These psychological biases may be holding you back from building wealth

What is lifestyle creep and how could it ruin your retirement savings?

We have all heard that you shouldn’t let your emotions drive your financial decisions. Unfortunately, that may be harder than it sounds, especially when the market sells off. 

There may be a number of psychological biases holding you back from building wealth. That’s because the part of our brain that allows us to imagine the future doesn’t move as fast as the part that governs emotions. 

Michael Finke, professor of wealth management at The American College of Financial Services, explains, “The emotional part of our brain was effective when doing things like avoiding saber-toothed tigers, but it may not be as effective in a modern economy.”

The good news is there are things you can do to overcome these biases. So look out for these six biases, so you can learn how to conquer them.

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