We Create Narratives Over Things We Don’T Understand To Deceive Ourselves

People by nature prefer fictional narratives than the harsh reality

• This happens a lot in finances.
• When you want something to be true, you are going to anchor yourself to everything possible that points to that situation.
  • If you want the stock market to rise, you will be filled with positive news about the stock market.
• We are ignorant people who eat stories as if it were reality.
  • This is the importance of the margin of error, flexibility and financial independence, which will save you when you move on this path.

We all have an incomplete account of the world, but we create a complete account to fill in the holes.

• Nobody understands everything that happens in the world, we make up explanations.
• History depends on interpretation, and we only take what reinforces our beliefs.

LOK: 4. Management
RL: Psychology of money
IDEAS: Personal finance]