The Psychology of Money

The quality of our decisions significantly impacts our lives. Good decisions keep us out of trouble while bad decisions mire us in misery. Or at least that’s the common perception. Like most things in life, it’s more complicated than that. Judging the quality of a decision requires more effort than just observing the outcome. Good decisions can yield undesirable outcomes and bad decisions can produce desirable ones. Some factors that we must consider when judging a decision are the amount of information we had at the time of the decision, the quality of that information, the decision making process, likelihoods of certain outcomes, and, of course, luck.