Your blind spot
We are better at predicting others’ actions than our own, research shows. The concept of “misguided exceptionalism” suggests we consider ourselves exceptions to psychological effects and issues that we recognise easily in other people. We typically think our own actions are deliberate, with other folk shaped more by external factors, such as environment or culture.
Lotteries may be wonderful for winners but they can be actually dangerous for those who live next door, as Bloomberg reports. Studies show that near neighbours of big-prize lottery winners are more likely to spend excessively, investing in risky assets and borrowing more money. Eventually, they might even become bankrupt.
Who saves more?
Saving has long been particularly important in Germany, where reside some of the keenest savers in the world. OECD data reveals that in 2015 people in Germany typically saved an equivalent of 9.96% of their disposable incomes while the British saved only 0.16% of theirs. Without savings, there is no financial buffer and a higher chance of money problems.