Our minds love shortcuts. They save time, reduce confusion, and often keep us safe. Psychologists call them generalizations.
- “Stay away from dogs, they can bite.”
- “Don’t talk to strangers.”
- “Equities are risky.”
On the surface, these warnings help. But if we live only by generalizations, we may avoid not just harm—but also opportunity.
How Generalizations Helped Humans Survive
In his book Sapiens, Yuval Noah Harari explains that early humans survived not by testing every danger firsthand but by learning to generalize and share warnings.
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If one person was bitten by a snake, the entire community learned to avoid snakes.
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If brightly colored fruits harmed someone, people learned to stay away from all such fruits.
These shortcuts saved lives. Without them, our species may not have survived in a dangerous, unpredictable world.
So yes—generalizations serve a purpose. But here’s the catch:
What kept us alive in the wild can sometimes hold us back in modern life.
The Dog Analogy—Fresh and Real
Take the recent Supreme Court controversy in Delhi. The Court initially ordered the removal of all stray dogs from the streets, citing 2,000 bite cases every day. The order reflected a broad generalization: “Dogs are dangerous.”
But soon, reality set in. Not all dogs are harmful. Many are vaccinated, sterilized, and live peacefully in their neighborhoods. The Court revised its decision—only aggressive or rabid dogs were to be sheltered, while healthy ones would return after sterilization and vaccination.
This episode shows how generalizations may spark action, but specifics lead to balanced solutions.
The Same Lesson in Financial Life
Money is no different. We often hear sweeping statements:
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“Equities are gambling.”
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“Insurance companies never pay.”
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“Mutual funds are only for the rich.”
These beliefs protect us from mistakes—but they also block us from growth.
For example:
Equities are risky if you speculate or chase tips. But with discipline, time, and guidance, equities are the strongest wealth-creator.
Insurance claims do get rejected—but mostly because of non-disclosure. With the right advisor, claims are honored.
So, should you avoid equities just because someone once lost money? That’s like avoiding your friend’s friendly Labrador because “dogs bite.”
Why You Shouldn’t Stop at Generalizations
Generalizations are useful starting points. But real progress comes from specifics—facts, context, and trusted guidance.
Here’s a better approach:
Acknowledge the generalization (there’s always some truth).
Examine the specifics (data, personal context, expert input).
Act with clarity, not fear.
Don’t Rely on Generalizations—Get the Facts That Fit You
Generalizations can keep you cautious. But your financial success depends on specifics—your goals, your time horizon, your risk capacity.
That’s where trusted guidance makes all the difference.
📌 At WealthWisher, I help individuals move beyond “equities are risky” or “insurance never pays” to clear, personalized strategies that actually work.
👉 Book your free 1:1 Financial Freedom Call (no obligations) and see how a specific and personalized approach can help you.
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