You are in an online store on the internet, and you are eager to buy something. And that thing is a bit expensive in terms of the amount in your bank account, but at the moment it has become the most important thing in the world for you. And you wonder what would happen if the price went up and you lost the opportunity to buy it. Or what if it\’s over? In this emotional state, you calculate in your mind and decide to buy it. You do not even have to enter your bank card number because it is already stored in your computer browser. All you have to do is press the button. But after a few days, you start to regret it, or even worse; you go into debt. Its research about the Brain make us poor.
Recent research and studies in behavioral economics and neuroeconomics have shown that situations in which we make irrational decisions often harm our financial health. But what are our most common financial mistakes in this regard, and how can we avoid being fooled by our \’mind\’? A good way to do this is to understand what habits we can adopt in our daily lives.
Are you a conscious person?
Unconscious decision-making, which does not happen logically, is considered a defect and therefore is not part of this research. But in the late 1970s, a group of researchers conducted a study looking at the shortcomings that revolutionized the world of economics.
More research was done in the 1980s. Behavioral economics and the techniques of neuroscience and neuroeconomics were used. The study looked at how a person reacts when they decide to buy something unnecessary.
\”Now it is possible for us to open the black box that economists call the decisions of the human mind,\” says Professor Renata.
If you look at it, you will understand what is going on in a person\’s mind when making decisions.
\”When you read Neuroeconomics, the idea is that we can control our attitudes, our decision-making, and what we do will end,\”
she said. Because the motivations for decision-making are not logical, rational, and analytical, these decisions are very much emotionally charged.
Also Read: 10 Most Common Bad Habits and How to Break them
Learn Your How Emotion Efforts
First of all, it is good to know that emotions and feelings do not always have to be bad. On the contrary, they are essential to our survival.
\”Nature has given us both love and logic, and they are not in vain,\”
But it is also a fact that emotions cause us to make serious mistakes that push us into remorse or debt. In this sense, Behavioral Economics and Neuroeconomics can be beneficial for us to account for our irrational decisions and avoid making wrong decisions.
The First Step is To Learn Not To Say It Yourself
\”Don\’t make hasty decisions until you can see that later regrets will ruin your party.\” Understand your future better and understand your needs and requirements. Not telling yourself is like denying a child; it\’s hard, but it\’s positive. \’
\”When dopamine enters the bloodstream, it stimulates our thinking without thinking. How did it work? You hope to achieve something. It can be a good impression on wealth, health, pleasure, or others. And this emotional attitude instills in you a desire to receive this reward immediately.
An example of this is the use of methods that are often used in games during the shopping process. That is, the task of shopping has been turned into a game. Supermarkets and online shopping apps promise rewards, such as discounts or freebies, in exchange for a certain number of purchases and points.
Don\’t Do Calculations in Your Mind
But even before the purchase, these wrong decisions can be avoided.
\”It\’s hard to get into debt when you know exactly what your financial situation is,\” says Renata Teviros.
\”It is important for everyone to have the courage to know about the financial situation and keep an eye on their accounts. Many people say that it is difficult, but after doing so, they feel good. If you are afraid to look at them, you can fall into all sorts of mental traps. One of them is \’calculation in mind\’. Most of the mental calculations we make about our financial situation are wrong.
Take care of \’Your Future\’
One of the most important decisions we must make is to think about and plan for our future. Unemployment, informal business, and inflation make it extremely difficult for people in many countries. But why is it so difficult to do so when the conditions are right? One of the economic factors, \’intertemporal discounting,\’ may help to understand this. \”Pick up a telescope and hold it upside down,\” says Renata Teviros. What will happen? The farther away it will look smaller, and the closer it will get bigger.
\”We need a reward right now, right now, because it looks bigger than the benefit that is in the future and is hidden from us, which we don\’t know about.\”
Learn to say \’yes\’ to yourself
Neuroscientist Alvaro Makhadu Dias warns that you must also allow yourself where it is important to save money. \”Don\’t think that allowing yourself to spend is always bad, and don\’t get caught up in the misconception that it\’s important to keep yourself happy. Today we see a sea of people who have no desire to live. According to Alvaro, our decisions about life, whether economic or not, are not always logical and should not be. \”Sometimes we are overwhelmed by emotions, and in fact, it can lead to bad consequences, including regret.\” \”But logical decisions produce good results for our group, our species, and our society.\” So the advice is that you need to know where to use your energy and your
\”It\’s not the time, nor is it reasonable for you to start judging your decisions logically,\” he says. You have to choose your battle. Consider the options that are most important to you. These are the things that make you famous.