4 Ways Your Brain Sabotages Your Finances (Without Even Realizing It)
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- เผยแพร่เมื่อ 28 ต.ค. 2019
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Chelsea talks about the subtle-yet-unavoidable ways our brains make our money decisions harder. From old habits to learned behaviors, our brains are not always the best suited for financial decision-making, and this video shows us how to overcome those mental obstacles.
The Four Money Types: www.onefpa.org/journal/Pages/...
Why we want what others have: www.psychologytoday.com/us/bl...
The pressure to buy: www.inc.com/magazine/201703/k...
Why our brains are bad at money: money.cnn.com/2017/11/07/pf/m...
Why retail therapy works: www.psychologytoday.com/us/bl...
The benefits of paying cash: www.investopedia.com/articles...
Watch more of The Financial Diet hosted by Chelsea Fagan here: • THE FINANCIAL DIET
The Financial Diet site:
www.thefinancialdiet.com
Facebook: / thefinancialdiet
Twitter: / tfdiet
Instagram: thefinancia... - แนวปฏิบัติและการใช้ชีวิต
In this video Chelsea breaks down how our base instincts can sabotage our financial security and how to combat that successfully. Want more tips on how to keep your brain in check ? Check out this video :th-cam.com/video/ryu67MohaXI/w-d-xo.html
TFD I got a question I'm in kinda limbo I make my own bread and cakes I been looking at a 200 dollar mixer or a bread maker I been thinking about this for months not sure witch one I save for and get ??
Also, I'm not sure if this falls into one of the four named categories, but I'd say the "toolbox fallacy" is another fast track to hemorrhaging money. This is when you feel like you need to make all kinds of purchases before you can start to pursue a hobby or interest, e.g. "I can't go to the gym until I have new sneakers, and clothes, and a water bottle, and a bucket of protein powder."
3:00 1. aspirational spending
7:00 2. marketing warfare
9:50 3. retail therapy
12:50 4. abstract vs concrete
Thank you so much for saving my time
THANK YOU!!! she got very wordy this video
Also, the last one says "retail therapy" instead of what she actually said
I get the same feeling retail therapy gives me by going to the library and picking out a few books and movies. May result in an overabundance of books and I may not get through all of them but, hey, as long as I return them in time it's all good :)
FOMO = fear of missing out. I'm 50 years old. I had to look it up.
Michael Gainey 50 & still learning tho
😊🤗
I like how there was no shaming in addressing the bad habits in this video. I totally agree many of those bad habits (aspirational spending) stem from biological and social influence, as you said. We just want to be loved and accepted. :) Thanks for the non-judgmental but informative video!!
I grew up in a household where money was open dinner time conversation. We were a firmly middle class family, not wealthy, not poor. My husband grew up in a home where money was never mentioned, ever. Fast forward to adult life... I handle all the finances, investing and day to day spending. I pay all the bills, quantify every purchase and know our spending habit intimately. My husband gets freaked out when the market drops or we have an unexpected expense. What I've learned: teach young brains not to be afraid of money and it will resonate positively in later life.
“Maybe we even kill him for that tool!” 🤣😂😳😳😳 Well that escalated quickly!🤣😂
Really needed this today. I'm a vigilant/avoidant mix and I constantly stress about money and struggle to deal with it as a concrete thing. So the latter half of the video addressing that, as well as the tactics to combat retail therapy, was really enlightening.
TFD has come a long way and i just wan to say that Chelsea Blows my mind every-time, with the continued aspiration for relatability for a majority of the population. These are real problems that real humans face.
Omg I love Chelsea “Give me that tool...” lol
I love Chelsea period
😉
Weirdly, using a credit card feels more like spending because I keep track of my budget online 🤷. Regardless, excellent content as always!
Same here!
Right? Like, once the cash is out of my account and in my hand, it feels like I’ve already spent it because it’s not adding to the number on my account.
@@invisibleninja86 EXACTLY!
As someone with a psychology background, love this informative in-depth psychological look into finance. Keep up the hard work, it's highly appreciated!
Me: I'm still struggling to meet my financial goals. Maybe there's a video on finance I somehow missed.
TFD: We got you. New video!
I love your sense of humour and relatability (and no shaming) so much. You seem like such a fun person to hang out with. This is why I can watch and learn from your videos with out the usual anxiety and through that becoming better with money and understanding my relationship with it. THANK YOU! YOU'RE AWESOME!!!!
What a gem! I just discovered your channel and cannot get enough of this money talk! Lol It’s cathartic to hear someone speak about money in such an honest way. Thank you!
