Money is an emotional topic, which partly explains why we all struggle to spend, save, and negotiate in an optimally rational way.
But what's really happening inside our brains when money comes up?
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Here are three things your brain does when you think about money.
The stomach pain you feel when your money is at risk is real. The part of your brain activated through money is the part that's associated with anxiety, pain and hunger.
Your brain making money looks a lot like your brain on cocaine. So, when people say that money is a drug, they're not actually that far off. The part of your brain tied to reward, pleasure and motivation heightens when you're about to make money.
Risky and safe decisions happen in different parts of the brain. Risk-aversion and risk-seeking mistakes activate separate areas. Risk-aversion mistakes are linked to social emotions which is the same part of the brain that lights up when people feel pain, empathise or decide not to buy an item.