This money bias is 'the biggest barrier to building wealth,' says financial psychologist

It's officially the time of year when you get around to that thing you've been putting off. And for millions of Americans, that means coming to grips with their finances.

If you've been avoiding funding your 401(k) or opening a brokerage account, you're not alone. Nearly half of U.S. adults — 48% — report owning no investable assets, according to a 2024 survey from Janus Henderson.

And for many, the reasoning behind the procrastination is simple: Investing is (seemingly) too complex.

It's a pattern of thinking that, if not overcome, could cripple many young people financially, says Amos Nadler, founder of Prof of Wall Street and a Ph.D. in behavioral finance and neuroeconomics.

"It's a bias that we call 'complexity aversion,'" he says. "And it's the biggest barrier to building wealth for people who are not in markets or who have never invested before."

Here's how this cognitive bias could be costing you money.

On a very basic level, people who put off doing essential financial tasks have the same fears as those who can't bring themselves to start an exercise routine — they don't want to make a mistake or feel foolish.

Just as someone might say they don't know the first thing about how all that fancy gym equipment works, a financially avoidant person might say, "'Man, this is over my head,'" says Nadler. "'I'm just not a numbers person.'"

Feeling this way about money is tied closely with another common cognitive bias known as risk aversion. Essentially, not only are you afraid you'll screw up, but you fear that you'll lose out on money you put time and effort into accumulating. And because fear of losing what you have can outweigh the joy of building wealth, you stay put.

The impulse is, "I've worked hard for it, and I'm risk