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Decision Fatigue, Snicker Bars and Making Financial Decisions

| June 13, 2016
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Financial decisions
A Snickers bar can save you money.  Not just a little money either.  Used correctly, it could potentially spare you thousands of dollars.

Decision Fatigue 

That’s the gist of new research on a phenomenon called “decision fatigue”Decision fatigue is what happens to people when they have made too many choices.  As your brain gets tired, you become worse at making decisions.
 
That fatigue explains why ordinarily sensible people:
  • Get angry at colleagues and families
  • Splurge on clothes
  • Buy junk food at the supermarket
  • Indulge in midnight snacking
Researchers are finding that willpower is an expendable resource.  Some people have more or less of it.  No one can make the same quality decisions all the time.  We wear ourselves down by using our willpower and become prone to poor choices until we replenish our strength.

The Solution:

That Snicker bar I mentioned. Remember those commercials they ran with Betty White, Danny DeVito – the one with Danny Trejo who is supposed to be Marcia Brady and he hits the table with the axe.  One bite of the candy bar and you’re back to your old self.  A shot of glucose will flood your brain enabling you to make decisions with a fresh base of willpower.
 
Researchers suggest only making important decisions when you are rested and fed.  They suggest:
  • Sticking to decision-making only when sober
  • Avoiding scheduling meetings back to back
  • Make important decisions early in the day
Many financial discussions with a significant other are likely to occur after work.  Have a discussion after dinner when you have a full stomach.  Don’t talk about complex issues right before bedtime when your zapped. Consider scheduling discussions for the weekend when your rested and you can talk early in the day.

If you’d like help reviewing your retirement savings strategy, please contact Casey Boland via email casey@hengeholdcapital.com or 513-598-5120.

Date Posted: 06/13/2016 Advice provided in this article is meant for educational purposes only and financial education is important to us. Before making decisions regarding your personal financial situation, please consult an advisor or conduct your own due diligence. If you would like to discuss your Retirement Income Plan with an HCM Wealth Advisor, please give us a call – 513-598-5120. Located in Cincinnati, Ohio, we serve clients in 28 states, and we’d love to help.

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