A bias can destroy your ability to make logical decisions.
1. Confirmation Bias
Seeking information that confirms your preexisting beliefs.
↳ Why Bad: Prevents objective decision-making, reinforces flawed views
↳ Example: Only reading positive reviews about a product you want to buy
↳ The Fix: Actively seek out and consider opposing viewpoints.
2. Anchoring Bias
Over-relying on the first piece of information you encounter.
↳ Why Bad: Skews decisions, even if the initial information is irrelevant.
↳ Example: Focusing on a high initial price when negotiating a discount, regardless of actual value.
↳ The Fix: Compare multiple sources and avoid basing decisions solely on the first data point.
3. Overconfidence Bias
Overestimating your own abilities or knowledge.
↳ Why Bad: Leads to risky decisions and underestimating challenges.
↳ Example: Believing you can drive safely while texting, resulting in accidents.
↳ The Fix: Double-check your assumptions and plan conservatively.
4. Projection Bias
Assuming others will react, think, or behave as you would.
↳ Why Bad: Leads to misunderstandings when others act differently.
↳ Example: Expecting a friend would react the same way you would.
↳ The Fix: Recognize peoples differences, avoid expecting identical reactions.
5. Hindsight Bias
Believing past events were more predictable than they actually were.
↳ Why Bad: Distorts learning by making you overconfident in your abilities.
↳ Example: After a sports game, claiming you knew the outcome all along.
↳ The Fix: Keep a record of your predictions and reflect on their accuracy.
6. Bandwagon Effect
Adopting beliefs or behaviors because they are popular.
↳ Why Bad: Leads to conformity without critical evaluation.
↳ Example: Joining a viral investment trend without researching its risks.
↳ The Fix: Evaluate decisions independently and rely on evidence.
7. Loss Aversion
Preferring to avoid losses rather than acquiring equivalent gains.
↳ Why Bad: Makes you overly cautious, missing out on beneficial opportunities.
↳ Example: Avoiding a promising investment because of fear of losing money.
↳ The Fix: Reframe choices by focusing on potential gains rather than losses.
8. Status Quo Bias
Preferring the current state of affairs over change.
↳ Why Bad: Prevents innovation and improvements.
↳ Example: Sticking with an inefficient process at work because it’s familiar.
↳ The Fix: Periodically reassess choices & consider the benefits of alternatives.
9. Sunk Cost Fallacy
Continuing a commitment due to previously invested resources.
↳ Why Bad: Leads to further losses by refusing to abandon failing ventures.
↳ Example: Staying in a failing business project because of the money spent.
↳ The Fix: Make decisions based on future potential rather than past investments.