Behavioral Economics2020-05-24T06:40:43-05:00

Behavioral Economics

6 Steps to Conquer Choice Overload Bias – Part 3

In my last post, I connected an increase in anxiety with the additional choices and freedom brought on by financial independence.  Thanks to Barry and Danielle’s insights I was able to take a step back and see what was happening inside my head, Choice Overload. I have a natural tendency to maximize every decision, and when I face multiple decisions at once it leads to decision deferral, and decision fatigue.  While in my mind I was trying to do great things, in reality I was like the baby above, doing nothing but sticking my foot in my mouth. Once I [...]

By |September 20th, 2021|Behavioral Economics|0 Comments

Choice Overload Bias, Financial Freedom’s Hidden Hurdle – Part 2

Sarah and my financial independence dream was coming to fruition and it was inevitable we were going to reach our magic number. So why, at the same time, did I feel overwhelmed and full of anxiety? Everything I heard or read up until this point led us to believe financial freedom would be just that, freeing. But so far it was more stressful than freeing. I felt the weight of opportunity upon our shoulders. Since the beginning of time, we as first world humans have never had more opportunities or options. The endless amount of options create more choices, decisions [...]

By |August 16th, 2021|Behavioral Economics|0 Comments

Anxiety, the Last Hurdle Before Financial Freedom – Part 1

Severance Update In my last post, “No Power, No Water, No Heat, No Severance'' we were in the middle of a cold front that left us without electricity, water, and internet. This delayed all of my corporate work communications and the following week when the essential services came back online I received word on my severance request and... It was accepted. I am now twice retired, and can focus on HIT, family and friends. Financial Independence It has now been 3 months since retiring and financial independence has been everything I dreamed it to be. But before I share more [...]

No Power, No Water, No Heat, No Severance – My Snapshot of Houston’s Freeze

It is 8:30 am on Wednesday, day 3 of a 6-day cold spell across Texas.  We lost power around 2 am Monday and have been relying on our fireplace, camping gear, and friends for warmth.  I once laughed at the fact, 90% of homes in Houston had fireplaces.  Thank goodness we bought one of those homes, as the fireplace is keeping our living room a toasty 48 deg F! The Damage In addition to losing power, our water has stopped flowing, and the technique of dripping faucets is no longer available to prevent frozen pipes.  As a result, we shut [...]

By |February 18th, 2021|Behavioral Economics|4 Comments

Implicit Bias, 10 Actions to Take at Work

My sister shared the following riddle based on implicit bias with me last week.  If you are free from bias, good luck 🙂 The Riddle A man and his son are in a terrible car accident and the father dies.  The boy is rushed to the hospital and in need of surgery.  Once in the operating room the doctor comes in, looks at the boy, and says “I can’t operate on him; he is my son!”. How can that be?  Who is the surgeon? Was the answer quick and natural?  (The surgeon is the boy’s mother).  I wish this was [...]

By |September 9th, 2020|Behavioral Economics|2 Comments

315 Cognitive and Behavioral Biases

Do you think you are a better driver than your friends? Is common sense ingrained in our veins? It appears not. In the 1970’s psychologists started proving we repeatedly make irrational judgements and decisions in similar circumstances.  In fact, 93% of Americans surveyed thought they were a better driver than the median.  That is not our common sense shining through, but one of many behavioral biases, and in this case illusory superiority. I was able to convince my son I was a better driver than he was. Uncertainty We each suffer from behavioral and cognitive biases and during [...]

By |May 24th, 2020|Behavioral Economics|0 Comments