participants were better able to read faces in both cases. Sign up for for my email newsletter to receive more psychological hacks, investor psychology articles and a ton of cool stuff I never, ever mention on this blog. And a lot more on the psychology of investing and personal finance. When it comes to money, insula stimulation can stop your spending. Though often used in jest, the term may have more truth than many of us would like to think. Finding #2: People who make less are more generouson the small scale. Money can't buy happiness (or love). Our psychological makeup works against us, giving us reasons to put off exercising or eating healthier. When youre planning to make an exciting purchase, even if it sounds like a boring necessity, tell everyone you know and set a date to close the deal. In the long-term, however, we habituate to new things and even though they may have made us excited and happy at first, eventually the item becomes the new normal and fades into the background.
Savers are the rare ones who sacrifice plenty of gratification to make sure to get the full 100 when its available. Ask yourself questions like how much money youll need to retire, or how youll pay for your childs college education. There is a change in brain chemistry with a process addiction that's similar to the mood altering effects of alcohol or drugs. Finding #5: Poverty impedes cognitive function. Thats a really, really incredible insight into how the mind makes sense of advantage, Piff says. They were also more likely to cut off other drivers. Youve already set your budget and you have the cash to cover it, so now you can take your mind off of the expense and relax. The person who is addicted to some form of behavior has learned, albeit unconsciously, to manipulate his own brain chemistry.