Money & Human Nature
When we have painful decisions, it is only normal to delay. It is human nature. For you to journey to financial independence, you must change your money mindset. You must be aware of your default reaction and consciously make a change. Change how money decisions are made.
Think of your last painful or difficult decision. Whether it was a decision that would have resulted in conflict or one that would have caused you to make a sacrifice, it is only natural for you to delay. Our first reflexive action is to avoid making difficult decisions. This reflexive action typically results in employing a delay tactic where other decisions are made but not the ultimate decision. We make difficult decisions only when we must make the decision.
With money decisions, the same occurs. The science behind it all is undeniable. Let us use the example of shopping vs saving.
Shopping
The neurotransmitter dopamine surges when you are considering buying something new. This dopamine surge is a result of purchasing the new item and the anticipation of getting that new item immediately. With online shopping, the dopamine surge is on another level. For online shoppers, there is the joy of making the purchase, the anticipation of getting the new item, the built up anticipation of receiving that item and receiving that item in the mail. Shoppers are therefore more excited when their online purchases arrive in the mail than when they buy things in store. As such, online shopping can be as exciting or more exciting as in store shopping.
As you can guess, the retail industry is acutely aware of this effect and take the necessary steps to exploit our biology.
Saving
When saving for a long term goal or financial independence, we do have some dopamine release related to attaining that financial target. However, saving falls into the category of delayed gratification. For delayed gratification, dopamine signaling declines as the delay to the large reward increases. As such, the thought and planing related to having financial independence is gratifying. However, because of the long time period between the thought of financial independence and having actual finical independence, we typically do not carry through on our plans.
This is why we spend so easily but find it so difficult to save. We all know that we should save and invest for the future, but very few do.
Saving for the long term is counter to our biology.
Remedy
In view of our natural reaction to delayed gratification, to achieve financial independence, we must consciously realize our default actions and change our mindset.
Based on the science of our reward system, we are more likely to succeed on our journey to financial independence if we have a long term goal (financial independence), intermediate goals, but also short term goals. The short term, intermediate and long term goals allow for short term, intermediate and long term dopamine fueled rewards.
Conclusion
When we have painful decisions, it is only normal to delay. It is human nature.
For you to journey to financial independence, you must change your money mindset. For a more successful financial journey, create and achieve your short term and intermediate goals on your journey to financial independence.
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