Idiot Money
Go to the bookTwitterSign up for updates
  • Hello.
  • Whole-Brain Personal Finance
  • #1: The correlation between having money, managing it well, and living a good life
  • #2: Don’t know where to begin sorting out your finances? It’s not where you think it is
  • #3: Your relationship with money is complex. But it needn't be complicated.
  • #4: Spending £450k on being bad parents
  • #5: Idiot Profile: Private-Jet Guy
  • #6: What the bloody hell is a ‘relationship with money’ anyway?
  • #7: What fund managers can teach us about what really matters
  • #8: “I want money so I don’t have to think about money”
  • #9: Idiot Profile: An oligarch with a gun
  • #10: If Kanye West were a financial adviser
  • #11: If all the world's a stage, then what does it matter where you stand?
  • #12: Financial Independence: An (Actual) Idiot’s Guide
  • #13: Let’s talk about money, baby
  • #14: New Year's Non-Idiotic Financial Resolutions
  • #15: New year, old message
  • #16: "Just tell me what to do"
  • #17: How to choose better investments
  • #18: You cannot count. This leads you to make idiotic financial decisions.
  • #19: What's your number?
  • #20: 7 magnificent money lessons that have nothing to do with money
  • #21: The merits of money are negative
  • #22: The psychoanalysis of money, or How to screw up your children’s financial worldview
  • #23: The ghosts of money... and how to bust them
  • #24: My favourite way to think about investing, part 1
  • #25: The ABC of money, part 1: the three self-deceptive poisons
  • #26: Consider the pineapple: the perfect symbol of idiot money
  • #27: The ABC of money, part 2: financial nobility, an overview
  • #28: My favourite way to think about investing, part 2
  • #29: The ABC of money, part 3: financial nobility, step 1
  • #30: My favourite way to think about investing, part 3
  • #31: The ABC of money, part 4: financial nobility, step 2
  • #32: The idiocy of ignoring impermanence (the ABC of money, part 5)
  • #33: The six financial stress responses: what's yours?
  • #34: My favourite way to think about investing, part 4: betting beyond the basics
  • #35: The ABC of money, part 6: financial nobility, step 3
  • #36: My favourite way to think about investing, part 5: cost-benefit investing
  • #37: The ABC of money, part 7: financial nobility, step 4
  • #38: The best diet advice and the best financial advice are the same
  • #39: The ABC of money, part 8: The Eightfold Path and interdependence
  • #40: The dance of becoming wiser with money
  • #41: Building a better money brain (the ABC of money, part 9: neuroplasticity)
  • #42: The dumbest damn thing I’ve ever read in personal finance (part 1)
  • #43: The dumbest damn thing I’ve ever read in personal finance (part 2)
  • #44: A story of lions and loss
  • #45: The ABC of money, part 10: what meditation isn’t
  • #46: The ABC of money, part 11: what meditation is
  • #47: Idiot Profiles: Lord and Lady Jewellery Addiction, Teenage Ozymandias, and me
  • #48: Living mindfully with money (the ABC of money, part 12)
  • #49: Give, give, give, me more, more, more
  • #50: Our most costly money problems are the ones we don't see
  • #51: Align what you care for with what you care about
  • #52: Do what only you can do
  • #53: Money for many means happily ever after… but after what?
  • #54: The ABC of money, part 13: financial enlightenment
  • #55: Identifying your hidden money addictions
  • #56: Treating your hidden money addictions
  • #57: Idiot Money Maths #1: How much does it cost to keep you happy?
  • #58: The ABC of money, part 14: the secret shackles of financial freedom
  • #59: The ABC of money, part 15: freedom to, freedom from, freedom for
  • #60: If you go there blindfolded, you probably won’t like where you end up
  • #61: Idiot Money Maths #2: What is your default unit of spending?
  • #62: Balance isn’t stillness
  • #63: A problem shared
  • #64: How to live well, even in a palace (the ABC of money, part 16)
  • #65: Denunciation is still attachment (the ABC of money, part 17)
  • #66: “What do Blackheath people do?” (a story about how not to do financial planning)
  • #67: The ABC of money, part 18: Addicted to a dream
  • #68: What hot new financial knowledge are you likely to find in 2022?
  • #69: Red Pill Financial Planning: Escaping the Money Matrix
  • #70: The nasty narrowness of number-governed living
  • #71: Getting into Financial Flow
  • #72: The ABC of money, part 19: Denunciation bad, renunciation good
  • #73: I, Robot? Money and the misleading mechanisation of life choices
  • #74: Kondo your credit-card statements
  • #75: The rule of 72 (and its oft-overlooked implications)
  • #76: Forget about improving your decisions. Focus on improving your decision-making skills
  • #77: Seeing your financial world more clearly (the ABC of money, part 20)
  • #78: How to lose 2 1/2 stone in 6 months: an intro to the best non-fiction book I've ever read
  • #79: Your money worldview is (literally) half-brained
  • #80: Cost-consciousness beats cost-cutting
  • #81: Financial change that doesn’t start from your financial worldview is selling you short
  • #82: The overlooked truth of reality that is messing up how you live with money
  • #83: How money hijacks your hierarchy of attention
  • #84: The value of (almost) everything to you is nothing
  • #85: Financial philosophy > Financial psychology > Hot investment tips
  • #86: Five regrets of the rich
  • #87: Sum malfunction: a sure-fire way to spot if you’re being a financial idiot
  • #88: The Micawber Fallacy, or what your Dickensian maths misses about spending wisely
  • #89: The tell-tale signs of a poor financial worldview
  • #90: Wanting wisdom, craving financial fortune cookies
  • #91: You don’t need a scammer to be scammed: your desperation for an ‘answer’ will do almost as well
  • #92: Are you reading the wine list the wrong way around?
  • #93: Some personal finance puzzles and how not to solve them
  • #94: The main reason your relationship with money is so messed up
  • #95: The tyranny of the takeaway
  • #96: Deep wealth v shallow wealth
  • #97: What seeing your financial life more clearly looks like
  • #98: Making more of your money isn’t a maths problem
  • #99: Is what you’re doing for and with money working?
  • #100: Where to start, where to go, what to do about what’s stopping you
  • #101: The life cycle of a financial idiot
  • #102: I can read your financial mind
  • #103: Don’t worry about playing a game better when there’s a better game to play
  • #104: Reflections on two years of this newsletter, and why I’m taking a six-month break
Powered by GitBook
On this page
  • Whole-Brain Personal Finance, Lesson #6: The half a brain that controls your financial decisions is the blind half
  • Tunnel vision is for running races, not dancing, and life is a dance, not a race
  • Whole-Brain Personal Finance, Lesson #7: Money is the universal convertible, but prompts a way of seeing that shuts you off from seeing alternative solutions

