Research in psychology and economics has firmly established the field of behavioral finance, explaining why we predictably or habitually do what we do when it comes to money even when the decisions oppose our economic best interest.
A growing body of financial research points to how differences in behavior cause differences in the way individuals approach certain money-related situations.
Does your brain affect your bank account?
A lot of financial mistakes can be reduced by improving financial knowledge and developing better practices. Yet our subconscious still plays a role in our money decision processes. Having money knowledge is important but it is not the only essential aspect of our personal finances that we should understand. Even in feeling fairly competent in financial matters we are susceptible to making economic behavioral mistakes that have unintended and life-affecting consequences.
The good thing is that in being aware, we can become more conscious of how we’re making decisions. Additionally there are strategies and practices that help mitigate the emotional influences that affect our decision process. Our Steps to Strides resource incorporate an understanding of ways to include these strategies as part of managing your overall finances