Financial terminology
What is an Asset
This self-serving bias refers to your tendency to look for information that confirms what you already believe. It also causes you to ignore information that would disprove your beliefs.
Confirmation bias
promise made after the American Civil War to provide formerly enslaved Black families with land and resources
40 arces and a Mule
financial obligations, or debts, that a person or company owes to another party, and they represent a claim on an asset.
What is a Liability
This type of bias happens when you either favor someone or think less of them because of their gender.
Gender bias
calculated by subtracting your total liabilities (what you owe) from your total assets (what you own)
NET Worth
You believe everything your financial advisor because of his credentials
Authority bias
Income
any money or equivalent value received, typically on a regular basis, in exchange for labor, goods, or capital.
Seeing a house that costs $1 million and then finding a second one for $500,000 and feeling as though the second house seemed inexpensive. However, if the first house you saw was $200,000, you’d feel differently about the $500,000 house.
Anchoring Bias
You owe more than you own; you may need to focus on reducing debt to improve your financial situation.
Negative Net Worth
you tend to prioritize the input of other people in the room or those who are physically close to you over the thoughts of those who are farther away.
Distance bias