When psychologically explaining the reason why you can not increase money, it becomes like this, how can I save money?

byFabian Blank

There should be many people who are experiencing that they are thinking "I want money" but I think that they do not want to spend money but rather decrease rapidly. Why do people not good at managing money? There are a lot of psychological factors involved in that. If you understand what kind of behavior you take from psychological factors, it will be better to manage money a little ... ... It is an economic related reporterEshe NelsonMrBehavioral economicsI explain the actions of people seen from the perspective divided into five.

Manage your money better with these tips from behavioral economics - Quartz
https://qz.com/1264033/all-the-human-flaws-and-biases-that-prevent-you-from-managing-money-properly/

◆ 1: Current bias

byAles Krivec

People tend to place too much emphasis on "present" and often invite the state "dynamic inconsistency". Dynamic inconsistency means that incentives change with the lapse of time, the actions assumed at the initial point can not be taken and the target can not be achieved.

It was conducted from the 1960's to the 1970'sMarshmallow ExperimentThen, "If children are given marshmallows and say" If you can not keep eating until this adult comes up with this marshmallow, you can get another marshmallow, "the child thinks" I want to eat two marshmallows " Even though we are going to eat marshmallows without having to wait for adults to come home. "

Even adults do the same thing. Even though I think that "I will make money for the future", if I place a greater emphasis on "now", I will use money for "I am uncomfortable" and think "I will save money from tomorrow" thing. If you set one goal, you should not change that decision because you planned the time.

Professor Stephan Meier of the Columbia Business School is researching that credit card debt accumulates, defaults,Credit scoreIn the 2010 paper, "People who are currently biased have approximately twice their debt balances compared with those who do not" It states that.

◆ 2: Planner and actor

byNik MacMillan

With the current bias, people will suffer from "thoughtful plans for the future" and "choices for immediate satisfaction". This can be rephrased as "problem of planner and actor", and Richard Thaler, who received the Nobel economics award,Counterattack of Behavioral Economics"Many people underestimate the seriousness while recognizing this issue", he says.

In order to solve this problem, it is useful to reduce choices at the time of "plan". For example, if you had planned to save money, if you divide the piggy bank, the waste is cut off and should be reduced. In this way, not only do comprehensive decisions are made when making decisions about money, but what we judge within a narrow frame is called "mental accounting (heart household account book)". In reality, if one banknote is attached, you can withdraw money from another deposit box, but because there is bias of mental accounting, people reduce wastefulness.

◆ 3:Integrated Risk ManagementConfusion of

byrawpixel

Simply putting the word "turmoil in integrated risk management" simply means "People are confused." Financial instruments are becoming more complicated and we can not understand the documents unless we have learned the law professionally. In financial markets, especially consumers are liable to make mistakes, so that many companies are profitable. This is due to the complexity of the financial market, the impact of one choice to the future, and the fact that companies are not willing to educate consumers. Unless you are an expert, it is recommended that you do not overconfident about money and seek advice.

◆ 4: Preservation bias

byDoran Erickson

In order to ask for advice, you need to overcome inertia. Many people will stay in the current state even if they gain great profit at a small cost. In the United States, unless you express your intention to not participate in the defined contribution pension plan, a system that automatically becomes a subscriber was taken and promotion of the participation of the defined contribution pension system was attempted. This is based on the current maintenance bias.

If you choose "do nothing" about subscribing to the defined contribution pension scheme, a high fee will be charged, safe investment will be made and the additional investment proceeds will slowly accumulate. At this time, if a person recognizes the status maintenance bias and acts to overcome it, he could rethink the risk factor in his sin and be able to lower the fee.

◆ 5: Avoidance of lossAnchoring

byJonathan Brinkhorst

People hold emotions twice as strong as those who lose money even if they have the same amount of money. From this, people will spend more effort not to lose 10,000 yen than getting 10,000 yen.

A cognitive bias that is very similar to this is "anchoring". Price used as a reference when a person sell something will be "the amount paid at the time of purchase." Even if the value of the item is much lower than the purchase price, since our feeling is anchored (purchased with anchor) by purchase price, we can not sell at a price lower than the purchase price. The same thing happens with stocks, and even if the price of the stock is low and you should sell it, if you miss the opportunity to sell at the purchase price, you may not be able to sell stocks. In addition, it seems sometimes to be to fill the loss in the decision at risk just to want to avoid the loss.