Episode 56: Cognitive Biases & How they affect our money and spending Part 4 of 6

Part 4 of a 6-part series on Cognitive Biases and how they impact us and our money each and every day!

If you missed parts 1, 2, or 3 of the series, be sure to check them out too. 

It’s important to know what these biases are because they are impacting the way you make decisions and the way you think about your finances every single day.

In this episode, we discuss how the Bandwagon Effect is impacting the purchases we’re making but also the emphasis we place on the importance of those purchases in our lives.

In today's episode Kelsa covers:

• The Bandwagon Effect - what it is and how it’s being used to affect our  decision-making
• How the bandwagon effect shows up on a regular basis for us in marketing, social media and more
• How it’s impacting the purchases we make and leading us to fall for temptations.  Check out our blog post on overcoming temptation here. 
• How we can overcome the bandwagon effect.

Solutions to overcome the bandwagon effect:

• Solution 1: Become aware of how the bandwagon effect shows up and how businesses use this to impact us.
  • Ask yourself, “How is this brand trying to make me feel included right now?”
• Solution 2: Have a list of the things you want to buy along with the things you don’t want to buy- that way if you’re being tempted, you can be reference your list to see where it stands - where did you prioritize that when you were feeling logical and rational?

 

Resources:

• Part 1 of 6 of the Cognitive Bias series
• Part 2 of 6 of the Cognitive Bias series
• Part 3 of 6 of the Cognitive Bias series
• 13 ways to conquer financial temptations so you can spend less, save more and be happier!
• Financial Coaches Unite private facebook group for financial coaches
• Fiscal Fitness - money strategies for driven professionals and solopreneurs private Facebook group