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◈ GLOSSARY · MONEY MINDSET

Status Quo Bias.

A definition, in plain English — with the books that teach it.

Reviewed by ClearValue Editorial Team · Jun 27, 2026
DEFINITION

What it means

Definition

The preference for leaving things the way they are, even when a better option is obvious and easy. In personal finance it shows up as never rebalancing, staying in a 0.01% savings account, or leaving an old 401(k) in a high-fee plan because rolling it over feels like work. The honest caveat: doing nothing is a decision, and over decades it's often the single most expensive one.

IN PRACTICE

Example

You leave $50,000 in a checking account earning 0.01% instead of moving it to a high-yield savings account at 4.5%. The 'cost' of inaction is about $2,250 a year — for the 20 minutes it would take to open the account.

RECOMMENDED READING

Books that explain this

The Psychology of Money
Morgan Housel
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