For many people, the start of a brand-new year is a celebration to re-examine their lives, to set new objectives and to give up old routines. Making New Year's resolutions is something of a social ritual, but we see comparable behaviors around other considerable dates, too– such as birthdays and anniversaries and the altering of seasons. And while it can be argued that all of these dates are arbitrary, research studies show that they can still give you a running start in attaining your goals.
In this episode of Choiceology with Katy Milkman (), we examine the common but not always reasonable phenomenon where individuals divide their lives into chapters. We take a look at ways to utilize this phenomenon to make much better choices.
The episode begins on a riverbank, with a religious rite representing rebirth and renewal.
Next, we hear about Ray Zahab's () life changing New Year's resolution. What started as a simple strategy to live a much healthier lifestyle wound up taking him on amazing experiences all around the world. Ray is the author of the book Running For My Life ().
From Ray's story of individual change around an auspicious date, we pivot to a related propensity for individuals to separate their cash into mental accounts. Cash, like time, is fungible– one dollar is as beneficial as any other dollar– and yet individuals typically divide their cash into various categories. Why?
Nobel laureate and very popular author Richard Thaler () discusses the worth of this cognitive predisposition and checks out a few of the peculiar habits people show when they allocate their cash for different functions. And John Beshears () of the Harvard Service School () explains a research study () that exposes this predisposition in the way individuals view the value of grocery store coupons.
Lastly, Katy Milkman provides additional suggestions on leveraging these temporal landmarks and personal spending plans to help you stick to your resolutions.
Choiceology is an initial podcast from Charles Schwab (). For more on the series, see schwab.com/podcast ().
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Important Disclosures:
All expressions of viewpoint are subject to alter without notification in response to moving market conditions.
The remarks, views, and viewpoints revealed in the discussion are those of the speakers and do not necessarily represent the views of Charles Schwab.
Data included herein from third-party service providers is acquired from what are thought about reliable sources. However, its precision, completeness or reliability can not be ensured.
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