You're at an online store on the Internet and you're eager to buy commodity. And that thing is a bit precious in terms of the quantum in your bank account but at the moment it has come the most important thing in the world for you.
And you wonder what would be if the price went up and you lost the occasion to buy it. Or what if it’s over?
In this emotional state, you calculate in your mind and decide to buy it. You don’t indeed have to enter your bank card number because it’s formerly stored in your computer cybersurfer.
All you have to do is press the button. But after a many days, you start to lament it or indeed worse, you go into debt.
Recent exploration and studies in the field of behavioral economics and neuroeconomics have shown that situations in which we make illogical opinions frequently harm our fiscal health.
But what are our most common fiscal miscalculations in this regard and how can we avoid being wisecracked by our’ mind’?
A good way to do this is to understand what habits we can borrow in our diurnal lives.
Are you a conscious person?
Renata Taviros, professor of neuroscience and neuroeconomics at the Foundation Institute of Administration of Brazil, says And he’d like to ameliorate his interests as much as possible.
Unconscious decision- timber, which doesn’t be logically, is considered a disfigurement and thus isn’t part of this exploration.
But in the late 1970s, a group of experimenters looked at the failings and conducted a study that revolutionized the world of economics.
This was followed by the Department of Behavioral Economics, which was presented by a psychologist, Daniel Kahnman, a 2002 Nobel Laureate.
Explaining this, Professor Renata explains”This exploration has led to the debate that we should realize that some other factors also impact our decision- making power and that it’s only for benefit, good health and maximum functioning.”Not at each.’
Further exploration was done in the 1980s. Behavioral economics and the ways of neuroscience and neuroeconomics were used.
The study looked at how a person reacts when they decide to buy commodity gratuitous.
“Now it’s possible for us to open the black box that economists call the opinions of the mortal mind,”says Professor Renata. In fact, if you look at it, you’ll understand what’s going on in a person’s mind when he starts making opinions.
“When you read Neuroeconomics, the idea is that we can control our stations, our decision- timber, and what we do will end,”she said. Because the provocations for decision timber aren’t logical, rational and logical in nature. These opinions are veritably important emotionally charged.
Learn to say no
First of all, it’s good to know that feelings and passions don’t always have to be bad. On the negative, they’re essential to our survival.
“Nature has given us both love and sense, and they aren’t in vain,” said Elvaro Makhado Dias, a professor and neuroscientist at the Federal University of Sao Paulo. When you’re impassive, you don’t feel for others. Our opinions come more selfish and this society as a total is ruined.
But it’s also a fact that feelings make us make serious miscalculations that push us into guilt or debt.
In this sense, Behavioral Economics and Neuroeconomics can be salutary for us to regard for our illogical opinions and avoid making wrong opinions.
The first step is to learn not to say it yourself.
“Do not make a hasty decision unless you can review it so that latterly regrets do not hurt your party,”Elvaro advised.
Understand your future better and understand your requirements and conditions. Not telling yourself is like denying a child, it’s hard, but it’s positive.’
According to Renata Taviros, the handicap to stopping such a response is actually due to the increase in easy payment styles.
QR canons and credit cards used on websites are exemplifications of this.
In addition, the whim-whams hormone dopamine, which gives the brain a’ sense of price’, interferes.
“When dopamine enters the bloodstream, it stimulates our thinking without allowing.
How it works?
You hope to achieve commodity. It can be a good print on wealth, health, pleasure or others. And this emotional station instills in you a desire to admit this price incontinently.
An illustration of this is the use of styles that are frequently 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 prices, similar as abatements or gifts, in exchange for a certain number of purchases and points.
Taviros points out that similar bad opinions 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 plant that one in four Brazilians (25.6) couldn’t pay their debts this month.
“We’ve serious problems in Brazil and all these effects that motivate us to buy are aggravating the situation.”
Thus, to avoid similar reckless decision timber, it’s judicious to’ turn around formerly’before buying anything.
She says’I frequently stick a sticker on consumers’ credit cards that says’ Go a little further, stay a nanosecond, breathe.’
This chemical has an effect on time and soon the feeling of’I really want it’disappears and the person concludes that he can use the plutocrat away.
Do not do computations in your mind
But indeed before the purchase, these wrong opinions can be avoided.
“It’s hard to get into debt when you know exactly what your fiscal situation is,”says Renata Teviros.
“It’s important for everyone to have the courage to know about the fiscal situation and keep an eye on their accounts. Numerous people say that it’s delicate but after doing so they feelgood.
However, you can fall into all feathers of internal traps, If you’re hysterical to look at them.
One of them is’ computation in mind’. Utmost of the internal computations we make about our fiscal situation are wrong.
“Wecalculate.However, I can spend 50 in the supermarket, 20 in the bar,”If I earn a hundred.
In addition, I’ll have 15 other charges. So you compare 15 with a hundred and 10 with a hundred, but this computation does not work. Also it turns out that the menial is at a loss.
All you need to do is write down your charges. If you write down all your earnings and all your charges easily also you’ll have an accurate estimate of how important plutocrat you can spend.
Take care of’your future’
One of the most important opinions we must make is to suppose and plan for our future.
Severance, informal business and affectation make it extremely delicate for people in numerous countries.
But why is it so delicate to do so when the conditions are right?
One of the profitable factors,’intertemporal discounting’, may help to understand this.
” Pick up a telescope and hold it upside down,”says Renata Teviros.
what will be?
The further down it’ll look lower and the closer it’ll get bigger.
“We need a price right now, right now, because it looks bigger than the benefit that’s in the future and is hidden from us, which we do not know about.”
Neuroeconomic studies show that when we suppose about saving plutocrat for the future, the same corridor of the brain that spark the idea of giving plutocrat to a foreigner come active.
For illustration, if the magnitude of an earthquake is five on a scale, it’ll be ten times more important than a four magnitude earthquake and it’ll emit 31 times further energy.
This shows that for our brain, saving plutocrat for the future and giving the same plutocrat to someone differently is equal.
According to Renata Teviros, one result is to produce a little’ trouble’within yourself that can help you suppose better about your own future.
‘One of the effects I frequently do is use apps that make you look aged. This will allow you to associate yourself with the image. Also you have to suppose about what you want for that person. So you make a internal connection between yourself and your future.
Learn to say’yes’to yourself
Neuroscientist Elvaro Makhadu Dias warns that where it’s important to save plutocrat, you must also allow yourself.
” Do not suppose that allowing yourself to spend is always bad, and do not get caught up in the misconception that it’s important to keep yourself happy. Moment we see a ocean of people who have no desire to live.
According to Elvaro, the opinions we make about life, whether profitable or not, aren’t always logical and shouldn’t be.
” Occasionally we’re overwhelmed by feelings and in fact it can lead to bad consequences, including remorse.”
“But logical opinions produce good results for our group, our species and our 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 opinions logically,“he says. You have to choose your own battle. Consider the options that are most important to you. That is the decent thing to do, and it should end there.”
Partner Content BBC Urdu