Behavioral finance research examines the psychology and cognitive processes which engage when people negotiate a salary or make an important decision. Applying behavioral finance theories to situations beyond money and investing can be useful, as they provide humans with a metric to quantify the choices that they make everyday.
When people understand the psychological and emotional variables that affect their decision-making, they can live their lives more intentionally. More importantly, this knowledge functions as an antidote to the sense of inertia which often makes people “feel struck.” Writing for New York Magazine, Melissa Dahl articulates this insight into human behavior: “The big decisions of your life are hardly decisions at all,” she says. “People are drawn to the status quo.”