Don’t worry if you’re bad with money. Neuroscientific research indicates that it may not actually be your fault, so suggests a new report from Chase Blueprint. “Born to Spend? How Nature and Nurture Impact Spending and Borrowing Habits” indicates that some people are simply better wired at self-control.
Apparently, “Only 25% of us are born with the ‘good’ variant of that gene,” so says report author Dr. Hersh Shefrin.
However, science also shows that nurture can get the better of nature. Putting in place good habits is a key strategy to getting the best from your money. Borrowing from Learnvest’s list, here are a few interesting approaches on how to make the most of this:
Adopt a New Mantra
Ensure that you have in place heuristics, or rules of thumb, that empower your finances rather than detract from them. So if your rule of thumb is to shop whenever you are sad, have a think about what impact that could have long term on your finances.
Make Saving a No-Brainer
The less you have to actively think about a financial decision, the less chance there is for temptation to derail the process. By having money deducted directly from your salary, there’s less likelihood for destructive thinking to take place. Committing to a process that involves allocating a certain amount each month, and perhaps involves peer support, ensures good habits that can circumvent natural spending instincts.
Spend on Your Best Self
Who do want to be? Let your spending reflect the type of person you want to represent. It’s about having a larger goal driving your saving and spending decisions.
As Learnvest highlights, “if you’re someone who believes that providing for your children is important…you’ll be a lot more likely to make financial decisions align with your principles.”