Episode 59: Cognitive Biases & How they affect our money and spending Part 6 of 6

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

This episode is part 5 of our 6-part series on Cognitive Biases and how they impact us and our money each and every day! (Make sure you check out part 1, part 2, part 3, part 4 and part 5 if you haven't yet)

It’s important to know what these 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 Ostrich Effect is impacting the way we approach money decisions - do we tackle them head on or do we stick our head in the sand?

In this episode you will learn:

• The Ostrich Effect - what it is and how it’s being used to affect my  decision-making
• How this shows up on a regular basis for us
• The impact it has on our future potential with money
• How we can overcome this bias

How to overcome the ostrich effect:

• Solution 1: Focus on the idea that paying attention gives you the power to make a decision when necessary. Not paying attention means no decisions are made. It’s disempowering.
• Solution 2: Stop and ask yourself, “Why am I doing this? Why am I ignoring it or putting it off?” Recognize that just because you might think the news will be negative, doesn’t mean it will be. And, even if it is, once you know the reality, you can consider taking concrete steps to improve it. Dealing with debt may sometimes make you feel powerless, but the ability to make changes is what gives you control.
• Solution 3: Seek helpTake charge of your finances and, if necessary, seek help from Coach Jill & I. The more you know about your money, the more prepared you’ll be to handle it responsibly and positively. Commit to asking for help when you notice that parameters you’ve set for yourself are falling out of line.

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
• Part 4 of 6 of the Cognitive Bias series
• Part 5 of 6 of the Cognitive Bias series
• Related blog post: 13 ways to conquer financial temptations so you can spend less, save more and be happier!
• Join our free private Facebook group, Fiscal Fitness money strategies for driven professionals and solopreneurs, here
• If you are inspired to help others with their money ask to join our free private Facebook group, Financial Coaches Unite here or check out the Financial Coach Academy here.