Here are three life lessons you can learn from social psychology. They are three human biases that are wickedly common. They can ruin your finances, your career and they can ruin your relationship. Each bias has a quick snippet of advice that can help you avoid it in the future.
Hyperbolic Discounting – Damages Your Finances
It is a form of present-moment bias related to dynamic inconsistency. It involves making a decision in the present that will make your future a choice that you did not make. Yet, in both cases, you are using the same logic and have access to the same information.
What affects most people is the possibility of an immediate payment, which can lead people to make decisions in the moment of regret for future decisions. Hyperbolic discounting is more often seen in the case of money. People today spend money for pleasure knowing that money can be used for other purposes. Those people have the same information and the same knowledge of the present. Even now they have the same opinion, but their hyperbolic discounting bias forces them to decide now that they will regret it in the future. It is a form of inconsistent decision making over time and if you are governed by it, it can hurt your finances.
How to avoid it?
Lack of discipline is often the reason we opt for current pay as opposed to late pay. Discipline is the only real way to fight this kind of bias. Can you save instead of spending, keep instead of eating, kiss instead of rubbing? Keep up the good work, and you’ll be fine.
Gambling Misconceptions – Runs Your Career
The inability to understand probability in its original form is difficult enough, but even in its ordinary form it is difficult for gamblers to understand.
In its solid form, probability is set against the principles and laws of the universe, and if these are within the limits of infinity (there is a paradox for you), then everything is possible and the probability of everything is 1, 0, – 1, or all three.
In its simplest form, probability means there is a certain number of results and each result has a certain probability. Gambler delinquents believe that past examples and results will change what is going to happen in the future. This is called gambling delusion because you see it most with gamblers.
For example, a person playing a lottery game might say, I have to keep playing, I have bought a ticket for the last 10 years and so a winner. Worse still, those who say, “I’ve been playing the same number for the last ten years, and those numbers will come the day I don’t play.” The likelihood of these numbers coming does not change because the player did not play that week, nor has that player played for the last ten years.
How to avoid it?
You just have to be more discriminating with the help you render toward other people. For example, there is a 1 to 14 million chance of winning the UK national lottery The numbers 1, 2, 3, 4, 5 and 6 are just as likely to come to a draw as your numbers.
Would you bet on that order of numbers? Probably not, and yet the chances of you coming up with any number you pick are exactly the same. Learn about the possibilities and you may be able to fix your gambler’s delusions.
Dreamy relationship – destroys the relationship
It probably ended a lot of relationships just like Facebook. This is where one perceives a relationship between two unrelated events. A great example is the guy who invites a new girlfriend to his house. It’s raining, and he’s walking fast from the train station to his house. She’s walking with him, but a little behind because he’s not that fast. Arriving at his house he was upset, but not because of the rain or because he was walking fast.
She is upset because she has an illusory relationship that has led her to believe that she is somehow ashamed of him or that she does not want other women in her town to know that she is dating someone.
The man was walking fast and not holding hands because he wanted to get out of the rain and inside the house. He had nothing to do with her or her feelings towards him, but he had an illusory relationship with a number of causes and events in that situation, and he was convinced of something that was not true.
How to avoid it?
You do not have to give everyone the benefit of the doubt as it is okay to have a skeptical and skeptical nature, but you have to come up with multiple views or reasons. If you come to a conclusion, ask yourself what the alternative might be and keep your mind open to other possibilities.
Michael McPherson is a graduate student at Boston University, a freelance blogger and regular contributor to www.topreviewstars.com. You can follow him on Twitter: mcphersy
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