You Think Bad Things Only Happen to Other People<\/strong><\/h3>\n\n\n\nHuman beings are inherently optimistic by nature. I guess it is nature\u2019s way to ensure we survive and progress as a species.<\/p>\n\n\n\n
Our optimism allows us to explore the outer reaches of space or the depths of the ocean despite the dangers. <\/p>\n\n\n\n
In the business world it allows entrepreneurs to start new businesses even knowing that majority of new businesses fail.<\/p>\n\n\n\n
Remember those statistics you come across from time to time. <\/p>\n\n\n\n
The type that tells you that something is very safe because it is safe 99.5% of the time. Or only 1 in 200 cases go wrong.<\/p>\n\n\n\n
We take comfort from that and go into that activity without thinking much more.<\/p>\n\n\n\n
That statement about the action being safe is true most of the time except when you are in the 0.5%. <\/p>\n\n\n\n
In that case risk of things going wrong for you is now 100%.<\/strong><\/p>\n\n\n\nBut our optimism makes us believe that we won\u2019t ever be caught in the 0.5%. It will always happen to someone else instead.<\/p>\n\n\n\n
A dangerous belief of personal financial wellness is this: It can\u2019t happen to me.<\/p>\n\n\n\n
This belief can lead to some risky behaviour in your personal financial life:<\/p>\n\n\n\n
– Not taking adequate life insurance.<\/p>\n\n\n\n
– Not planning for retirement in time.<\/p>\n\n\n\n
– Risking your life savings on a single investment bet.<\/p>\n\n\n\n
Sometimes you don’t get a second chance to recover from a fatal personal finance mistake.<\/p>\n\n\n\n
You are in competition against your optimism about the risk of things not going wrong in your financial life.<\/p>\n\n\n\n
You Think You are in Full Control When Making Choices<\/strong><\/h3>\n\n\n\nWe have an ingrained belief that we are in complete control when making a financial decision. <\/p>\n\n\n\n
We like to believe that we look at all available information and then make a choice that suits us best.<\/p>\n\n\n\n
Of course the real world works otherwise. <\/p>\n\n\n\n
Companies employ entire teams whose only job is to subtly influence how we make those decisions.<\/p>\n\n\n\n
They work to subconsciously alter the decisions you are going to make. <\/p>\n\n\n\n
Just think of the whiff of freshly brewed coffee or baked bread when you enter your local store. <\/p>\n\n\n\n
You have been primed for your purchase of a latte or a loaf.\u00a0<\/span><\/p>\n\n\n\nResearch suggests that even the music being played in the shop while you browse has an impact on what you eventually end up choosing.<\/p>\n\n\n\n
It is the same with your online behaviour. <\/p>\n\n\n\n
What you are shown on the screen is based on your past behaviour and purchasing habits.<\/p>\n\n\n\n
The information is being managed to extract the maximum dollars out of you at every opportunity.<\/p>\n\n\n\n
You may end up spending much more than you intended because of the clever marketing being employed by companies all around you.<\/p>\n\n\n\n
We have much less control than we think on the decisions we are making.<\/p>\n\n\n\n
Your conscious rational mind is constantly competing with your subconscious mind that is being primed by companies that want you to spend more and more.<\/p>\n\n\n\n
Conclusion<\/strong><\/h4>\n\n\n\nWhen it comes to your personal financial life, your biggest competitor is you.<\/p>\n\n\n\n
Your own behaviour, beliefs and feelings can be a much bigger threat to your financial wellbeing compared to, say the risk of a thief breaking into your house.<\/p>\n\n\n\n
We spend enormous resources on looking at our external competitors. <\/p>\n\n\n\n
If we devote the same resources to our own decision-making process, the results can turn out to be far superior.<\/p>\n\n\n\n
Look in the mirror. That\u2019s your competition.<\/p>\n","protected":false},"excerpt":{"rendered":"
Does it feel like you have always been in a competition? Competing with your classmates in school for good grades, with your college buddies to land your first job and now with your colleagues to grab that coveted senior role. In a world with limited resources like college places or good jobs it is natural […]<\/p>\n","protected":false},"author":1,"featured_media":881,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7],"tags":[],"yoast_head":"\n
Look in the Mirror. That's Your Competition<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n