sabotage

3 Ways Your Body Sabotages Your Money

Emily Guy Birken — Thu, 07 Dec 2017 09:01:06 +0000

Humans share a common delusion when it comes to our actions: We like to believe that it's our brains running the show, and our bodies are just along for the ride. We trust our little gray cells to do the work of making sure we stick to the straight-and-narrow path while we are trying to reach our personal and financial goals.

The problem is that our bodies have an impressive ability to sabotage all the good intentions of our brains. Before you assume that your cerebellum is up to the task of resisting your body's sabotage, remember that the following things can crush even the strongest of good intentions into dust. (See also: 5 Mental Biases That Are Keeping You Poor)

Hunger saps your willpower

Those candy bar commercials are quite right when they point out that you're not you when you're hungry. While everyone has experienced the irritability associated with being a little "hangry," what you might not realize is that your low blood sugar is also depleting your ability to withstand temptation.

According to a 2007 self-control study by Matthew T. Gailliot and Roy F. Baumeister, your ability to exert self-discipline depends partially on your blood-glucose levels. This is the sort of thing that feels obvious when you go grocery shopping on an empty stomach, since you're feeling tempted by the very thing you lack. However, the relationship between self-discipline and blood-glucose levels is also behind your struggle to avoid other types of temptations. That's because, according to the researchers, "self-control requires a certain amount of glucose to operate unimpaired."

This is why it's much harder to avoid making impulse purchases when you're hungry. For instance, I recently forgot to grab a snack for myself right before taking my son to his weekly swim lesson. While I waited by the pool with my stomach rumbling, I found myself purchasing two new audiobooks from Audible on my phone, despite my commitment to refrain from spending more money on audiobooks. My willpower was destroyed by my hunger pangs.

That's why I try to always carry a piece of fruit or other complex carbohydrate with me while I'm out. (That, and you wouldn't like my kids when they are hangry.) Having a quick snack can often nip temptations in the bud before they have a chance to disrupt your good financial intentions.

Lack of sleep impairs your judgment

We've all known the fuzzy feeling in our heads after an all-nighter. Since the wooziness disappears once you've gotten some sleep, we all tend to ignore the effects of sleeplessness since they are relatively short lived. After all, no one goes for days on end without sleep.

Unfortunately, sleep deprivation has a much bigger effect on your cognitive abilities than you might realize. A 2000 study by A.M. Williamson and Anne-Marie Feyer found that going without sleep for 20 or more hours straight makes a person perform tasks as if they had a blood alcohol level of 0.1 percent, which is 0.02 percent over the legal limit for driving under the influence. The study was looking at how non-sleepers do while performing tasks requiring both speed and accuracy — such as the tasks necessary to drive a car.

Of course, most people are not going without sleep for 20 hours. However, even a built-up sleep deficit accumulated by regularly getting only four or five hours of sleep per night can affect your mental acuity. In a 2006 interview with The Harvard Business Review, Dr. Charles A. Czeisler, the Baldino Professor of Sleep Medicine at Harvard Medical School wrote, "[if you] average four hours of sleep a night for four or five days, [you] develop the same level of cognitive impairment as if [you'd] been awake for 24 hours."

So what does this mean for your financial goals? Nothing good, I'm afraid. Your ability to make rational financial decisions is also seriously impaired when your mental acuity is suffering from sleep deprivation. Your sleep-deprived brain is less able to fulfill the sorts of executive functions necessary to predict outcomes and perceive the consequences of actions — which means you are more likely to make poor financial decisions when you are exhausted.

Arousal can erode your moral compass

You might believe that your morality is an integral part of who you are, but behavioral economists have shown that our belief systems can be thwarted when our bodies want something. With a racy experiment, author and researcher Dan Ariely demonstrated in his book Predictably Irrational that our commitment to various strongly-held beliefs decreases when we are in a state of sexual arousal.