I recently fell for a rather extreme FOMO deal. It was a scavenger hunt for deals in a theater ticket buying app and you had to find the coupon code at exactly 1pm each day and use the app less than a minute after finding it. If you waited until, like, 1:10, you were out of luck. I did buy some theater tickets with the code. While I don't regret the purchases and I'm excited to see the shows, I could tell that this was an extreme behavioral psychology marketing tactic that was I was falling for.
Bravo, Chelsea, a deeper understanding of how human brains work can be so helpful as we navigate this brave, new world.
This video is so insightful. I absolutely love psychology behind what the human mind does, and hearing reasons for our desires and spending habits is so interesting!!! Thank you for your hard work
I don’t know which cards folks may have but Capital One sends a push notification every time I make a purchase. This might help those that have trouble imagining that money leaving your account. If there’s a lot of dings in the day, I think “I’ve gotta do better tomorrow”
tbh feel like the easiest way to control your spending is to have depression and no have any interest in shopping anymore
(also helps that couponing has amassed a giant coupon mountain of stuff i do not want or use in the corner of my apt and ruined my desire for materialism...............or satisfies my need for retail therapy at a cheap price)
You’re so right! This topic is so on point, these advises are so helpful. Thank you TFD!
I discovered when my bank balance is low, my subconscious mind is worrying that I run out of ressources. So when I'm in a shop, I feel the urge to collect ressources like huge amounts of food, clothes, etc.
Since it would make my balance worse I resist, but it is very hard because the subconscious says: collect, collect as much as you can or you will starve!
I'm already good with money, I don't why I watch these. I think I just find listening to these videos quite soothing.
Zara Kayn it helps in reaffirming that you are on the right path... way to go!! 😊
I am the same way. I am so careful with my money and still watch these types of videos
It reinforces good habits. Good Habits are easy to break.
This is a great vid- the psychology of money and our identity issues are so wrapped up together. I find it very had to not imagine myself in an outfit that I ‘must buy’ when I have a function to attend. It takes so much more brainwork to look in your cupboard and find an outfit but once you start the habit you can find something that you are happy with. And it cost you no extra money.
Great video, Chelsea. I always feel more informed and have a better perspective after watching your content. It's also nice to concretely hear ideas that I've only thought or had suspicions about.
I love it when I feel like spending I do what you say (most of the time lol) I clean reorganize all my stuff do something really creative arts and crafty and then I see all the stuff I have already!
Great video, I listen to personal finance vodeos all the time to get new ideas and stay focused on my goals. It definately helps me along my path. Thanks for what you do!
Holy crap! That is the most adorable giggle during that farm analogy! 💞💞
It would be cool to see videos on tips for each of the money types shown at the start of the video! I am definitely the nervous money-hoarder type and I often cost myself more in the long run by being too scared to spend anything right now. Thank you for another well-researched and kindly-worded video!
Thanks for another video! I love your advice, perspective, and how you have decided to express your personal beliefs as well. I love it when you can laugh in a video too!
LOVE THIS!! Thank You for the unique perspective!!
I think this is one of the best TFD videos! So insightful!
The American stock market is similar to watching a person walk up the stairs with a yo yo. People focus on the yo yo going up and down, while the real story is the consistent movement of the person up the stairs.
ooo am I first? Love your videos.
Watching this channel has motivated me to work on my money habits. Taking baby steps to get where I want to be financially!
#1, especially near the end, can also apply to people.
Other people’s relationships can seem “perfect” from the outside, and our own relationships lose value or seem less appealing.
This is GOOOOD girl ! So glad I came across it!
Oh, I am definitely "money will solve all your problems" type :D
Figurista - Девушка с формами makes me feel safe and secure 🤷🏻♀️🤷🏻♀️🤷🏻♀️
If you are very poor, many problems would vanish if you had money. You need a certain amount of money!
the aspiration thing hit me... during the pandemic i got into make-up because it soothed me (it's artistic and creative, takes your mind off things, brushes and make up feel good on the skin etc etc) and now i'm in the beauty youtube rabbit whole. i have to remind myself that beauty gurus have ikea furniture full of make-up because they filled them up through years and most of them get half of their make-up in pr. i'm making lists of make-up i REALLY want and buying ONE item every month or other month, and i'm committing finishing the make-up i already have before i buy a similar product. if i already have a neutral colors palette, i don't need another one, no matter how hyped up the product is or how cute the packaging is. before buying a palette i ask myself 'do i already have these colours? is this unique in comparison to what i already have? will i use these colours?'. i don't need 10 concealers, 10 setting sprays and 10 blushes, it's not humanly possible to use that much make-up. 2-3 colours of blush are fine. 2 concealers are fine. i need ONE setting spray. before i buy a concealer, unless the one i have is really bad, i HAVE to finish the one i already have (which makes me more careful when buying make up - i bought the wrong shade of foundation many times, now i know that if i get it wrong that's the shade i'm using for the next two months, so i better choose it right).
nice and very useful specially psychologically. i used to use shopping as therapy. but now know better and since i live alone with the wife, i dont have to stay out. and another trick i use to avoid wastage of money is only go to stores that you have to specifically buy something from like grocery staples. i now avoid going to stores that i know i will buu something from on impulse like marshalls or winners.
