What is the Representativeness Heuristic?

The 80 Percent Express are special short episodes in which I share a financial concept or answer a question sent by a listener.

Today, let’s talk about the representativeness heuristic. It sounds technical, but it’s really just a way of describing how we tend to judge something based on how closely it matches what we already believe or recognize. The thing is, our brains love shortcuts, and when it comes to personal finance, those shortcuts can lead to expensive mistakes.

To read the transcript, you can visit my blog post here.

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