We all know that our morning coffee or shop-bought lunch adds up over the working year, but it’s difficult to remember that when you’re suffering from an afternoon sugar low
or facing sandwich-making late in the evening.
Kahneman and researcher Amos Tversky, have published research in this area and called this “Present Bias”, which is the idea that more emphasis is placed on immediate rewards than long-term goals.
For example, that tasty looking slice of cake at your local coffee shop will take precedence over keeping the money and putting it towards a long-term savings goal, like paying for a holiday or saving for a home.