Making the right decisions.
“A reward-sensitive person is highly motivated to seek rewards – from a promotion to a lottery jackpot to an enjoyable evening out with friends. Reward sensitivity motivates us to pursue goals like sex and money, social status and influence. It prompts us to climb ladders and reach for faraway branches in order to gather life’s choicest fruits.
But sometimes we’re too sensitive to rewards. Reward sensitivity on overdrive gets people into all kinds of trouble. We can get so excited by the prospect of juicy prizes, like winning big in the stock market, that we take outsized risks and ignore obvious warning signals.” [1]
Susan Cain, author + attorney
Reward-driven Stupors
I believe that excitement and reward sensitivity attributes to financial crises on an individual and national scale. An example? The Dotcom bubble of the early 2000s.
An economic bubble occurs when the value of an asset exceeds its intrinsic value.
Before the Dotcom disaster happened, Warren Buffett, a wealthy and wise investor called it. More recently He’s chimed in on the Bitcoin. What’s the Bitcoin? Check out this infographic from CNN to find out!
Lately, there’s been much enamor over the bitcoin, especially with its value exceeding 10K this week. Still, is all the hype over the world’s most popular digital currency real?
You decide. See what longtime investor Buffett says about the Bitcoin on Forbes and be sure to watch the video below!
Photo by Fabian Blank on Unsplash
3 Step Decision Making Moves to Keep In Your Back Pocket
Avoid being intoxicated by rewards by applying these decision-making strategies to any situation you face:
- Make the right decision for you. Do your research and don’t be emotionally driven.
- Creating wealth is not about an immediate reward. Wealth comes from consistent and calculated strikes. And building wealth is about establishing patterns, such as wise spending + smart choices.
- While risks are necessary, it’s also essential to recognize when the risk outweighs the value, when to strike, and when to move.
Stay sober.
VIDEO: Watch “Reward Driven Stupors” Now
References
- Cain, Susan. “Quiet: The Power of Introverts in a World That Can’t Stop Talking.” Quiet: the Power of Introverts in a World That Can’t Stop Talking, Broadway Books, 2013, pp. 157–157.
Featured Photo by David Streit on Unsplash
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