Intro
In this episode of the Hidden Brain Podcast titled “You 2.0: Your Future Is Now,” host Shankar Vedantam explores the psychological factors that influence our decision-making when it comes to our future selves. He delves into the concept of temporal discounting, the impact of short-sighted actions in the financial crisis, and the importance of building a closer relationship with our future selves.
Main Takeaways
Eulacee’s Pacts or Eulacee’s Contracts: Limiting Future Actions
- Eulacee’s Pacts or Eulacee’s Contracts can limit what one can do in the future to avoid mistakes or temptations.
The Power of Yes: Short-Sighted Actions in the Financial Crisis
- The Power of Yes was an operating principle for Washington Mutual Bank, which gave loans to almost everyone who applied regardless of their income or assets.
- Loan officers knew they were giving mortgages to people who had no chance of paying them back, including dead people.
- The ill-considered loans approved by Washington Mutual and other banks played a big role in the financial crisis that rocked the global economy and contributed to the Great Recession.
Psychological Factors and Short-Sighted Actions
- Short-sighted actions in the financial crisis were not just due to stupidity or greed, but also a psychological factor that affects everyone all the time, according to psychologists at UCLA.
- Failure to see the end of unsustainable practices is a pervasive problem across all of human nature.
- Temporal discounting is a fancy term for discounting the value of future rewards relative to present ones.
Disconnection Between Present and Future Selves
- Many problems stem from a disjunction between our present selves and our future selves.
- Procrastination when it comes to important tasks can have costly consequences.
- We prioritize the concerns of the present and disregard the consequences for our future selves.
Viewing Our Future Selves as Strangers
- Research by Dan Gilbert, Tim Wilson, and Jordi Kwaidbach shows that people believe they won’t change much in the future, leading to the “end of history illusion.”
- Hal Hirschfield studies our relationship to our future selves and has conducted research involving FMRI machines to scan the brains of volunteers.
- Brain activity when thinking about our future selves looks more similar to when we think about others, suggesting our future selves seem distant and like different people.
Building a Closer Relationship with Our Future Selves
- Viewing age-progressed images can have salutary effects, such as inspiring students to save more money.
- Writing letters to your future self can enhance the bond and sense of connection with your future self.
- Feeling a sense of responsibility towards your future self can increase savings, especially if you already feel a connection towards your future self.
Techniques for Better Decision Making
- Sacrifices for our future selves can feel psychologically easier if we break them into smaller units.
- Framing the sacrifices we make for our future selves can make them feel less burdensome.
- Automatic escalation is a smart way to increase savings without feeling the pain of sacrificing money in the present.
- Future contracts can help increase savings contributions by adding accountability.
- Taking away options that would tempt us can raise commitment levels, such as using a lock box for snacks.
- Adding consequences for violating resolutions can create a sense of guardrails and help people stay bound to their commitments.
Balancing Present and Future Needs
- Prioritizing future selves over present selves exclusively can lead to missing out on enjoyable things in the present.
- Living a successful and happy life involves taking a bird’s eye view of time and seeing the big picture, not just prioritizing present or future needs.
Podcast Updates
- Hidden Brain is produced by Hidden Brain Media and has launched a new podcast subscription called Hidden Brain Plus.
- Stacey Bond, part of the editorial team at Apple Podcasts, is recognized as an unsung hero for her commitment to exposing podcast listeners to great shows.
Summary
The Psychological Factors Influencing Our Decision-Making
Short-sighted actions in the financial crisis were not solely driven by stupidity or greed. Psychologists at UCLA have found that a psychological factor affects everyone all the time, leading to a failure to see the end of unsustainable practices. This temporal discounting, or discounting the value of future rewards relative to present ones, leads to a disconnection between our present and future selves. Our future selves often seem distant and like strangers, making it challenging to prioritize their needs over our present desires. However, building a closer relationship with our future selves through techniques like viewing age-progressed images and writing letters can enhance our decision-making and increase our savings. Techniques such as breaking sacrifices into smaller units, framing them differently, and adding accountability can also help us make better choices for our future selves. It’s important to strike a balance between prioritizing our present and future needs to live a successful and fulfilling life.
Conclusion
Our decisions are influenced by a complex interplay of psychological factors, including temporal discounting and our perception of our future selves as strangers. By understanding these dynamics and actively building a closer relationship with our future selves, we can make better choices that align with our long-term goals and well-being. It’s essential to find a balance between present and future needs, ensuring that we live a satisfying and meaningful life. As the Hidden Brain Podcast continues to explore the intricacies of human behavior, stay tuned for next week’s episode on mastering the art of slowing down and savoring our lives.
