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After you listen
Overvaluing the present at the expense of the future frequently impacts a major retirement decision.
- Learn more in the next episode of Financial Decoder. Subscribe for free today to get it on November 19.
In this episode of Choiceology with Katy Milkman, we look at a bias that has an outsized influence on decisions you make in the here and now.
- The show begins with an experiment that reveals how difficult it is to avoid the temptation of junk food—and how the power of that temptation is affected by time.
- Then, you'll hear the story of a man who spent his childhood in relative poverty but found himself wealthy beyond his dreams by the time he was a teenager. This unexpected windfall changed his life in an instant. But it ultimately became a painful lesson on the dangers of living only for the present.
You'll also hear from two heavyweights in the world of psychology and economics.
- Richard Thaler is a Nobel Prize–winning economist and co-author of Nudge: Improving Decisions About Health, Wealth, and Happiness. Thaler tells the story of how he came to discover and research this bias.
- Renowned psychologist Angela Duckworth explores some of the ways you can combat temptation and make better decisions for your future. She's the author of the bestseller Grit: The Power of Passion and Perseverance.
Finally, Katy Milkman offers additional tips to help you avoid the pitfalls of this bias: with behavioral tools such as temptation bundling and commitment devices.
Choiceology is an original podcast from Charles Schwab.
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