How do your emotions influence your economic decisions? This video explores how sadness, disgust, fear, gratitude, and happiness influence our decisions, especially those around money. It also explains a couple strategies for regulating our emotions so we can make wiser financial decisions.
In general, happiness and gratitude make us more patient in delaying gratification. Fear makes all but the least risky (and therefore, least rewarding) outcomes appear threatening. Sadness makes us want to change our situation, leading us to buy or sell at disadvantageous prices. Disgust makes us want to sell what we’ve got, even if the price is too low, or simply not buy something even if the price is good.
00:00 How do your emotions influence your decisions?
02:35 How Sadness Influences Economic Decisions
04:25 How Disgust Influences Economic Decisions
05:47 How Fear Influences Economic Decisions
07:10 How Gratitude Influences Economic Decisions
09:10 How Happiness Influences Economic Decisions
11:06 How to make better economic decisions by regulating your emotions
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