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The Psychology of Money

You’ll Change

(Chapter 14)

We are terrible predictors of our future selves. Our present needs, wants, and dreams are not the same as our future needs, wants, and dreams.

 

“The End of History Illusion is what psychologists call the tendency for people to be keenly aware of how much they’ve changed in the past, but to underestimate how much their personalities, desires, and goals are likely to change in the future.”

 

The result is that long-term plans and decision-making is very difficult to do effectively.

 

Accept the reality that individuals are prone to change. What matters to you today, may be viewed as inconsequential in a decade.

 

“Sunk costs—anchoring decisions to past efforts that can’t be refunded—are a devil in a world where people change over time. They make our future selves prisoners to our past, different, selves. It’s the equivalent of a stranger making major life decisions for you.”


Explore the intriguing book "Psychology of Money" on YouTube with Vineet Patawari, CEO of Elearnmarkets & StockEdge. 


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