Why Do People Do Dumb Things? | MHFI 145

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. Behavioral Economics Why money is emotional Buying more than we can afford How group mentality affects our decision-making Cognitive Biases Availability bias Confirmation bias The struggle of having too many choices The ostrich effect Connect with Dusti on Instagram. – Check out the Econome Conference – Save money using our coupon code MILEHIGHFI. Carl and Doug will be there, so come and hang out. Join the Mile High FI Club – It’s our email list! Get MHFi Merch – It helps support the show. Get t-shorts & more **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.** Brought To You By: The Doug Show, aka Affiliate Marketing & Side Hustles 1500 Days, Carl’s Blog about Early Retirement Email us here: [email protected] or [email protected]   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