This story originally appeared on NewRetirement.
Your brain is not necessarily set up in a way that makes it easy to plan a secure retirement. You have cognitive biases — faulty ways of thinking that are unfortunately hardwired into your brain — that work against you.
Behavioral finance and behavioral economics are the study of these phenomena. Understanding behavioral finance and your natural cognitive biases can increase your wealth and happiness.
Becoming aware of these behavioral finance tips can help you do a better job planning and saving for your retirement. Following, we also offer specific tricks for overcoming each of the misguided thought processes.