Affluent Savvy
Affluent Savvy
Photo: cottonbro CG studio
They found evidence that anticipating paying with money (making the decision to purchase) did indeed activate pain processing regions in the brain, albeit those were associated with higher-order, affective pain, and not somatosensory (i.e., physical) pain.
Black Black is a very popular color for wallets and luckily, this symbolizes prosperity and wealth. If you are looking to advance your career or...
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The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.
Learn More »If there is one thing behavioral research has taught us, it is that human behavior is not always rational. Our judgement and decision making skills are fallible, and based on context, can fluctuate. Take, for example, how our brain understands money. We make 35,000 decisions each day, often in environments that aren’t conducive to making sound choices. At TDL, we work with organizations in the public and private sectors—from new startups, to governments, to established players like the Gates Foundation—to debias decision-making and create better outcomes for everyone. Mental accounting, which plays an instrumental role in helping us make financial decisions, explains how we treat money differently (place it under different categories) depending upon its source and its intended use. A classic explanation of the concept uses the example of movie tickets: "Imagine you just arrived at a theatre and as you reach into your pocket to pull out the $10 ticket you purchased in advance, you discover that it’s missing. Would you fork over another $10 to see the movie? Compare that to a second scenario in which you did not buy the ticket in advance, but when you arrive at the theatre, you discover you had lost a $10 bill on the way. Would you still buy a movie ticket? " Kahneman & Tversky (1983) used this hypothetical in their research, and although in both cases the amount of money lost equals $10, more people (88%) were willing to buy a ticket in the latter case, compared to the former. The 44% who were willing to replace the missing ticket in the first scenario felt the cost of watching the movie had doubled, since it was drawing from the money (mentally) allocated for movies, which was not the case with the lost cash. Mental accounting also explains why small windfall gains, like a $50 lottery win, or gift cash from a friend, are more likely to be spent easily, as they are considered unexpected gains, rather than regular income. By creating mental accounts, we essentially ignore the fact that money is fungible, i.e. that all money is the same, and interchangeable. The phenomenon also helps us understand why we tend to treat credit card payments differently from cash payments. First, credit cards “decouple” the purchase from the payment, by separating the two and delaying the payment to a later point in time. Second, they makes individual costs less salient; a $50 purchase on a $1000 bill has less impact than a $50 purchase by itself. This has its basis in loss aversion – that is, in our mind, losses are more salient than gains, and we usually seek ways to make them less noticeable, which is why credit cards are useful. Mental accounting is just the tip of the iceberg; there are several other forces shaping our financial decisions. One key game-changer in the psychology of money is the mode of payment. In this article, we will explore two common forms of payments – cash and credit cards. We will also look at how concepts like opportunity cost, pain of paying, and others, factor into our decisions under the two contexts.
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The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.
Learn More »Hindus in the ancient times strongly believed that the vibrations of a diamond render a very positive aura to many organs of the body and brain and heart in particular. Other healing powers of diamonds also include protecting the owner from driving away bad dreams, fight depressions and preventing apoplexy.
Diamond is a precious stone of miraculous abilities and exceptional power. It is the king among gems and that is why the Greeks named the stone "adamas", which means indestructible and invincible. This beautiful stone is generally colorless and exhibits pale hues of pink, blue, yellow, brown and grey colors. Diamonds with brighter colors are unique and they invariably attract a large amount of admiration and invariably attract huge appreciation and acquire detailed and individual descriptions.
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The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.
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