Was this helpful?

#94: The main reason your relationship with money is so messed up

4th July, 2022

Previous#93: Some personal finance puzzles and how not to solve themNext#95: The tyranny of the takeaway

Last updated 2 years ago

Was this helpful?

Welcome to the Idiot Money newsletter. This week, becoming wiser with money by understanding that money makes you blind to what is most important to be seeing, including:

  • Why, despite promising otherwise, money tends to make you less adaptable, not more.

  • Why you should seek the ‘security’ of a waterfall, not a stagnant pond.

  • And the importance of being on guard not only against stupidly blind thinking, but blindness to the blindness.

Whole-Brain Personal Finance, Lesson #6: The half a brain that controls your financial decisions is the blind half

The way money makes us blind, and the way it makes us blind to our blindness – the way it supercharges our self-deception – are big problems. Because money has such a dominant role in our daily decisions, and by extension how we both shape and express our worldviews.

The exact same thing can be said about the left hemisphere.

Our own culture is unbalanced in the degree to which the left hemisphere’s take predominates. And, unfortunately, the left hemisphere is decidedly imperceptive – and so is unaware there is a problem.

It is, as McGilchrist put it, ‘not ignorance, but ignorance of ignorance, [that] is the death of knowledge.’

Most folk that have read more than the odd bit of airport fiction can valuably and accurately say something about ‘survival of the fittest’ being about your ability to adapt to inevitably shifting circumstances rather than your ability to kill stuff before it kills you.

When it comes to detecting unexpected change, the left hemisphere is relatively blind compared with the right hemisphere.

Because…

Focussed attention, the only kind the left hemisphere can offer, makes us blind to almost anything, however arresting and however close, that happens to be going on outside our sphere of concern at that moment in time.

‘Our fundamental tactic of self-protection, self-control, and self-definition,’ wrote Daniel Dennett, ‘is not spinning webs or building dams, but telling stories, and more particularly concocting and controlling the story we tell others – and ourselves – about who we are.’

We saw earlier the protective shell-like function of this story. When we talk of strengthening it, the immediate temptation is to thicken the shell. However, it is not a fatter fortress we want, but a more flexible one. We see fortresses and spring into a story about strength. To do so is to forget that the fortress’s strength was an adaptation to its environment, and it is the adaptation – the fittedness to its environment – not the thickness of its walls, on which we should focus. When threats change, thick walls are not easy to change with them; the signs of domination can become the seeds of decay. The perfect shield against medieval weaponry becomes the perfect screen for being blind to opportunities.

Much of financial planning is about seeking security. Yet poorly done it is more often the security of a stagnant pond, not a beautiful waterfall.

Tunnel vision is for running races, not dancing, and life is a dance, not a race

The left hemisphere, like money, makes us ‘see’ in a very specific way. A way that is helpful for analysing things within a narrow context, but truly horribly unhelpful at seeing things in a more meaningful and purposeful way… a wiser way.

Staring is a special kind of vision, in itself predatory: left hemisphere attention gets locked onto its target. As a result it more easily misses everything else.

This in itself would be a pretty big issue, worthy of being constantly on guard against. However, it gets worse. Because when you’re stuck in left-hemisphere mode (or when your money-blinkers are welded to your face) you not only don’t see what you should see, which is stupid, but also don’t see the stupidity.

