"People don't buy what you do, they buy why you do it".
Simon Sinek
Paul McLean's triune brain suggests that our brain has three major information processing areas, each of which represents a part of who we are: from our most primitive side, which relates us to reptiles, through the emotion processing centre to the higher function area, the rational side that distinguishes us as a species. These three distinct areas are key when it comes to making decisions, and how we use and organise them will determine both our present and certainly our future.
If, before making a decision, we would stop and think, we would start from the why: what is the reason behind what you are going to do. The important thing is not so much what is what you do as why what you do: the essential thing is to know why you do what you do. These two questions are completed by the how to which Nietzsche referred: "He who has a why will almost always find the how"..
On the contrary, acting in survival mode would first activate the reptilian brain (what?), then the limbic brain (how?) and finally the neocortical brain (why?). We would reason after acting, when we can no longer do anything.
The reptilian brain automatic decision making with the basic objective of the survival: en instinctive. It is estimated to be responsible for up to 35% of the purchasing decisions we make. If that ancient brain is the one that ultimately determines the most basic decisions in your life, do you want to feel like you have the power of a reptilian brain?
Besides impulses, there are other aspects to consider. Why do you buy expensive brands? What makes you want that pair of shoes you saw so badly? Why, when you've had an argument with someone and you're shopping, do you take food you won't eat without feeling guilty? The answer lies in your emotions. The emotional brain is responsible for the 50% of the decisions we make: buying preferences are carried out in this part of our brain. Believe it or not, emotions always come into play and we then rationalise them to justify them.
We would then be left with the fact that the rational brainthe neocortex, is responsible for the 15% in the purchase decision making process. Because it is not decisive, this structure is the one that marketing, advertising and sales try to stimulate the least. Think of advertisements for new smartphones, cars or perfumes: do you remember megabytes, engine power or ingredients in their composition? Marketers try to strike a chord to sell a feeling associated with the product, rather than the product itself.
Desires, which by their very nature are physical and emotional impulses, do not come out of nowhere, they can be both conscious and unconscious. Therefore, if we get into the habit of stopping and thinking before spending, we will be aware of the reasons and will be able to decide rationally. If you are very impulsive and the reptilian brain decides for you, you have to stop before you act. If you are very emotional and spend on things that are not useful or that you have used to compensate for other needs, you have to stop before you act.
What is outside is a reflection of what is inside. This statement is great news: if the material has its origin in the immaterial, when you control your emotions and thoughts you will gain control over the results. Knowing how to explain why we do what we do is the only way to accept the consequences and live in coherence and peace. When the result is not as expected, you will understand why it happened and you can act to change it or simply accept it. People who can explain their why are more likely to succeed.
You always have a good reason for doing what you do. By identifying why you do something you don't like, such as excessive shopping or saving, you will see what need you are fulfilling and you will be able to find a better way to do it. If you don't, it will be very difficult to achieve lasting change. The emotions that you cure with money are so strong and primary, and so necessary to satisfy, that it is worth thinking about how you can take care of yourself by being aware of how you do it so far and whether you are happy with the results you have achieved.
Instincts and emotions must be analysed to make the right decision. Use "why" to appeal to emotion. Thinking, feeling and acting is the sequence that leads to success. If we decide to take charge and outsmart our mind, we can turn it into our best ally. But if left to its own devices, it can become our most fearsome internal enemy. Let your actions be the result of your thoughts.
The references in these articles to brain structures are made in a simplified, not exhaustively scientific method, in order to facilitate their understanding and application to everyday life.
Next week: The triune brain in personal finance.
Rocío Ledesma del Fresno
Summa Cum Laude graduate in Business Administration and Management with a Minor in Economics from The American University of Paris, as well as a Master in Finance from ICADE. She recently completed a Master in Emotional Intelligence at the Hune Institute.
For 25 years she was Director of the Innovation and Product Departments at Banif and Andbank. She is currently Manager at Dextra Corporate Advisorsindependent boutique of M&A and corporate, and director of Navis Capital Desarrollo, SGEIC, an alternative investment fund manager registered with the CNMV. She is also a member of the association WA4STEAMan international community of women business angels seeking to expand the female presence in STEAM fields by providing not only capital, but also by becoming a strategic partner for future leaders.