Viridian’s Equation for an Optimal Life

Viridian’s Equation for an Optimal Life

Viridian’s Equation for an Optimal Life 150 150 Hugh Goodfellow

Have you ever stopped for a second and considered why you behave the way you do? Why do you do one thing instead of another?

Why do you chose that brand? Why do you always have time for a conversation about one topic, but never have time for another?

Apparently, it all comes down to those deeply held beliefs and emotions that shape our behaviour. And, critically, over time our behaviour determines our outcomes. Our lives seem so simple when you write it out like that, right?

We could even turn it into a life equation, Outcomes = (Belief + Emotion) + Time… Perhaps, we truly are the masters of our own destiny. we have found the answer to the meaning of life! Douglas Adams never needed to create Marvin, the Paranoid Android!

No matter how disciplined we might think we are, or how much we would love to believe we can leave our emotions at the door to make the logical decision, that is simply not always the case. We are human after all.

Our beliefs and emotions have a persuasive way of weaving their way into our behaviour through biases. As investors (and humans), it’s these behavioural biases that prevent us from achieving the optimal outcome or the best possible return.

But what if we could add another input to that equation?

+ Financial Advice

Over the next few months, a number of Viridian Advisory Advisors are going to discuss adding a financial advisor to the equation can help clients rise above bias and help you live the life that you choose.

From familiarity bias to anchoring…

Now there is some bad news… we won’t able to cover off on every bias, there is simply too many!  The good news is that our advisors will select what they believe to be some of the most biases prominent in behavioural finance. The better news is that you’ve already started just by reading this article because becoming aware of your biases can reduce their effect by up to 29%