When you see a stock tip, do you immediately calculate: "₹100 lagaunga toh Kam se Kam ₹30 toh ban jaayenge?" (If I invest ₹100, I'll make at least ₹30.) 🧠

This habit of calculating easy, handsome returns in your mind is known as Mental Accounting Bias (मानसिक लेखांकन), and it’s Myth 22 in Chapter 3 of Sanchit Taksali's book.

In this insightful episode of The Middle-Class Mistake, we break down why this mental math—often based on minimal effort and information—is the number one reason short-term investments end up becoming long-term disappointments.

🎧 Join the conversation to learn:

• The Mental Math Error: Why thinking in easy percentages (like 10-30%) drives you to chase stocks that aren't necessary for your portfolio, leading to emotional investing.

• The "Short-Term Trap": How investments made with the quick profit motive often fail to meet expectations and are held for too long, underperforming the market index.

• The Solution: Mental calculations are only valid if they are based on in-depth analysis. Otherwise, this bias forces you to hold losses for an unnecessarily long time.

💡 The 5-Point Reality Check:

Sanchit Taksali insists you must challenge your mental math with these questions before investing:

1. Style Check: Is this investment compatible with my overall investing style?

2. Expectation: Are my return expectations realistic or unrealistic?

3. Contingency Plan: What is my plan if the investment underperforms?

4. Research Vetting: Did I rely solely on the information's accuracy, or did I conduct my own research?

5. Advisory Input: Has a qualified advisor recommended this?

🔮 Next Episode Teaser:

Now that you have your list of stocks, should you buy them all? Next time, we address Myth 23: Over-Diversifying – "Issme bhi Invest kar lete" (Let's invest in this one too), and how it minimizes your actual returns.

[ Financial Literacy | Sanchit Taksali | Behavioral Finance | Mental Accounting | Hindi Podcast | Investment Mistakes | Risk-Reward ]