How to Change Your Spending Habits

How to Change Your Spending Habits
How to Change Your Spending Habits

A recent study looked at the way that judges grant parole to prisoners and the factors impacting these decisions.

What the study found was that when faced with prisoners doing time for the same crime judges were more likely to rule in favour of parole in the morning.

In the morning judges ruled in favor of parole 70% of the time, but as the day wore on, the favourable ruling dropped to zero.

What does a study on parole ruling have to do with personal finance?

The judges’ decisions are being impacted by decision fatigue, not legal precedence.

As the day progressed, the judges were required to make more and more decisions and this exhausted them mentally.

It became difficult for them to think through any of the cases in a legal or logical manner.

So rather than put the rest of society in danger by giving a criminal parole, they chose to deny parole, because it’s the safer option.

The more decisions we have to make in a day, the more exhausted we feel, and the less rational our decisions.

Decision fatigue leads to bad financial decisions

On today's vlog, I'll be discussing the impact of decision fatigue on our spending habits and how to deal with decision fatigue so we can start to save more.