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How your nervous system affects your money and business.

Updated: Jun 5


How your nervous system affects your money and business
Money and Your Nervous System

Let’s talk about Money and your Nervous System. I have learned this, and it has helped me to help my clients, too.


The nervous system plays a crucial role in shaping our money mindset, influencing our decisions, behaviors, and attitudes toward money. It does so through a complex interplay of emotions, cognitive processes, and physiological responses. Here's how the nervous system can affect the money mindset:


1. Fight-or-flight Response: The sympathetic nervous system activates the fight-or-flight response in stressful situations, including financial stress. This can lead to impulsive decisions, such as spending to relieve stress or avoiding dealing with financial issues.

2. Reward System: The brain's reward system, particularly the dopamine pathways, plays a significant role in perceiving and pursuing financial gains. Positive financial outcomes can stimulate this system, reinforcing behaviors that lead to such products. However, it can also contribute to risk-taking and impulsive spending for the sake of the rewarding feeling.

3. Emotional Regulation: The nervous system's regulation of emotions affects financial decision-making. The prefrontal cortex, which is involved in decision-making and impulse control, helps regulate emotions. When emotional regulation is poor, individuals may make economic decisions based on immediate feelings rather than long-term planning.

4. Stress and Anxiety: Chronic stress and anxiety, regulated by the nervous system, can negatively impact financial decision-making. High stress levels can impair cognitive functions, such as planning, problem-solving, and decision-making, leading to poorer financial choices.

5. Learning and Memory: The nervous system's role in learning and memory formation also influences the money mindset. Past financial experiences, whether positive or negative, are stored in memory and can shape future financial beliefs and behaviors. For example, experiencing financial hardship can lead to a scarcity mindset, while positive experiences can foster a more abundance-oriented mindset.

6. Social Comparison and Influence: The nervous system's processing of social cues can affect financial attitudes and behaviors. Observing others' financial success or challenges can influence one's economic aspirations and fears through social comparison and the desire for social status.

7. Risk Perception and Tolerance: Individual differences in the nervous system's response to risk can lead to varying financial behaviors. Some people may have a higher tolerance for financial risk, driven by their nervous system's response to potential rewards versus potential losses.


The nervous system regulates emotional responses, stress levels, cognitive processes, and reward mechanisms, significantly influencing our money mindset. Understanding these influences can help individuals develop more mindful and healthy financial behaviors.


Find out which one affects you, be mindful about your finances, and start making decisions about your spending habits. This might affect your business because you are spending money on things that are not important and hold you back from doing something that you need to invest in your business goals.


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