New Neuroscience Study Reveals What Worry About Money Does To Your Brain - 0 views
-
These findings suggest more evidence for why heuristics, or rules of thumb, are both so effective and ubiquitous. Consider a few from the financial world: Pay yourself first. Sell in May and go away. Buy and hold. Only use the principal. Buy low, sell high. The list could go on and on.
-
It’s no surprise that financial stress is draining. Anyone who’s worried over a budget or fretted about making the wrong investment choice or major purchase can recognize the telltale signs of such anxiety. But what’s actually happening to your brain when you feel under such pressure?
-
New research conducted by neuroscientist Sam Barnett, co-founder of ThinkAlike Laboratories and sponsored by Northwestern Mutual, offers a rare glimpse at the brain while it is making financial decisions—and finds that anxiety actually impairs our ability to make sound decisions.
- ...1 more annotation...
-
Our brain was designed to make binary decisions—fight or flight—and avoid dangers,” Barnett says. But modern life with its ample choices and options doesn’t match how our brains naturally process information—explaining some ultimately self-defeating reactions such as impulsivity or inaction.