“I’m broke.” You probably know a friend or coworker who casually slips that sentence into a conversation on a regular basis. You may even use it yourself. If you don’t use “I’m broke,” it may be some other self-definition such as “I’m just middle-class,” or “I’m not cut out to be an investor.” The problem is: If […]

Let’s take a look at a problem known as the confirmatory bias. It’s a shortcut in thinking in which people just pay attention to the information that confirms what they already believe, whether or not the information is true. This happens most often for emotionally-significant issues and for established beliefs. For example, if I have […]

Have you ever been so focused on something, you completely missed an obvious detail or opportunity that was occurring at the same time? It is a useful skill to be able to pay close attention to something, but it is amazing what can we miss because of selective attention.  For a hilarious example of this, […]

Sometimes I think I should be writing a food blog instead of a personal finance blog, especially given the number of food entries I have posted (see grits, chocolate cake, marshmallows, soup, and lomi lomi salmon). Today, I focus on stew.  Not the Irish beef stew or the vegetable stew, but the kind of stew […]

Let’s take a look at a problem known as the confirmatory bias.  It’s a shortcut in thinking, (often considered an error in thinking), in which people tend to favor information that confirms their pre-existing beliefs or hypotheses regardless of whether the information is true.  This happens most often for emotionally-significant issues and for established beliefs.  […]