Recent Research And Studies in 2021, That How Our Brain Makes Us Poor

Recent research and studies, That how our brain makes us Poor. You are at an online store on the Internet, and you are eager to buy something. And that is a bit expensive considering the amount in your bank account, but now it has become your most important thing. 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 and decide to buy it. You do not 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. Recent research and studies in behavioral economics and neuroeconomics have shown that situations in which we make irrational decisions often harm our financial health.

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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 daily.

Are you a conscious person

Renata Taviros, professor of neuroscience and neuroeconomics at the Foundation Institute of Administration of Brazil, says: And would like to improve his interests as much as possible. 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 looked at the shortcomings and conducted a study that revolutionized the world of economics.

This was followed by the Department of Behavioral Economics, presented by a psychologist, Daniel Kahnman, a 2002 Nobel Laureate. Professor Renata explains this: “This research has led to the debate that we should realize that some other factors also influence our decision-making power and that it is only for benefit, good health, and maximum functioning.” Not at all. ‘

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 we can 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 he starts 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 emotionally charged.

Learn To Say No

First, 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,” said Elvaro Makhado Dias, a professor and neuroscientist at the Federal University of Sao Paulo. When you are emotionless, you do not feel for others. Our decisions become more selfish, and this society is ruined.

But it is also a fact that emotions make us 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.

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“Don’t make a hasty decision unless you can review it so that later regrets don’t hurt your party,” Elvaro warned. Understand your future better and understand your needs and requirements. Not telling yourself is like denying a child; it’s hard but positive. According to Renata Taviros, the obstacle to stopping such a reaction is the increase in easy payment methods. The QR codes and credit cards used on websites are examples of this.

In addition, the nerve hormone dopamine, which gives the brain a ‘sense of reward,’ interferes. “When dopamine enters the bloodstream, it stimulates our thinking without thinking. How does it work? You hope to achieve something. It can be a good impression of wealth, health, pleasure, or others. And this emotional attitude instills in you the desire to receive this reward immediately.

An example is the use of methods 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 reaching a point by purchasing a certain number of items.

Taviros points out that such bad decisions can be attributed to the huge debts owed to citizens in Brazil. An August 2021 study by the National Confederation of Commerce, Services, and Tourism found that one in four Brazilians (25.6%) could not pay their debts this month. “We have serious problems in Brazilians, and all these things that motivate us to buy exacerbate the situation.”

Therefore, to avoid such reckless decision-making, it is advisable to ‘turn around once’ before buying anything. She says: ‘I often stick a sticker on consumers’ credit cards that says ‘Go a little further, wait a minute, breathe.’ This chemical affects time, and soon, the feeling of ‘I want it’ disappears, and the person concludes that he can use the money elsewhere.

Do not calculate in mind.

But even before the purchase, these wrong decisions can be avoided. “It’s hard to get into debt when you know exactly your financial situation,” 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 it is difficult but feel good after doing so. If you fear seeing them, you can fall into mental traps. One of them is ‘calculation in mind.’ Most of the mental calculations we make about our financial situation are wrong. “We calculate. “If I earn a hundred, I can spend 50 in the supermarket, 20 in the bar, and only ten on food.

In addition, I will have 15 other expenses. So you compare 15 with a hundred and 10 with a hundred, but this calculation doesn’t work. Then it turns out that the servant is at a loss. All you need to do is write down your expenses. If you write down all your earnings and expenses, you will have an accurate estimate of how much you can spend.

Take care of ‘your future.

One of the most important decisions we must make is to think about our future and plan for it. Unemployment, informal business, and inflation make it extremely difficult for people in many countries. But why is it so difficult 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 because it looks bigger than the benefit that is in the future and is hidden from us, which we don’t know about.” Neuroeconomic studies show that when we think about saving money for the future, the parts of the brain that activate the idea of ​​giving money to a stranger become active. This shows that saving money for the future and giving the same money to someone else is equal for our brains.

According to Renata Teviros, one solution is to create a little ‘effort’ within yourself to help you think better about your future. ‘One of the things I often do is use apps that make you look older. This will allow you to associate yourself with the image. Then you have to think about what you want for that person. So you make a mental connection between yourself and your future.

Learn to say ‘yes’ to yourself.

Neuroscientist Elvaro Makhadu Dias warns that while it is important to save money, you must also allow yourself. “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 Elvaro, the decisions we make about life, whether economic or not, are not always logical and should not be. “Sometimes we are overwhelmed by emotions, which can lead to bad consequences, including regret. But logical decisions produce good results for our group, species, and society.”

So the advice is that you need to know where to use your energy and your worries. “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.