Rule No. 3: Be Your Own Pal
Humans, and men in particular, tend to be overconfident. We overestimate our future earnings and underestimate our chances of a heart attack. When we make money in the stock market or in black-jack we attribute it to skill. Lose money? Oh, that’s bad luck. Studies show that women outperform men when trading stocks simply because they’re less confident, so they trade less frequently.
Ariely’s solution: Before making a financial decision, imagine a friend of yours facing the same situation. What advice would you give him?
That, then, is the course of action you should take.
For access to exclusive gear videos, celebrity interviews, and more, subscribe on YouTube!Back to top