Wealth Advisor Reveals How Money Plays Tricks on Your Mind (Feat. Naftali Horowitz) | KOSHER MONEY

Step-by-Step Tutorial: Understanding Behavioral Finance and Overcoming Money Biases

1. Introduction to Behavioral Finance:

   • The video discusses the concept of behavioral finance, which explores how psychological factors influence financial decisions.

2. Recognizing Common Money Biases:

   • The speaker highlights common biases and irrational behaviors exhibited by investors during times of stress and turmoil.

3. Understanding Decision-Making Biases:

   • The video presents various scenarios and questions to help viewers understand how biases such as anchoring, regret aversion, and mental accounting can impact financial decisions.

4. Anchoring Bias:

   • An example is given where anchoring to a specific number affects estimations, emphasizing the need to seek out base rate facts before making decisions.

5. Regret Aversion:

   • The concept of regret aversion is explained, showing how individuals may avoid taking action due to fear of regret, even if it leads to suboptimal outcomes.

6. Mental Accounting:

   • The speaker discusses mental accounting, where individuals treat different financial buckets differently, leading to potentially irrational decisions.

7. Representation Bias:

   • The video touches on representation bias, which involves making decisions based on incomplete or biased information rather than facts.

8. Overcoming Behavioral Biases:

   • Tips are provided to help viewers overcome these biases, such as looking at money and spending in totality, seeking out base rate facts, and making decisions based on logic rather than emotions.

9. Impactful Financial Decision-Making:

   • Encouragement is given to make impactful financial decisions by focusing on the current prospects of an investment rather than past trends or biases.

10. Engagement and Support:

    • Viewers are encouraged to engage with the content by commenting with the word "impactful" to support the channel and sponsors who provide valuable financial resources.

11. Additional Resources:

    • Links and recommendations are provided for sponsors like approved funding, call Chabad, and twilery for further financial advice and support.

12. Conclusion and Gratitude:

    • The tutorial concludes with a message of gratitude to the viewers for their support and engagement, inviting them to explore bonus content on mishbacha.com and share feedback.

By following these steps and understanding the insights shared in the video, viewers can gain a better understanding of behavioral finance and make more informed financial decisions in the future.