After two months of pause, your favorite weekly Monday newsletter on neuroscience life hacks & the latest news from the world of technology is back.
September to me always feels like a “Second New Year,” a season of fresh energy and sharper focus after the holidays.
And on this topic of focus, I’ve been speaking in Germany at the prestigious CAPinside Investment Congress. More precisely, on the focus when it comes to money, and on the neuroscience behind investment behaviours.
Let’s quickly think about it: Our brains evolved in nature, in tribes that were doing trading, with no banks, no financial markets, no spreadsheets around. Today? Humanity moved from trading shells, goods, and food to hyperdigitalized, automated financial systems at a global scale. And this scale messes with our decisions, especially in leadership and investing.
Here are my top5 neuroscience insights into how the human brain struggles with modern money:
1. Loss hurts more than gain feels good
Neuroscience shows that we process financial loss in the same brain regions as physical pain. That’s why losing $100 hurts us more than gaining $100 feels good. This phenomenon is called loss aversion, and it’s why people often make irrational financial decisions just to avoid or recover losses. A gambler losing their family’s savings at the casino and a CEO refusing a risky innovation because the chance of losing feels too scary have more in common than one might think
2. Money activates the same reward system as drugs and alcohol
Getting money lights up the nucleus accumbens, a core part of the brain’s dopamine system. That’s why gambling apps or sales can feel addictive. That’s why the dopamine hits from stock apps feel like slot machines. It’s also why working in finance often comes together with drugs, alcohol, and oversexualization: money loses purpose and becomes an addict’s quick fix, just like other easy dopamine sources
3. We value money more when it’s physical.
Studies show people spend less when using cash than with cards or mobile payments. Why? The pain of paying is stronger when we see real money leave our hands. The more abstract money becomes, the less emotional we get. Try to spend real money as often as you can, or control your credit card behavior.
4. We spend emotionally, then justify logically.
Your limbic system acts first, your logic center justifies after. We are emotional creatures after all. In private just as much as in business. The advice? Sleep two nights over each purchase you want to make. This will filter out the impulsivity from the truly relevant choices.
5. Rich people aren’t necessarily happier; just less stressed.
If you can manage your stress and inner peace, you’ll be richer than a stressed rich person. The brain’s reward system reacts more strongly to the anticipation of money than to money itself. You feel a dopamine spike when you expect a bonus— But when it comes? Meh.
The brain adapts fast. And that $20k raise? Feels normal in 3 weeks. Financial leadership isn’t just about strategy. It’s about understanding biology. And peace in mind isn’t about money. It’s about gratitude.
And just like each year’s September gives us a chance to reset our values, understanding the brain’s automatisms helps us choose clarity over compulsion, and meaning over mere numbers.