What is Behavioural Finance?

What is Behavioural Finance? Behavioural finance refers to studies upon psychological factors in the decision-making process about financial matters. Traditionally speaking, theories do take into account that humans are rational beings, behaving sensibly, and in their own best interest. The thing is, a living person behaves just like that. In most cases, decisions may be explained by some bias, sentiment, or social influence. Behavioural finance points out such tendencies and teaches you how to remove them from financial planning. Applying it to retirement planning makes it possible for you to come up with more rational, disciplined, and effective decisions toward your old age.