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[Behavioral Finance: Psychological Influences On Financial Decisions] Behavioral Finance Explores How Psychological Factors And Cognitive Biases Influence Financial Decisions, Often Leading To Irrational Choices Such As Overspending Or Avoiding Losses. Experts Identify Common Biases Like Loss Aversion, Overconfidence, And Herd Mentality. To Improve Financial Decisions, Recommended Strategies Include Setting Clear Savings Goals, Tracking Financial Progress, Pausing Impulse Buys, And Regularly Reviewing Personal Finances.
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