Recently there has been a lively discussion among the Singapore Financial Blogger Scene about ‘Net Worth’ and how it should/could/may be computed (here, here, and here). This showed me how imperfect and susceptible to bias we all are.  We are all in this together facing our cognitive illusions. Let’s check out one common bias known as the Mental Accounting Bias, which is the tendency to value some money less than others. One example of this is the “House Money” effect: In the event that you are gambling at a casino (a highly hypothetical scenario, because readers of financial blogs do know that the casino always wins—having the odds vastly skewed in their favour—and that casino gambling represents negative-sum gaming in its purest form, and thus put their money to work in areas with better risk/reward ratios, and only view casino gambling as an entertainment outlet, to watch desperate people in action). Anyway, to ......