Tuesday, January 3, 2023

The ostrich effect is a cognitive bias that causes us to ignore the negative impact of a situation.


It is our tendency to pretend that our financial problems do not exist, in an attempt to protect ourselves from strong negative feelings.


Not checking bank accounts and ignoring debts are examples of the ostrich effect at play.


Unless you are aware of the real state of your finances, you can't take proper action to deal with the situation, which could ruin your finances.


It's important to keep track of all the information you need to manage your money so you can take the necessary steps at the right time.