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4 Ways Your Brain Sabotages Your Finances (Without Even Realizing It)

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  • ℹ️ Description

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.








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💬 Comments on the video
Author

So many people say they spend less if they use cash because they can see the money actually going away. And I get that, but I have the exact opposite thing. If it's cash, then I already took it out of my bank account. I might as well spend it, because it's already "gone" from my account. But if I use my credit or debit card, then I'm spending money that is currently sitting safely in my account. In other words, I feel like I "spend" the money when it leaves my account, whether that is a card-based purchase or a cash withdrawal. If I have cash, that money is, in my mind, already spent. So I tend to be more careful with card spending than cash spending, weirdly enough. (Though I've heard other people say this too, so I know I'm not alone in that experience.) Of course the lesson in the end is to know your own spending habits and do what works for you.

Author — thatjillgirl

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I actually have a major anxiety-induced compulsion to check my banking app way too often, like every time I make a purchase. It's helpful, but it causes me a lot of stress. Not sure if anyone can relate.

Author — Lauren Conrad

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FOMO = fear of missing out. I'm 50 years old. I had to look it up.

Author — Michael Gainey

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3:00 1. aspirational spending
7:00 2. marketing warfare
9:50 3. retail therapy
12:50 4. abstract vs concrete

Author — ki ii

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“Maybe we even kill him for that tool!” 🤣😂😳😳😳 Well that escalated quickly!🤣😂

Author — Quest to FIRE

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Omg I love Chelsea “Give me that tool...” lol

Author — Meg M

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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 :)

Author — McKenzie Hine

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Weirdly, using a credit card feels more like spending because I keep track of my budget online 🤷. Regardless, excellent content as always!

Author — Roll0112358

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I'm now very worried.

When Chelsea first said "Give me that tool..." my brain automatically added "... or else." I'm definitely descended from the thugs that killed for other people's cool tools.

Author — Hannah Reynolds

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I never found budgeting worth a damn. It was confining, time consuming, and anxiety inspiring. I just decided what I wanted to save in order to invest, chopped that off my income, and figured out how to live on what was left. In my case I used to be poor, so it wasn't too hard when I got a good job that paid well to still live somewhat poor and dump the extra into investments. If you don't know how to do this, just understand that for every person that can live comfortably on $100, 000 a year there's another that can do the same for $50, 000 a year. For every person that can live comfortably on $50, 000 a year, there's someone who can live comfortably on $25, 000 year. (Usually it boils down to the person on $25, 000 ignoring what marketing and advertisers say they "can't live without.") Learn to live on less and you'll always have enough and eventually you'll have more and some day possibly too much.

I love the "scripts." I've run each of them at least once in my life and they don't stay away.

Author — Eric da' MAJ

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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!!

Author — Aysha Chaudhry - Property Investing

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I don't know if this is an easy fix, but the slide for #4 says #3 Retail Therapy

Author — Ashley Fredricksen

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I’ve stopped working temporarily but I still spend like I have that pay check :/ hard to break the habits formed during that time

Author — Jena Cho

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Oh, I am definitely "money will solve all your problems" type :D

Author — Figurista - Девушка с формами

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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!

Author — M H

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Unfortunate that the sponsor of this video uses the psychological tricks to get you to spend that you talk about in the video. I used Rakuten for awhile but I found I spent more because they bombarded me with "Double your cash back on GAP today! 5% cash back on your purchase ON TOP of GAP's current INCREDIBLE sale!" Just because something is putting money in your pocket does not mean that it isn't costing you.

Author — Courtney Sheffield

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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

Author — ZBird

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I wish I could do retail therapy. I have money but spending it makes me sad.

Author — Don Wald

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Bravo, Chelsea, a deeper understanding of how human brains work can be so helpful as we navigate this brave, new world.

Author — Dorit Bergen

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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 satisfies my need for retail therapy at a cheap price)

Author — ki ii