When Our Brains Deceive Us
Our brains are an amazing thing. They allow us to think, remember, problem-solve, create, and dream. They are truly one of the most remarkable feats in this world. Yet, at the same time, our brains are quite fallible. Even when we feel strongly convicted about something, our brains sometimes deceive us. Scientists have done many notable studies on this phenomenon, which always blows my mind.
It's also a phenomenon I see in my coaching work on a near-daily basis. As we're out there living our busy lives, we may have one understanding of our reality, but the truth is something completely different. I'll share a few examples:
A couple wanted to finish their basement. They were confident it would cost around $20,000.....dead-set on that being the number. By the time they finished, it was closer to $65,000. Why? Because they were anchoring their perception of cost on an older, uninflated number. Also, they didn't mentally account for higher level of finishes or the few extra side projects they included. Needless to say, they were flabbergasted.....and stressed.
Another couple was struggling on their dining out budget. They continually overspent their desired amount by a wide margin. One of the spouses exclaimed, "We don't even go out to eat that much! It doesn't make any sense!!" Since they track everything, we pulled up the facts. Over the prior three months, they averaged 42 dining out trips per month. On the one hand, they "don't eat out that much," but on the other hand, they actually eat out nearly 1.5 times per day!
Another couple was brutally naive to the cost of their pets. In our first meeting, I asked them how much their pets cost. $25 per month, tops. When I questioned them about this, they confirmed all they buy is a big bag of food every few months. Their pets cost them "almost nothing." After tracking for a year, they discovered they actually spend $450/month on their pets. Minds blown!
The last couple were preparing for a weekend road trip. I encouraged them to budget adequately for it. They thumbed their noses at my number, insisting it would cost "Almost nothing. A hotel room, a tank of gas, and a few cheap meals." They insisted on only allotting $200.....the actual cost was $700.
It's not because any of these couples are dumb or uneducated.....far from it! Rather, it's a real phenomenon where our brain deceives us. We compartmentalize, gloss over things, and get distracted by all the noise. It happens to all of us.
I don't have a solution, but I do have a recommendation. Be aware this is probably happening to you. Acknowledge your brain isn't perfect. Be intentional; budget, execute, and track. When we arm ourselves with the real facts, it can be an eye-opening experience, helping us get better at this money stuff. Be mindful!
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