These 4 Common Biases Could Be Sabotaging Your Decisions
Our minds are incredible, but they’re not always rational. Cognitive biases — mental shortcuts and errors in judgment — can often lead us astray, influencing decisions about money, time, and relationships. Here I’ll break down four of the most common biases, show how they play out in everyday life, and provide practical solutions to avoid them. 1. Anchor Bias What is it? Anchor bias occurs when we rely too heavily on the first piece of information (the "anchor") presented to us, even if it’s arbitrary. Everyday Example: Imagine you’re shopping for a shirt without a set budget in mind. The salesperson shows you a shirt for ₹2,000. You reject it as too expensive, so they offer a ₹1,500 shirt. Finally, you settle for one priced at ₹1,200. Here’s the catch: Your original budget — ₹800 — was never part of the conversation. Instead, you anchored yo...