Ariely's experiment asked college-aged men how they felt about issues like fairness, gender equality, and safe sex. During the control "cold" state, these young men expressed commitment to moral, ethical, and responsible behavior. But after being exposed to sexual imagery, and entering into what scientists call a "hot" state, their beliefs were much more malleable.

This malleability of beliefs is not confined to sexual arousal. The hot-cold empathy gap is the name for this change in behavior due to any number of bodily needs. The empathy gap describes the way in which it is difficult for someone who is not currently experiencing something like hunger, pain, or sexual arousal to recognize how much these states can affect their decisions. For instance, in a separate study, respondents in a 2003 survey were much likelier to rate thirst rather than hunger as the most unpleasant aspect of being lost in the woods if the respondents had just finished a cardio workout and were therefore thirsty. If they had not yet started their workout, the respondents rated hunger as being more unpleasant.

This kind of empathy gap is the reason why we often wrongly predict that we will be able to resist temptation in the moment. When we are not currently faced with a temptation, we imagine ourselves as being the most rational and moral version of ourselves. But feeling hunger, pain, arousal, thirst, or other overwhelming bodily needs weakens our commitments to good behavior.

In terms of your finances, that means an overwhelming thirst (or other need) could prompt you to spend money you had no intention of spending.

Outwitting your body

The good news is that just because our bodies do have the ability to override our brains, we are still smarter than our impulses. The trick is to recognize that you are not always the best version of yourself, and plan ahead for those moments.

Carry snacks with you to make sure your blood-glucose level doesn't drop to finance-sabotaging depths. Make sure you get adequate sleep, and hide your credit cards when you know you'll have a few nights of sleeplessness. Assume that you're going to be the worst version of yourself when you're in pain, aroused, hungry, thirsty, or craving sugar. If you recognize that you'll have trouble avoiding temptation in those states, it's easier to structure activities so that you don't come into contact with temptations during those times at all.

The most disciplined and intelligent savers aren't necessarily better at exerting willpower. They just know that they won't always be perfect, and they plan ahead for when their bodies, rather than their brains, are behind the wheel.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Ways You Sabotage Your Financial Growth

Mikey Rox — Fri, 12 May 2017 08:00:08 +0000

I'm a take-responsibility-for-your-actions kind of guy, which is why I don't have a problem telling you that most of your financial problems are self-inflicted. Yes, we all get the short end of the stick sometimes, and extenuating circumstances compromise our bank accounts now and then. But by and large, if you're constantly lamenting you never have enough money or can't get ahead, well — you're probably sabotaging your own financial progress in one of these ways.

1. Lifestyle inflation

Mo' money, mo' problems. It's not just a song from Biggie, it's also an accurate reflection on how increased income doesn't necessarily improve your financial situation. If you're not careful, often as your wallet grows, so does how much you spend.

"When you receive a raise, it's challenging not to make upgrades to your belongings since you can afford to do so," says Coupon Sherpa saving expert Kendal Perez. "However, lifestyle inflation sabotages your financial goals in that you won't actually be richer; instead, your toys and debts will be more expensive, and you'll stay at the same level or be even worse off than you were before the increase." (See also: How One Nice Thing Can Ruin Your Whole Budget)

2. Refusal to sacrifice

As much as you want it all, sometimes that's just not possible — especially if the effort is making you broke. In that case, you need to step back, figure out what's most important to you, and sacrifice what you can live without. For example, if you're holding on to that fancy, expensive car despite barely making the payments, while other bills are also suffering, it's time to re-evaluate. That vehicle may be fun to drive, but it's probably not so awesome to live in.

3. Avoiding your financial fears

Managing your money can be intimidating. Unfortunately, brushing your money issues to the side won't make them go away. In fact, it will only exacerbate the problem, which will return with a vengeance if you disregard them for too long.

"We make excuse after excuse to avoid our fears, including not tackling our finances because numbers can seem scary," says Natasha Rachel Smith, personal finance expert at TopCashback. "Pluck up the courage to make time for and respect money; it will then respect you back and you'll be in control of it rather than it being in control of you."

