evan Lucas”, the duo discusses common behavioural biases impacting our financial futures and strategies to combat them. Just look for the š§ episodes every Wednesday.
šš½āāļø ASK KATE & EVAN A QUESTION: https://bit.ly/3QtiY00
