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The Psychology of Money

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How to develop a healthy relationship with money

How to create a budget

The impact of emotions on financial decisions

The Psychology of Money

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Pay attention

Pay attention

Every time you pay attention to your actions, you become more aware of what you actually get from them. 

If you notice that potato chips make you feel crappy when you eat too many, you get less excited about eating the whole bag next time.

Not because you have to force yourself to not eat them, but simply because you remember what happened last time (and the time before that, and the time before that, and the time before that)

This also holds true for worry, procrastination, or any other anxiety habit loop that you’ve learned over the years.

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The lack of information

The lack of information

If information is lacking, our PFC plays out different versions of what might happen to help us choose the best path forward. 

It does this by running simulations based on previous events in our lives that are most similar.

For example, trucks and buses are similar enough to cars tha...

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1.02K reads

The posterior cingulate cortex

A hub of the DMN called the posterior cingulate cortex (PCC) connects a bunch of other brain regions.

The PCC is interesting because it gets activated when people are shown pictures that are reminders of or triggers for their addictions.

For example, the PCC lights up with cocaine cue...

124

649 reads

You must let the pain visit.

You must allow it to teach you.

You must not allow it overstay.

IJEOMA UMEBINYUO

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Anxiety

Anxiety

Anxiety is born when our PFCs don’t have enough information to accurately predict the future

Without accurate information, our brains found it easy to spin stories of fear and dread, based on the latest reports that we had heard or read.

And because of the way our brains are wired, t...

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RANDY ARMSTRONG

Worrying does not take away tomorrow’s troubles. It takes away today’s peace.

RANDY ARMSTRONG

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849 reads

When we face dangerous situations

When we face dangerous situations

There are different types of people depending on how they react when facing danger.

These people can be categorized into three different groups based on their reactions. These groups are fight, flight, and freeze.

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762 reads

Mapping a habit

Mapping a habit

We map out how the pieces fit together and drive one another. Sometimes simply becoming aware of the habit patterns helps us step out of them, with significant results. At other times, we need a little hand-holding along the way.

How often have you struggled to force yourself to overcome ol...

126

840 reads

Anxiety hides in people’s habits

Anxiety hides in people’s habits

We all get anxious, it’s a part of life, yet how we deal with it is critical.

If we don’t know how anxiety shows up or why, we might get caught up in temporary distractions or short-term fixes that actually feed it, creating bad habits in the process (have you ever eaten ice cream or co...

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1.34K reads

The prefrontal cortex

The prefrontal cortex

Sometime in the last million years, humans evolved a new layer on top of our more primitive survival brain; neuroscientists call this the prefrontal cortex (PFC). 

From an anatomical perspective, this “newer” brain region is located just behind our eyes and forehead.

Involved in creat...

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The thinking trap

The thinking trap

The theory sounds—and is—simple. Yet this can easily fall into the thinking trap that was mentioned in the last chapter: you can know that something is bad for you, but thinking doesn’t change behaviors on its own. It isn’t strong enough.

Watch your thoughts. They become words. ...

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724 reads

The default mode network

The default mode network

In neuroscience, the default mode network (DMN), or anatomically the medial fronto-parietal network (M-FPN), is a large-scale brain network primarily composed of the medial prefrontal cortex and the posterior cingulate cortex and angular gyrus.

The DMN was discovered by Marcus Raichle and ...

124

735 reads

Anxiety and its close cousin

Anxiety and its close cousin

The anxiety and its close cousin, panic, are both born from fear. It's well known that fear’s main evolutionary function is helping us survive.

Fear is the oldest survival mechanism we’ve got. Fear teaches us to avoid dangerous situations in the future through a brain process called negati...

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CURATED FROM

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sebastian

Always improving myself @deepstash . Do not mess with my @unkl

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Practice What’s It’s Like To Be Poor

Many of us worry what if one day we ran out of money and we constantly think of it and get worry. But what instead we tok a experience what it looks like to be poor byt sleeping in sleeping bag, eating instant oatmeal , wearing same outfit, having cold showers and etc.

This will reduce th...

Invite nuance

Among the principles of intuitive eating, there are 2 related to honoring hunger and respecting fullness. But you don't have to obsess over them.

For example, you might have to eat lunch before you’re hungry because of a midday meeting, or you might not be able to eat...

Intermittent fasting

Intermittent fasting

It's not a diet, it's a pattern of eating, a way of scheduling your meals so that you get the most out of them. It doesn’t change what you eat, it changes when you eat.

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