Finances are more than figures; it’s deeply tied to our psychology and habits. Uncovering the behavioral aspects of finance can reveal new insights to better finances and wellbeing. Have you ever wondered why you’re compelled by special offers or find yourself driven to make quick financial choices? The answer can be found in how our brains are triggered financial triggers.
One of the primary influences of spending is the desire for quick satisfaction. When we make a wanted purchase, our psychological system releases the “feel-good” chemical, generating a fleeting sense of pleasure. Retailers capitalize on this by promoting limited-time deals or shortage-driven marketing to create pressure. However, being knowledgeable of these triggers can help us stop and think, evaluate, and make more deliberate financial choices. Fostering behaviors like delayed gratification—taking a day before completing a transaction—can lead to better decisions.
Psychological states such as worry, finance careers shame, and even boredom also impact our money choices. For instance, a FOMO mindset can lead to high-stakes spending, while feeling guilty might lead to unnecessary expenses on thoughtful gestures. By cultivating mindfulness around money, we can sync our financial choices with our future aspirations. A sound financial state isn’t just about saving money—it’s about analyzing spending drivers and using that knowledge to make empowered choices.