2708: Does Your Brain Predict Your Financial Success by John Assaraf of My Neurogym

[00:00:00] This episode is brought to you by La Quinta by Windham.

[00:00:03] Your work can take you all over the place, like Texas.

[00:00:06] You've never been, but it's going to be great because you're staying at La Quinta by Windham.

[00:00:10] Their free bright side breakfast will give you energy for the day ahead

[00:00:13] and after you can unwind using their free high-speed Wi-Fi.

[00:00:16] Tonight, La Quinta, tomorrow you shine.

[00:00:19] Book your stay today at LQ.com.

[00:00:32] This is Optimal Finance Daily, episode 2708.

[00:00:35] Does your brain predict your financial success?

[00:00:38] By John Asareff of MyNursePrize.com

[00:01:03] And I'm your host and personal finance enthusiast, Diania Merriam.

[00:01:07] This podcast is actually one of multiple shows in our network,

[00:01:10] covering different topics like personal development, health and relationships.

[00:01:14] So if you like a narration-style podcast,

[00:01:17] be sure to search for Optimal Living Daily wherever you're hearing this

[00:01:20] and check out our other shows.

[00:01:22] But for now, let's get right to today's post as we optimize your life.

[00:01:26] Does your brain predict your financial success?

[00:01:33] By John Asareff of MyNursePrize.com

[00:02:03] Sometimes it's kind of a hindrance.

[00:02:05] This is partly because brains just love automation.

[00:02:09] Thinking takes a lot of energy.

[00:02:11] The energy you might otherwise be spent hunting for food or fending off predators.

[00:02:16] You, like most of us, probably shop at a grocery store.

[00:02:20] Our brains just haven't caught up to the fact that food is easy to get.

[00:02:24] Your brain is conservative with its energy use

[00:02:27] because it was necessary for survival hundreds of years ago.

[00:02:31] Instead of using conscious thinking processes,

[00:02:34] you have automatic patterns and habits.

[00:02:37] There's a little part of your brain that actually predicts how much you will earn in the future.

[00:02:42] It's called the frontostratial pathway.

[00:02:45] Its fortune telling powers arise because it relies on all the information from your past.

[00:02:51] Often your past does determine your future.

[00:02:55] Here's why.

[00:02:56] The frontostratial pathway holds onto your hidden self-image or your non-conscious identity.

[00:03:02] This image of yourself drives behavior more strongly than your conscious decisions and desires.

[00:03:08] For example, people who win large sums of money in the lottery are very likely to be broke again after a short amount of time.

[00:03:17] Increasing their wealth overnight without first shifting their identities

[00:03:21] causes most lottery winners to return to their pre-lottory states.

[00:03:26] It's not because the winners aren't smart or don't have skills.

[00:03:29] It's because there's a financial set point in the brain.

[00:03:32] Your set point is your comfort zone.

[00:03:35] It's an accumulation of data from your past that your brain uses to predict and drive you towards a certain income level.

[00:03:43] If you've been earning the same amount for the last 10 years,

[00:03:46] that income level is part of your hidden self-image.

[00:03:50] And if you try earning more by breaking out of your comfort zone, a little alarm will go off in your brain.

[00:03:57] Your brain and big change.

[00:04:00] You have a teeny brain called the hypothalamus, and it's big on maintaining homeostasis.

[00:04:06] It functions kind of like a thermostat.

[00:04:09] When your hypothalamus senses a big change, it immediately wants to get back to the set point.

[00:04:15] It influences your thoughts, emotions and behaviors to get you back to your comfort zone.

[00:04:21] The more your frontostracial pathway enforces a belief, the more it sets in with your hidden self-image.

[00:04:28] Perhaps you have a conscious idea of the income you want to be earning.

[00:04:32] If it's a lot more than what you have been earning, you're competing with a strong unconscious sense of self.

[00:04:39] It's in the background, subtly causing you to maintain whatever level of financial achievement you've conditioned your brain to expect.

[00:04:47] The latest research shows that any change in the brain is interpreted as stressful,

[00:04:52] regardless of whether it's a good change or a bad change.

[00:04:56] Any big change activates the fear center. You're amygdala.

[00:05:00] When that little guy lights up, it makes you do one of three things.

[00:05:04] Freezing your tracks, fight the change or run away from it.

[00:05:09] How to overcome your set point

[00:05:12] If you want to make a change in your life, you have to get your frontostracial pathway on board.

[00:05:17] When your non-conscious self matches your conscious image and desires, you'll start earning what you desire.

[00:05:24] Rather than trying big changes, research suggests that small changes in your thoughts or behaviors won't activate your amygdala.

[00:05:34] Visualization is a fantastic small change to make in your thinking.

[00:05:39] If you imagine yourself after you achieved the success you want, you activate the nucleus accumens and insula.

[00:05:47] These are the motivation centers in the brain. They get you excited to take action on reaching your goals.

[00:05:54] Want to try a thought exercise?

[00:05:57] Imagine yourself sitting in a Hollywood cafe.

[00:06:00] A famous producer comes up to you and introduces himself.

[00:06:04] He then tells you that he's producing a new Hollywood movie.

[00:06:07] He saw you from across the room and he thinks you'd be perfect for a role.

[00:06:12] If you like the script and are willing to be in the movie, he'll pay you $5 million.

[00:06:16] Would you be excited? Shocked? Maybe even a little scared?

[00:06:21] Let's assume you agree to accept the challenge after some tests and discussions.

[00:06:26] You agree to do your very best to play the role. Then you sign the contract and take your script.

[00:06:32] What do you do first?

[00:06:34] If you really want to nail the part and have people believe you when you play the part, would you practice reading, acting and imagining the role?

[00:06:43] With practice in your mind and through your behavior, you would start to integrate the role.

[00:06:49] The more familiar the role becomes, the more you become the role.

[00:06:54] This is exactly what happens when you try to integrate any new role into your brain.

[00:06:59] When you're working with your self-image and you add knowledge, skills and ability, your goal and vision become one.

[00:07:07] Your frontest racial pathway has that new image integrated with the old one.

[00:07:12] You have changed from the inside out.

[00:07:15] Do this for the next seven days.

[00:07:18] To get started activating the part of your brain that manages your self-image, try this trick.

[00:07:24] Sit quietly for five minutes and see yourself already achieving the financial goals you have for yourself.

[00:07:30] See it in your mind's eye.

[00:07:32] Role play with yourself and ask yourself questions.

[00:07:35] What are you wearing? Who are you with? What are you feeling and doing?

[00:07:40] What is the entire emotion that you're experiencing?

[00:07:44] The more detailed you are, the easier it is to retrain your unconscious self-image of yourself.

[00:07:50] This practice is really the art of repeating something until it feels normal, just like riding a bike or learning the alphabet.

[00:07:58] Learning how to become the script requires focused attention and spaced repetition so it really sinks in.

[00:08:05] So does creating the new self-image you want.

[00:08:09] What's next?

[00:08:10] The next step to changing the way your brain thinks automatically is to get clear about your money story.

[00:08:17] The unconscious rules that we set in our brains that can either keep us from expanding our thinking or propel us to financial success.

[00:08:30] You just listened to the post titled, Does Your Brain Predict Your Financial Success?

[00:08:35] by John Asraf of MyNeuroGym.com

[00:08:38] and I'll be right back with my commentary.

[00:08:41] Looking to part ways with complicated, expensive and uncertain shipping?

[00:08:45] Then give your business the edge it needs with USPS Ground Advantage Shipping from the United States Postal Service.

[00:08:53] Keep everything simple with clear upfront pricing and no unexpected surcharges.

[00:08:59] Keep things affordable with some of the lowest prices out there.

[00:09:03] And keep it all reliable with on-time ground shipments.

[00:09:07] It's time to turn shipping to your advantage.

[00:09:10] Learn how at USPS.com slash Advantage.

[00:09:14] USPS Ground Advantage.

[00:09:17] Simple, affordable, reliable.

[00:09:20] If you've been using Mint to manage your finances, I've got some bad news.

[00:09:24] Mint is shutting down.

[00:09:26] But now for the good news.

[00:09:27] There's a better alternative.

[00:09:29] Our sponsor, Monarch Money.

[00:09:31] Mint users are turning to Monarch Money and loving it.

[00:09:35] Maybe you're saving for a down payment.

[00:09:37] A wedding?

[00:09:38] A dream vacation?

[00:09:39] Your kids college?

[00:09:41] I found that Monarch makes it so easy to help you reach your financial goals, whatever they are.

[00:09:45] I definitely wouldn't be able to allocate my finances or plan as clearly without help from Monarch.

[00:09:51] In fact, Monarch is the top rated all-in-one personal finance app.

[00:09:55] It gives you a comprehensive view of all of your accounts, investments, transactions and more.

[00:10:00] Create custom budgets, set goals and collaborate with your partner.

[00:10:04] And now get an extended 30-day free trial when you go to MonarchMoney.com slash OFD.

[00:10:10] After trying out Monarch for myself, I understand why it's the top rated personal finance app.

[00:10:15] And right now get an extended 30-day free trial when you go to MonarchMoney.com slash OFD.

[00:10:21] That's MONARCHMONEY.COM slash OFD for your extended 30-day free trial.

[00:10:30] This post reminded me why financial independence starts in your mind.

[00:10:36] If you believe you'll always be broke, you are less likely to take the actions necessary to improve your situation.

[00:10:43] But if you see it as fixable, you're empowered to take action.

[00:10:47] And action over time leads to healthy money habits.

[00:10:51] And healthy money habits over time create financial independence realities.

[00:10:56] The phrase thoughts become things sounds so woo-woo I know.

[00:11:01] But to me it's not about magical thinking.

[00:11:04] There seems to be a clear process as to how thoughts become things.

[00:11:08] Your thoughts manifest as the words you say to yourself and to other people.

[00:11:13] And when you say these words enough times, they solidify as beliefs.

[00:11:18] I think you need to truly believe something on a deep level in order to take confident, consistent action.

[00:11:25] So when it comes to your finances, if you don't truly believe that the little thing you waste money on every day

[00:11:30] is going to make that much of a difference in your finances,

[00:11:33] you may be able to use willpower for a little while to resist.

[00:11:37] But you'll likely not make a long-term change.

[00:11:40] Same thing with your ability to increase your income.

[00:11:43] You first need to be able to visualize it and believe it's possible.

[00:11:48] This to me is where self-control and effort is required.

[00:11:52] If we put effort into changing our beliefs, rather than forcing ourselves to take half-hearted action,

[00:11:59] it can make a big difference.

[00:12:01] When action flows from belief, it's easier to commit to that action.

[00:12:06] And over time, that action becomes a mindless habit.

[00:12:09] It takes much less effort to stick with it.

[00:12:12] These habits are the building blocks of our realities

[00:12:15] and habits are built unconsciously or consciously.

[00:12:19] That's why listening to a podcast like this one daily

[00:12:22] can have such a positive effect on your spending and your ability to increase your income

[00:12:27] because you're getting to the root of your behaviors through your beliefs.

[00:12:32] And that's a wrap for the Monday show.

[00:12:34] Have a great rest of your day, and I'll be back tomorrow where your optimal life awaits.