The ostrich effect: why we hide from problems

Some people don’t like budgeting, others hate paying bills. Still others do not look into the mail so as not to see a notice from the bank (although they know that they owe it). In short, some of us are ostriches. And I’m also a former ostrich.

Ostriches are funny creatures, which are credited with the habit of sticking their heads in the sand in case of danger. The method of protection is completely stupid, but the metaphor is excellent. We hide from trouble. We do not go to the doctor so as not to know the diagnosis, otherwise we will have to be treated. We are not in a hurry to spend our hard-earned money on school fees or water bills. We prefer to hide from the ruthless reality in a dark and stuffy mink. It’s more convenient than paying bills.

In behavioral economics, the ostrich effect is the tendency to avoid negative financial news. In psychology, this phenomenon is seen as the result of an internal conflict: rational thinking requires attention to important matters, emotional thinking refuses to do what hurts.

The ostrich approach to solving financial problems is to ignore them for as long as possible, and when complete collapse begins to threaten, panic and desperate throwing. The habit of turning a blind eye to the harsh truth not only keeps you from trying to deal with difficulties, but also inevitably leads to complications.

In the not too distant past, I too diligently ignored utility bills until another blackout warning forced me to act without delay. The inner ostrich kept me under constant stress, throwing up late fees, penalties for outstanding bills, fees for exceeding the credit limit. Small unresolved problems snowball into big problems. However, there are other varieties. Some simply do not think about a future pension, because there are still 20 years ahead, or carelessly use a credit card until the debt becomes catastrophic.

How to re-educate an ostrich

To change, we must want to change — this is the basic law of psychology. Ostrich habits will not go anywhere until we understand that this is no longer possible. Attempts to hide from the harsh reality lead to too dire consequences, so most sooner or later decide to come to their senses.

If you’re an ostrich, exhausted by endless running from problems, try a few strategies.

Automate everything you can

Automatic payments are a lifesaver for these people. It is necessary to configure the templates once, and the rest will be done by the system. Of course, entering numerous logins and passwords and setting the due date for each invoice is an unpleasant experience. But the effort expended is rewarded by the fact that after that you can forget about the terms of payments and breathe a sigh of relief. The process will take no more than two hours, even if you have to call service providers.

Trust facts, not judgment

All ostriches have a peculiarity: we do not like to invest in something that will certainly pay off in the future. We overestimate costs and underestimate benefits, and as a result, the mental calculator freezes and chooses to procrastinate.

Facts help to prevent erroneous conclusions. For example, I hate unloading the dishwasher. I always put off this boring task, but one day I became interested in how much time it takes. It turned out to be less than three minutes. Now, when I want to dodge again, I remind myself, «Three minutes!» — and usually the focus works.

On the other hand, you need to learn how to determine the «cost of avoidance.» Jokes are jokes, but the consequences of ostrich behavior are sad. Late credit card payments damage your credit history and undermine your financial situation. If an accident occurs, expired insurance can result in thousands of repair costs, not to mention administrative penalties. Unpaid bills or taxes can result in huge fines and even jail time. The damage that ostriches inflict on themselves and loved ones is not funny.

There are online services and applications that show how much we overpay annually for exceeding the limit on the card. With the help of special platforms, you can track your credit score and watch it skyrocket when we act like ostriches and skyrocket when we automate payments. These financial “advisers” are a testament to how expensive our procrastination is.

Time and effort are also important. Really, what should we pay the bill for? If you do it right away, via the Internet or a terminal, it will take no more than five minutes. But once that account falls into the «Bermuda Triangle» of pending cases, it’s all over. The whirlpool slowly but surely pulls us headlong.

Break the system

The expression «Bermuda Triangle» is figurative and does not mean that you need to save yourself at any cost. Doing one item from an endless list is already good, it will give the necessary push to cope with the rest of the cases. Set aside five minutes and pay at least part of the debt is better than sitting back. Inertia works in our favor, because what has been started is easier to continue.

Give yourself compensation

Do not forget to combine business with pleasure. Relaxing with a cup of cocoa after clearing up the bills is not a way to make the process less painful? Eating a piece of cake, watching a new episode of your favorite series is also a good motivation. Make up rules for yourself: “I’ll collapse on the sofa with a book only after I close one financial task!” is another option to focus on pleasure rather than effort.

Habits are hard to change, you can’t argue with that. Give yourself a break and start small. Automate one account, pay one invoice. You know that every journey starts with the first step. Make it. Give it five minutes right now.