In a perfect world, logic would always guide our financial decisions. Emotions wouldn’t come into play.
But we don’t live in a perfect world. Far from it.
That means our emotions impact our financial choices more than we realize.
Shockingly as much as 95% of our purchase choices are made subconsciously, driven by our emotions—as little as 5% are based in logic (and that’s when we’re in a good headspace and feeling comfortable and secure).
When we’re faced with uncertainty, fear and instinct can take over and push logic right out of the window.
Your brain will make you want to react quickly to protect yourself and avoid the pain you anticipate from potential losses.
Ironically, these instincts often make things worse. Emotional reactions can lead to poor choices and the losses you were trying to avoid in the first place.
The best way to avoid letting your hardwired biases take over? Click here to use these 6 strategies. They can help you fare better in any crisis. They may even make you a savvier investor.