It's not just managing your finances on a basic level, though. Your fear of money is probably preventing you from making smart investments that can improve your overall financial outlook.

"Fear of investing, or fear of new-tech options like high-yield online bank accounts, reduces the potential for financial growth," she says. "Knowledge is power, so educating yourself on those financial topics that scare you is the first and most important step toward overcoming that fear."

4. Relying on future success

I've heard it plenty of times before, and I've even said it myself: "I don't need to worry about my finances right now. I'm young; in a few years I'll have a good job and I can start thinking about things then." And then, BAM! Suddenly you're in your mid-30s trying to buy a house, catching up on a 401(k), supporting a kid or two, and kicking yourself in your own behind.

Millennial finance expert Erin Lowry, author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together, wants you to cut that out.

"People use youth combined with a delusional idea of future success as an excuse far too often," she says. "You shouldn't buck healthy financial habits, like saving and investing in a 401(k) today, just because you think you'll be earning $200,000 by 35. There are no guarantees about your future, but you can control today's behaviors and set yourself up for a comfortable life."

5. Letting inertia keep you loyal

Ask anybody why they stay with their banking institution, and they'll likely tell you that it's a hassle to change. Is that how you'd respond? That mentality can cost you.

Money expert Michelle Hutchinson explains.

"Financial providers devise a number of incentives to keep you loyal to their services, but sometimes it makes sense financially to make a switch. Despite this, many Americans will stay with the same providers for years due to it being perceived as a hassle or little value to switch," she says. "Set a calendar reminder every six to 12 months to review your current banking, credit card, insurance, and loan providers to ensure you're getting the best deal."

6. Not planning for emergencies

One of the biggest mistakes people make is not being financially prepared for an emergency. If you don't have the money set aside to deal with a job loss, blown transmission, or other costly problem, you could be looking at a long road of debt, disappointment, and even depression. Find places in your budget where you can set some money aside each month, and get to it. Don't be caught off guard when your next emergency hits. (See also: A Step-by-Step Guide to Creating Your Emergency Fund)

7. Just wingin' it

Just want to let things happen because you're laid-back and easygoing and everything will work out in the end? Snap out of it, stupid. That's not how the world works. It is, however, how permanent unemployment and homelessness work.

"Winging it just doesn't work," says Wayne Bland, retirement plan adviser at Metro Retirement Plan in Charlotte, N.C. "Every client that I work with that has a good grasp of their financial situation has some type of plan. It may be a basic budget scribbled on a napkin or a full professionally prepared plan. The common denominator is that they all have some document to provide a measure of direction. Knowing what you hope to achieve financially in the near and far will help you decide how to save, spend, and invest."

8. Spending while emotional

Admittedly, I enjoy a good bit of retail therapy. Until the bill comes and I'm like, guess it's potato chip sandwiches for the rest of the month.

"The phrases 'treat yo'self' and 'retail therapy' speak to the instant gratification associated with spending money when you're feeling down," explains Perez. "However, making purchases when you're having a hard time is neither an emotionally nor financially sound way to manage your problems." (See also: The High Cost of the "Treat Yourself" Mindset)

If you tend to spend money when you're stressed, upset, bored, or down, there are ways you can avoid the temptation. Unsubscribe from retail mailing and catalog lists and steer clear of the mall. If you find yourself really wanting an item, make yourself wait 24 hours before buying it. You might be surprised to find the "want" diminishes simply by waiting out the impulse.

Finally, consider a hobby or alternative activity you can turn to in times of stress. Even something as simple as going for a walk can greatly improve your mood.

9. Not seeking help

It's not easy to talk about money woes — I understand that just as well as you do — but sometimes it's important to ask for help. If you have a family member or friend who's an expert in finance, maybe they can help you. If you don't want to let them in on your situation, consider consulting a professional that will help you improve and strengthen your problem areas with actionable advice. Help is out there; if you're in financial trouble, seek it. Don't wait until it's too late.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: