Why your most important goals could trigger financial bias

Biases affect how you act, and the personal goals you’re working towards could distort how you perceive risk, rewards, and information. Indeed, the more important the goal is to you, the more likely it is that bias occurs.

Being aware of when bias might occur – and what might trigger it – could help identify when it may be affecting your decisions. Read on to find out more about the relationship between bias and your goals.

Your personal goals could mean you’re more likely to react emotionally

Biases are mental shortcuts that help with quick decisions. You have to make hundreds of small decisions every day, from what time to set your morning alarm to which route to take to work. Biases can help you tackle these daily decisions effectively. However, they can be harmful when you’re making important decisions.

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