Strategies for Minimizing Cognitive Load to Improve Personal Finance

Do you remember the thrill of entering an amusement park, fair, arcade or casino for the first time? At first, it may fill you with adrenaline but quickly gives way to boredom or overwhelm.

“Should I wait in line now or come back later?”

Should I grab some food first or do that one ride first?”

“Should I start playing now or wait to buy more tokens first?”

“Should I visit the restroom immediately, or wait until I find another?”

An endless series of options and decisions turns what should be an enjoyable or entertaining experience into an exhausting decision-making marathon.

Although few of us frequent amusement parks and casinos regularly, similar feelings of overwhelm may surface more often in everyday life. Perhaps you experience it when joining large work social events or parties; walking into massive conventions; shopping malls; returning from vacation only to find hundreds of thousands of emails all waiting for a reply; opening your DVR/streaming service with multiple shows/movies ready and waiting; opening your closet each morning in anticipation of hundreds of clothing combinations that could fit the occasion; etc.

I know it when my browser contains more than 30 tabs, each representing one more task to be completed.

Even in our daily lives, we face decisions that can be debilitating. Studies suggest that an average consumer is exposed to over 5,000 advertisements per day – meaning there could be multiple things competing for our time, money and attention at any one moment – cognitive overload is very real and an issue.

Casinos, amusement parks, arcades, and malls bombard visitors with stimuli for a reason: all the stimulation combined with endless decision-making tire out your brain – leaving it less guarded towards money matters.

Cognitive overload has the power to impact everyday activities as well. A DIY project that was simple 30 or 50 years ago may now seem insurmountable, leading us to hire professional services instead despite perceived (though often unreal) convenience – be it changing an air filter in our car, cleaning our apartment or cooking a meal! Similarly, making an impulsive purchase can provide relief.

You May Also Like

More From Author

+ There are no comments

Add yours