Hedonic Adaptation is the positives and negatives affecting the emotions of others involving the spending of money.
The Bia's impact on personal finances-
TIME DISCOUNTING- Fights against delayed gratification, making us more likely to value immediate rewards over ones to be had in the future.
ANCHORING BIAS- Thr first number that you see, whether that's a prive or a salary that comes up in negotiations, colors any that cone after it. A higher anchor influences you to spend more then you normally would.
DENOMINATION EFFECT- It's not just you. Studies have shown that people are less likely to spend higher denomination bills. Once you break that $50, however, you may be in trouble.
COUNTERACTING THE INFLUENCE OF HEDONIC ADAPTATION- Focus on experiences, rather than results. For example, if you're planning a vacation, you'll feel better by staying in the moment and appreciating each day, instead if worrying whether it'll be good or a bad vacation. Even being able to organize your payments is best to feel ready.
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Next Gen Personal Finance
Non-FictionWhat I am currently learning in MONEY 101 will help others along the rode. So beginners with finance check this out😁
