Monday, October 07, 2013

This Is Your Brain On Money


Money has the power to stir emotions and create drama fitting for a Shakespearean play. A raise in your salary gives you joy, but misery comes if you gamble your money away. You don't mind risk taking because it paves the way to future success, but you're panic-stricken when you lose money invested in stocks.

Then there is greed, one of the seven deadly sins in early Christian writings and the subject of a painting -- "The Seven Deadly Sins and the Four Last Things" -- that depicts greed as misers being boiled in a pot of gold.

Your brain wants you to be safe and alive, so it makes you go after basic human needs like food, shelter, love and the safety of a social group, i.e., family. But when you want to make money -- which often involves risk taking and calculating probabilities -- your brain doesn't necessarily feel safe.

Our brains are cravers: chocolate, ice cream and even alcohol. The brain doesn't want to bother with futuristic, "maybe" rewards. But the wise and smart parts of our brain will say: "Hold on, wait a minute, let's reassess" before we make a decision.

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