![]() ![]() So, you…Ī.Reassess the stock as if it were a fresh investment.ī.Hold on to it until it gets back to at least its original price. ![]() Q.You buy a stock, but its price drops 25% following dismal earnings in the next quarter. So, here are eight questions that will help you understand if you have any biases and what you can do to avoid them. It can help lower the risks and improve our financial well-being in the long run. Understanding our biases can help us overcome these issues and turn us into better investors and savers. Instead of being rational about our money, we are swayed by emotions and impulses, which prevent us from arriving at objective decisions. These behavioural biases often come to the fore when we take financial decisions. Most of these prejudices are subconsious and often cloud our judgement, whether it is about the career we want, the person we want to marry, or how we should spend and invest our money. Seems impressive, doesn’t it? If, however, you factor in the possibility that the same 10 results fit thousands of people, you may have a better understanding of the psychological pitfall of biases.Īll of us invariably have personality quirks, preferences and perceptions about ourselves. If it isn’t, you simply take the test again, and the second time, you get it right. Surprisingly, you always find the answer to be 80-100% correct. "Even if you borrow extra, it can end up costing you less," said Sullivan, in terms of APR and other fees.Have you ever taken one of those personality quizzes on the Internet? The ones where you answer a handful of questions to identify the kind of person you are. If you have good enough credit to qualify for a decent interest rate, you might be better off borrowing a little more with a longer repayment period to give yourself some breathing room. "It doesn't get you into that revolving door of loans or cash advances." If you have a flat tire and you've got no money and you have to get to work, this might be a preferable option especially if your bank doesn't charge a fee, said Sullivan. Most banks and credit unions, along with apps like Chime, offer the ability to overdraw your account. That way you won't have to pay fees, interest or share banking information. If it won't jeopardize your relationship, you might simply ask a family member or friend to spot you until payday. If you need money fast, look for cards that let you use them instantly. ![]() If you have strong credit, you may qualify for a credit card that has no interest on purchases for a period of time, which can be 12 months or beyond. When you borrow using online apps, you get a chance to compare offers, and that's something Sullivan suggests people should take advantage of in order to find the most favorable terms. ![]() "Some people simply don't want to see someone face-to-face," said Sullivan. For people who find themselves short of funds because of poor planning, there could be a level of embarrassment to have to walk into a bank or ask someone in person to lend them money. "It usually takes around 10 to 15 minutes, and that can be both a blessing and a curse," said Vincent Birardi, certified financial planner and wealth advisor at Halbert Hargrove. Start by simply downloading the app, and you'll be prompted to enter some basic information and your bank account login information. "If you're in a hurry – and a lot of people who need loan apps are in a hurry – you can probably find something that will provide cash the same day." "Most traditional lending sources can take two to three days to get a loan approved," said Sullivan. ![]()
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