Phantasm
Banned
Factors like emotions, societal expectations, biases in thinking and individual experiences influence the way people spend and save. For instance stress can make people want to spend while fear will prompt them to save. Spending without thinking is a result of immediate gratification but saving needs delayed gratification. Also, buying what other people have so as not to be left behind and some mental habits like anchoring or confirmation bias are also big issues that affect finance decision making process. Financial knowledge helps individuals make informed choices regarding marketing and resist their tactics. Behaviors define spending habits and saving while objectives provide a direction for it. One’s financial impulse control is affected by many environmental cues as being financially secure means one’s wellbeing is catered for. In order to achieve any saving goals at all self-regulation techniques e.g setting limits: do not buy on impulse might be helpful . Having basic knowledge about such dynamics will help one overcome common pitfalls, manage money effectively, and work towards his/her financial goals
