Neurofinance can be quite useful in mapping and conceptualizing financial transactions. But what is neurofinance? Neurofinance combines neuroscience with strategies to decode decision-making patterns and read the story in financial statements. When you are close to a transaction, in the thick of it, it can feel incredibly complex due to the number of moving pieces and competing interests involved. It is easy to lose perspective and become myopic when you are mired in all of the details. Neurofinancial training helps you separate and categorize the pieces so you can have a clearer picture of what’s going on.
Common Transaction Components
Take financial transactions, for example. In reality, all transactions share common components:
- Someone is getting something – or wanting to get something.
- Someone is giving something – or wanting to give something.
- That which is being given or received is going to be used (in the case of a resource), owed (in the case of a loan) or owned (like a property.)
- In any of the above cases, the contract will be fulfilled now (immediately, like a cup of coffee – paid for and consumed) or later (like a building – leased and returned at the end of the term.)
Financials As Storytelling
Neurofinance takes the financial complexities and turns it from a mathematical exercise to storytelling in financially acceptable language. With sufficient perspective and insights into the motives of the parties involved, a complex transaction can be distilled into the above noted components to better understand what is taking place and why. Neurofinance takes research and gives it practical applications in the business world.
Neurofinance: Insights for Better Business Outcomes
Would you like to be able to access more financial insights driven by brain science to get you on the way to better financial footing in your business? Schedule your free 20 minute consultation and learn how neurofinance can be applied in practical ways to help you understand your business better and make more sound financial decisions.