Smart People... Dumb With Money
There is a #Behavioral Economics experiment that goes like this...
People are asked...
"Would you rather have $100 a year from now or $101 a year plus 1 day from now?"
The vast majority of the people say $101. You've waited a year... what's 1 more day, plus you get the extra $1, right?
But then... when asked....
"Would you rather have $100 today or $101 tomorrow?"
The vast majority of people change their mindset and decision making #behavior and respond with "The $100 today."
Why is that?
What is going on here?
Why can people understand that when presented with a year out, we have a clear mindset about what the right thing to do is....
But when presented with NOW... with TODAY... with the PRESENT... our brains short-circuit and we want the immediate gratification.
I'm not a Behavioral Economist or a Pyschologist so I can't really give you a good answer...
I'm just observing and sharing.
But what I can tell you... people do the same thing with time.
IE - Business Plans and Goal Setting Worksheets look great. You know what you should do.... why you need to do it...
But then tomorrow comes and focus on what is right in front of us... instead of doing what we should be doing to bring us the results we desire a year from now.
Humans are a tricky little bunch, ain't they?
I personally think the trick is to slow down, reflect and review... You know the right answer, when it's presented to you in the future...
You just fail when you are only thinking about today and this moment.
To help make smarter decisions about money... find a good financial advisor... I'm meeting with mine later today.
-- Darin Persinger P.S. See Further, Think Bigger.
In today's "instant gratification", "microwave", "gimme gimme world", it's easy to be short-sighted, think small and only about today... But the future is coming and is waiting. For the future to be yours, you'll have to see further than today and think BIGGER than now.