Time Inconsistency: Why We Spend Today What We Should’ve Saved for Tomorrow
<p>Why is it so easy to slip into impulsive eating when our diet has been working out so well? To splurge our money on random goodies, even though our budget was going so well? To binge-watch the entirety of Breaking Bad, even when we have an assignment due tomorrow? Why is it so hard to control these seemingly reckless decisions, even when we can rationalize that they will harm us in the long run?</p>
<p>Through the behavioral economics concept of time inconsistency and hyperbolic time discounting, I hope to bring a better understanding of why we overweight the present, and discount the past incorrectly, resulting in many impulsive actions. Ranging from financial decisions like investing or gambling, procrastination, or simply impulsive decisions we see ourselves falling victim to, I hope this article sheds some light on why we do these things, so we can make better, more informed decisions in the long run.</p>
<p>First, it's good to go over the root of all decision-making processes relating to time.</p>
<p><a href="https://medium.com/the-catalyst-by-alumnus-capital/time-inconsistency-why-we-spend-today-what-we-shouldve-saved-for-tomorrow-c5afe92af883"><strong>Read More</strong></a></p>