Behavioral Finance

Hedonic adaptation is a term used to describe the human tendency to quickly adapt to new circumstances and revert to a baseline level of happiness, regardless of changes in wealth or personal circumstances. This psychological phenomenon has significant implications for personal finance, as it can influence both savings and investment decisions. In this article, we’ll delve into the concept of hedonic adaptation and discuss strategies for overcoming its potential pitfalls in order to achieve long-term financial success. [Read More]