Distinction bias - Deepstash
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Distinction bias

Is the tendency to over-value the effect of small quantitative differences when comparing options.

For example: we think a 1,200 square foot home will make us happier than a 1,000 square foot home. We think earning $70,000 a year will make us happier than earning $60,000 a year.

Mostly encountered in when we are in the situations of buying something new.

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Overcome distinction bias

  • Don’t compare options side by side:Β In comparison mode, we end up spending too much time playing β€œspot the difference.” Instead, evaluate each choice individually and on their own merit.
  • Know your β€œMust-Haves” before you look for something to buy: that way, you won't ge...

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What Money Can Buy

Money can actually buy happiness. It takes less than you think and it depends on what you buy.

It takes between just $60,000 -$75,000 for emotional well being and happiness. Earning more than that can make you unhappy, because you have more demands on you,...

βœ… Enjoy more experiences

Research has shown that time and time again, money doesn’t really buy you happiness (even though most of us think it does).Β 

What you should put your money toward β€” rather than buying more stuff β€” are experiences or charity.Β 

Research has shown that w...

Out Of Auto-Pilot Mode

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The first of the month, or the year, and the first day of the week make us stop and think whether we are headed the right way in our lives.

It draws a line in our ongoing life, marking an opportunity for us to improve how we are at home and work.

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