I’ve stopped working temporarily but I still spend like I have that pay check :/ hard to break the habits formed during that time
I'm going through the same thing. I had a pretty decent paying job and got settled in that lifestyle. To go back to school for a year. Then being unemployed for months. It's gonna be hard work to dig myself out of this ditch and get my safety net back.
@@adamhall5332 I feel u :(( I know someone who was unemployed for 3 years then got a job that pays half what they used to get, it's rough
tip #2 made me think of this one time i was at the mall and at one of those kiosks, the people offered to curl my hair with this fancy flat iron. (i already owned a chi flat iron at home and never ever used it). but since they curled my entire head of hair, i felt compelled to buy it, and it did work very well. but when i opened my wallet and didn't have enough, they asked me how much i did have, and they gave it to me for that price. this was years ago, and im still so angry over the fact that i spent literally every last penny i had at the time to buy a flat iron that i have never used and probably never will. this is probably the number one reason i just pretend im on the phone on the very rare occasions i ever step into a mall so the kiosk people won't attack me with their smiles and weird products
it's actually easier for me to spend money if i physically have it on my wallet, because money withdrawn is money spent, so i'm spending something that was lost already... i avoid having money on me as much as i can
This was a great video. Very well done
That social contract point is so true. My fiancé refinanced his home because they gave him a chocolate. It wasn’t even good chocolate, it was Hersheys! And during wedding planning, ooh boy. You tell me why a photographer needs my love story. If we met on Tinder, do your photos look Tindery? No. You just want me to have shared something vulnerable so I can be preyed on. Boo!
I love your enunciation, your voice is like a nice cuddle to me. Greetings from Italy.
The title card for the "Abstract vs Concrete" section still says "Retail Therapy". This happens on occasion with TFD videos, you might want to have a talk with your editor.
I love your hair Chelsea
Thanks for the information!
Huge thumbs up just for that farming example.
Your videos are right on the money.
One thing that has helped me tremendously with my credit card use is paying it off on a weekly basis and making sure I’m making purchases that are within my budget for the month and paying it in full when it’s due!
Excellent video!
My imagination is running wild when I go to the hardware store or the fabric market. It is hard to resist!
I don't know if this is an easy fix, but the slide for #4 says #3 Retail Therapy
Ashley Fredricksen the beginning also says “Money Worthip”
I am not a TH-camr but I don't think it's an easy fix. Aside from fixing it, she would need to delete this video and upload the corrected one, which is a terrible idea for algorithms and views
@@lastwolf42 When money worship has a lisp.
❤️ loooved this video! #ThankYou
I find that in-app purchases on phones are the products that use behavioral psychological marketing tactics the most. On several dating apps and also phone games, I find that they often use extra sneaky psychological tricks to get you to buy.
I used to be really bad with money, then I started to use a budget app. Knowing that I'd have to write down my purchase and see my monthly entitlement shrinks, I got way more careful with it. Highly recommended.
Deniz K
If you wouldn't mind sharing, I'd love to know which budget app you are using and would recommend! 😊
@@christinelamb1167 I'd be happy to. I use Goodbudget. In fact I use it with my husband, we share an account. We pay 5 USD monthly, but I can say that it definitely pays back.
@@deniz_koz Thank you so much, I will check it out!
Great video.
Off topic, your example of the farmer made me wonder....
Have you ever seen a cow Chelsea? I have heard that many people from NY have never seen one, nor fully understand anything about them.
Love your channel, though it seems weird to have a shopping sponsor on a vid about not blowing our money...
You hair really looks good on you :)
Love this Chelsea wise🦉
Genius video A to Z 💙🙏
I wish I could do retail therapy. I have money but spending it makes me sad.
Then you have money guilt?
zucchinigreen No I’m a saver. That used to be considered prudent.
@@donwald3436 So you're humblebragging?
Oh, cool story bro.
zucchinigreen I’m unhappy. If you envy that you’ve got issues.
Hey TFD team! As a long time fan (like 3+ years at this point, reading and watching basically everything you guys put out) I'm disappointed in the amount of typos I've seen recently. I've come to expect them on writer submitted stories on those not written by TFD staff. But even in a TFD video graphic?? Guys! Be careful! (She says lovingly.)
