Avoid these two biases to increase your savings

Present Bias:

55% of us are prone to Present Bias and it affects our retirement portfolio. Present Bias is a tendency to put off decisions that are likely to benefit us in the long run, but which involve short-term costs. People prone to present bias have on average 19% less in savings than those who are not affected by it.

Exponential Growth Bias:

70% of us are prone to Exponential Growth Bias i.e 70% of us don’t really understand how compounding works and how it can help us grow wealth over decades of savings. Those who have a good grasp of the power of compounding have 20% more money saved than those who don’t understand it too well.

A Systematic Investment Plan (SIP) is an easy way to beat both the biases by committing to monthly investments.

 

Visit www.kuvera.in to invest in “Direct Plans” of Mutual Funds and save BIG on commissions!!!

If you like this post, share the love below..

1 Responses