BIAS: Financial Myopia

Posted on September 12, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By A.I. and Staff Reporters

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BIAS

Bias is a prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

MYOPIA

Myopia (nearsightedness) is a common condition that’s usually diagnosed before age 20. It affects your distance vision — you can see objects that are near, but you have trouble viewing objects that are farther away like grocery store aisle markers or road signs. Myopia treatments include glasses, contact lenses or surgery.

MYOPIA BIAS

Myopia Bias makes it hard for us to imagine what our lives might be like in the future.

Financial Example: When we are young, healthy and in our prime economic earning years it may be hard for us to picture what life will be like when our health depletes and we no longer have the earnings necessary to support our standard of living.

Irony: This short-sightedness makes it hard to save adequately when we are young … when saving does the most good.

DOCTORS: Going Broke and Living Paycheck to Paycheck!

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MOTIVATION: “Rose Colored” Reasoning

Posted on February 18, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Motivated Reasoning is the tendency to process information in a way that aligns with your desires and preconceptions. It’s like having rose-colored glasses for your beliefs.

Motivated reasoning (motivational reasoning bias) is a cognitive and social response in which we, consciously or sub-consciously, allow emotion-loaded motivational biases to affect how new information is perceived. Individuals tend to favor evidence that coincides with their current beliefs and reject new information that contradicts them, despite contrary evidence.

According to Wikipedia, motivated reasoning can be classified into two categories: 1) Accuracy-oriented (non-directional), in which the motive is to arrive at an accurate conclusion, irrespective of the individual’s beliefs, and 2) Goal-oriented (directional), in which the motive is to arrive at a particular conclusion.

Furthermore, colleague Dan Ariely PhD suggests that when we encounter any new information, we twist and turn it to fit our existing views. This mental gymnastics helps us avoid cognitive dissonance but can also lead us astray.

So, next time you’re defending your viewpoint, ask yourself: am I seeing this clearly, or is it motivated reasoning at play?

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