I was thinking about adding the same comment!
We appreciate your feedback and will be more diligent moving forward.
Can you do a video about how anxiety/stress affects our financial life?
The sale thing is for real. I sort of backed off my normal shopping budget to fund a vacation. So i have noticed how often there are sales. And now i have no problem saying nope thats not enough of a discount cause i know at some pt the sale will happen again. Same w sephora.
I love sassy Chelsea lmao
Oh dear god, I used to be such a sucker for marketing warfare (probably still am to some extent, but I have learned to say no most of the time). The worst example was when I actually signed up for a credit card _at an airport_ , just because the salesperson had spent like five minutes talking about it and I didn't want to be a jerk. I ended up cancelling that card like two months later; funnily enough, the person before me at the bank was doing the exact same thing :)
11:01 Chelsea's trying not to laugh. haha!!
“Give me that tool!” LOL
Yay Chelsea!
Everything that you said is what I’ve been observing in my thoughts and actions :/
that credit card thing is so true, im struggling with that one right now
I really like that copper ornament on the table on the left in the video. Does anyone know where I can buy one?
2:22. i love this channel but I can't ignore a good slip-up
The thing with the credit cards its soo true, i dont think that i only have x amount im my bank account, i add those 2k from my credit card too
So i decided to only use my credit card for thing that i would usually spend money on like gas, food etc
My credit its great and i don't stress about bills because i pay it full every month
Long mueder story short. 😂 Love this channel.
Fascinating
Is it possible to fix a tiny error? The title card for #4 was a duplicate of #3, and says "#3 Retail Therapy."
thanks. I feel like Europeans generally don't abuse credit cards as much, but just the later bill tempts me to overspend. and I try to avoid using my credit card. And I will try to use more cash when possible
I grew up poor so I save my money because I know what it is like to have the bare minimum. Furthermore, I have issues with money (my issue is that I consider it to be finite) and only particular things because I didn't have them growing up. It is a scarcity resource mentality. I didnt have alot of clothes when growing up, I had a capsule wardrobe before it was cool. People at school noticed so I overcompensate now. I am getting way better but I have room to do better. I am never a sucker for marketing or free deals as I don't fall into their dumb sales gimmicks. You can call me a mooch in that regard.
Shouldn’t it say “worship,” not “worthtip.”
Sad the section labels were a bit off
MONEY WORTHIP
I do feel more swipey with the card vs the pain of the cash.
Best way to treat credit cards do not use your debit card at all if your limit is high enough and within your spending budget. Pay it off from your checking as soon as you use ( I recommend weekly paying it but you can do daily) monitor your balance at least weekly you can pay it before the bill is due and is heavily advised to do so. And finally just treat you credit card as a bill every month I have to pay this off every month how much can I afford to pay and set yourself to that budget on your credit card once you reach it stop using it. And pay it off when the bill is.
I'm credit management my limit is higher than my monthly spending so I only use you my credit card for all all my purchase I monitor my balance at least weekly but it's more like daily or at least sometime soon after I used it. I do not even though my checking but once a month were I pay my rent and my credit card bill and then more allowing the funds to collect in my checking account and I monitor my credit card usage working every swipe or online payment into my budget even luxury/superfluous spending if I do any of that which I try not to. Credit card usage is 100% a mental game you play with yourself beat yourself on the right way and their are perks and advantages to managing good credit beat yourself on the wrong way and you put yourself in the preverbial hole.
1:46 discrete or discreet ?
Worthip.
4:20 One thing ill admit after I droped Instagram my mental helth went up. Only using messages and calls no other social media.
Your brain, he or she is mean
Me: *they*
Right! I was like...if you're going to gender the brain, you might as well use they.
I did the same thing 😂 I do it when I read too
Lesbian Amazon Sister literally why did you feel the need to comment that
@Lesbian Amazon Sister that is not correct
Unfortunately today it is my car sabotaging my finances... I envy people who live in places with public transportation!
My credit limit on my main credit card is lower than the money I have saved, so I try to think that I only have the credit card amount at my disposal and therefore less money available to me. Just hope my credit limit doesn't increase any time soon. It hasn't increased in years...probably because I don't use it much.
1:40 Money worthip
This should be TED talk
Money Vigilance! I'm going to have to learn more about this! It suits me exactly
I have none of these problems lol but then again no one influences me to spend.
👀👀 i have to stop my car on the highway and 👀
Sorry, but shopping is not therapeutic. Also, isn't it dopamine not serotonin that is released when buying new items?