Many of us get mental blocks from time to time. But did you know these blocks can also impact your financial planning?
We’ll explain what IKEA and bikes have to do with optimism and pessimism and why you might be handling your finances the wrong way.
- How the “IKEA-effect” causes us to place a higher value on things we partially created ourselves. (1:00)
- Why being extremely optimistic might be the wrong approach when it comes to your finances. (3:18)
- How extreme pessimists sometimes have their assets in cash instead of investments and why that’s not a great idea. (4:49)
Thanks for listening! We’ll be back for another show every other Thursday.