1. Personal Behavioral Economics

2. Life stressors

3. And, we cannot leave it at home very well.

4. HOT HOT HOT Hot Decisions: Buying groceries when hungry – buy one buy more Sarah MacLachan and the dogs Affected by place, time, body needs

5. COLD COLD COLD Cold Decisions: Facts and figures Analysis of the past experiences Information – internet, readings, advice

6. WARM WARM WARM Warm Decisions: Habit Family background Religious beliefs Biases Past experiences whether related or not

7. Decision triangle There are no right or wrongs here. Each part of the triangle is useful for SOME decisions. It is when we use the wrong decision temperature that we get in trouble. Hot is not better than Cold or Warm. Each has its place.

8. STRESS = HOT As we think of ourselves, we need to remember that stress makes us do HOT things – often things we regret and have to pay for later in our lives. Stress makes us want RELIEF immediately so we react rather than act.

9. Often though… People can’t always explain why they do what they do, or what they want. They just act…

10. How to avoid poor HOT decisions? Research says … 1. SLEEP ON IT… when people remove themselves from the immediacy of the action, they tend to level the temperature of their responses. 2. If you can’t sleep, then take at least an hour to think about it BEFORE you act.

11. 3. Then ….Eliminate choices HGTV only shows three houses to the couple- LOVE IT or LIST IT. Why? Too many choices confuses the issue – we operate best with only two or three choices. Think about asking a crowd where they would like to eat dinner – what do they say?

12. 4. Talk to someone We are very private about money but in a case when you are stressed, not acting as intelligently as possible, and just plain HOT, getting the counsel of a friend may help you see options or better choices…

13. So next time… Put yourself in the triangle when you make decisions- it will help you focus, avoid mistakes and help with “ I should have…” regrets.