Everyone wants to boost their finances. Trimming your expenses can only go so far however, so the best way to go is to increase your income.
Let’s face it, earning money is already a hard enough task to do. Thus, earning more can seem unimaginable. While there isn’t really an easy way to earn a fortune, it isn’t exactly unattainable. In many cases, it’s all in the mind.
What many don’t know is that, money and psychology are often interrelated. One area in which the two come together is in the case of cognitive dissonance. It’s a phenomenon that’s applicable in many areas of life, but one aspect where it can explicitly manifest itself, is in our attitude towards personal finance and money decisions.
When it comes to finances, one can say that cognitive dissonance is a state of mind that will challenge your belief and your perception towards your capability. From your spending habits to your attitude towards new opportunities, cognitive dissonance plays a tiny role – to trick you into believing that you’ve made a sound decision when in reality, you haven’t.
Here’s an example:
Your goal is to be rich by the age of 40, and you’re aware that it can’t happen if you just rely on a single income – your 9 to 5 job. You’re 30 years old and hold an office job full time, and you have saved enough funds to start your own business. Despite the available resources and the opportunity to start early, you procrastinate with your plans because you feel like you’re not ready.
Apparently, cognitive dissonance inhibited you from pursuing an opportunity because you didn’t think your plan aligned with your capability. While it’s true that it’s ill-advised to run a business without enough preparation, not taking the first step to prepare yourself is a step away from your goals.
How can you break away from cognitive dissonance? Watch the video to learn more and find out!
Is cognitive dissonance stopping you from earning more? Watch this video and find out.
Posted by Psychology Hacker on Monday, 30 April 2018