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- How Big Numbers Short-Circuit Your Brain And Your Finances
Sorry to be the one to tell you this, but your brain is just not evolved to process big numbers. In our journey from hunter-gatherers to wage slaves, homo sapiens never quite evolved the mental machinery needed to efficiently process the high numbers we typically face when doing things like buying cars, taking out mortgages and saving for retirement.
There’s a fundamental flaw with lots of financial advice: it assumes you have money. For some people, post-bills income just doesn’t exist (and that number is only growing). So you just can’t follow all the advice you get during especially hard times.
There is a wide range of financial information available to us at any time if we are committed to doing a little research. We can learn how to budget, invest, save — everything we need to know in order to be financially stable. So with all that available information, why are so many of us living financially stressful lives centered around overspending and under-planning?