Title: Narrative Bias - How to make it work for your advantage
Headings: Narrative Bias – How to make it work for your advantage
Narrative Bias – How to make it work for your advantage
#1: Make a Story
#2: Make Connections
#3: Make Meaning

Content: In addition to seeing your goals as the reason for doing certain things at the macro level, you may also judge your financial behavior based on your personal values at the micro level. As I’ve shared before on this blog, a “ Value-Driven” budget system utilizes our mental accounting tendency while making our purchases meaningful at the moment to help us reduce the stress associated with detail budgeting. I also find making meaning a useful tactic when you make investment decisions. ( Although, for an investor, maximizing return should be the number one priority.) Many find investment decisions difficult to process not just because of the math, but because seeking profit alone doesn’t help us internalize the reward and make us a happier person. The same phenomenon explains why volunteers are usually more satisfied with the experience than unpaid interns, even if they do the exact same job. This is partially why I began writing the “Rethink Investing” series, to help you find meaning in your investment decisions so you can be a happier investor. So what is your narrative, and how do your financial decisions fit in your narrative?