The right hemisphere-damaged subject, overly committed to the left hemisphere mode of simply putting together the pieces, joining the dots, and following procedures, is unable to appreciate that the picture he arrives at is bizarre and incoherent. He placidly accepts the preposterous nature of his conclusions, and, if things seem improbable or awry, he no longer feels the strange or surprising nature of them. They fail comprehensively to alert him, in the way that they normally should, that there is an aberration.

Please don’t think this doesn’t apply to you because you don’t have ‘actual’ brain damage. Because when money gets involved, the effect is the same.

McGilchrist goes on to link this to something we’ve covered plenty of times before, namely how money gets us stuck repeating the same mistakes. How it makes us fail to observe and internalise that whatever we’re sure will work this time didn’t work last time, or didn’t work for the people that tried it a thousand times before we did.

In the modern Western world, we are constantly crashing, and puzzled as to why; constantly faced with paradoxical outcomes to our actions […] We often find that we strive for something and achieve its precise opposite. Why is that? I suggest it is because our currently dominant model of reality is mistaken.

This realization [being drawn more and more to the ‘poor’ Eastern side of Berlin] unsettled my sense of personal progress and education: it was possible to have freedom and plenty in the West and craft an empty life; it was possible to ‘have nothing’ in the East and create a life of intimacy and dignity and beauty.

As I commented then:

Does it strike you that it’s possible to read a line like that and not be stopped by its strangeness? You may have just done so. If you live in a world where you can (without noticing) in effect say ‘intimacy and dignity and beauty are nothing’ then it’s probably time to question that’s the right world to live in.

And yet how many – despite feeling like something is off, or ‘missing’ despite ‘having everything’ – ever question if ‘having’ another ‘thing’, rather than being the answer, is actually the problem?

When [the left hemisphere] is presented with evidence that what it is doing is not working, its invariable response is first to deny that there is a problem, but, if pushed, to respond not that we have done too much of something that is ineffective, but that we simply need to do more of it: because that’s what its theory dictates, and for the left hemisphere theory trumps reality.

We keep making the same mistakes, oblivious even to the fact that, despite not working, they are, in fact, mistakes […] Mistakes rooted in a belief that it’s external circumstances that determine the quality of a life, rather than how well one is set up to dance with those circumstances. This belief leads people to dedicate their resources to changing the quality of their lives by changing their worlds, rather than their worldviews.

Whole-Brain Personal Finance, Lesson #7: Money is the universal convertible, but prompts a way of seeing that shuts you off from seeing alternative solutions

A little bonus lesson on inductive reasoning and the Einstellung effect:

Inductive reasoning lies behind the so-called Einstellung effect. This is the tendency to get fixed in one’s method of approach, so that one fails to see other, better, ways of seeing a situation, or of tackling a problem. Once one has mastered a way of doing something that works well enough in one situation, one tends to carry on applying the same method to situations or problems in which it is inferior or inappropriate.

Back to McGilchrist:

In a test devised by Abraham Lucins in 1942, [The Einstellung effect] increased with age in adults, and was somewhat more marked in females than in males. […] It has since been found, as mentioned, to be less prominent in non-Westerners, who are more flexible in their thinking.

That would be the West that is increasingly beset by a hyper-individual, excessively narrow-minded, money-based worldview.

Westerners ‘may never even consider that the problem could have multiple solutions, until explicitly told “Don’t be afraid to try new things” which clearly states the possibility of multiple solutions.’

The left hemisphere, in effect, ‘says’: ‘It’s seemed OK round here to date, so there isn’t a problem.’ The right hemisphere is on alert for things you should adapt to. ‘The left is too busy getting the next bonus.’

Next post in the Whole-Brain Personal Finance series:

You know money with only half a brain. And it’s the stupid half. This prevents you making more (a lot more) of your money. This is part of a long of short lessons mapping the best non-fiction books I’ve ever read (Iain McGilchrist’s The Master and His Emissary and The Matter with Things) to our relationships with money, in the hope of helping you do something about this in the most foundationally practical (long-term workable!) way.

(While I’m here, for those of you who’ve just had the words ‘Dunning’ and ‘Kruger’ catapult into your neocortex, you may like to read .)

Despite promising some nonsense about ‘’, money (at least in the typical way it is attended to) doesn’t make adapting to shifting circumstances easier. It makes it harder. Because it reduces everything to ‘buy the answer’, which, if repeated often enough, leaves its believer incapable of doing anything other than opening their wallet. It excuses rather than encourages character development.

Think of all the common uses of big chunks of cash – are they not to try to control circumstances? Are they not vain attempts to fix everything external in place, ?

As I wrote :

And :

I’m reminded here – as I hope one or two of you may be – of the Krista Tippett passage I quoted in , in which she recounts a story from her days as a foreign correspondent in then-divided Berlin, that made her rethink the role money played in a life well lived, as it had been shaped by growing up in money-blinkered America:

Which is another way of saying what I said :

Which is about a fine a summary of both believing the answer to a problem is ‘more money’, and most of the financial-planning world’s box of sales tricks. (See also from me on local and global maxima).

series
this
opportunities
as if then, and only then, one may live happily ever after
here
here
Idiot Money #63
here
this
#98: Making more of your money isn’t a maths problem