How Behavioural Science Boosts Your Finances With Jaskiran Mangat
Building better financial habits does not start with numbers, it starts with understanding behaviour.
In this episode of The Wallet, Emilie Bellet speaks with Jaskiran Mangat, financial adviser, coach and former banker, who focuses on the link between money, mindset and behaviour.
Jaskiran shares how cognitive biases, habits and emotional patterns influence the way we earn, spend, save and invest, and explains how behavioural science can help us build better systems, overcome self-sabotage and make more confident financial decisions over time.
Trigger warning: this episode includes references to suicide and difficult life circumstances.
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What is behavioural science, and why does it matter for money?
Behavioural science is the study of how we think, feel, and act, especially when making decisions. When applied to money, it explains why financial behaviour is rarely rational.
Money decisions are shaped early. Our relationship with money starts forming in childhood, influenced by family dynamics, culture, and environment.
That means:
Financial habits are often emotional, not logical
Knowledge alone does not change behaviour
Without awareness, patterns repeat automatically
Understanding behaviour gives you leverage. Instead of forcing discipline, you design systems that work with how your brain already operates.
The cognitive biases that hold us back
Several behavioural biases make long-term financial decisions harder.
1. Present bias
We prioritise immediate rewards over future benefits.
Saving or investing requires sacrificing something today for a future version of yourself that feels abstract. The brain struggles to act for something it cannot clearly visualise.
2. Loss aversion
We feel the pain of losing money more strongly than the pleasure of gaining it.
Saving £100 can feel like a loss today, even if it benefits you long-term. This makes investing and saving psychologically uncomfortable.
3. Optimism bias
We assume things will “work out” without concrete action.
This often shows up in under-saving for retirement or relying on minimal contributions without understanding the outcome.
4. Herd mentality
We follow the behaviour of others, even when it conflicts with our own goals.
Spending increases in social environments, often leading to decisions driven by belonging rather than intention.
Structural reality
For some, thinking about the future is not just difficult, it feels irrelevant.
When environments are shaped by instability, poverty, or high mortality, long-term planning can feel disconnected from reality. Behaviour cannot be separated from context.
Why we sabotage our own financial progress
Self-sabotage is rarely about lack of discipline. It is often rooted in:
Fear
Low self-worth
Avoidance of discomfort
Spending, avoiding financial decisions, or under-earning can act as coping mechanisms.
A critical question sits underneath financial behaviour: Do you believe you are worthy of building and keeping wealth?
Without addressing that, progress becomes unstable. You can reach a financial milestone and still feel misaligned, leading to cycles of over-spending, under-earning, or imposter syndrome.
How to recognise your patterns
Start with observation, not change. Track one week of behaviour:
What you spend
When you spend
Why you spend
Use existing tools, banking apps, or simple notes. The objective is to establish a baseline.
Without clarity on current behaviour, any strategy becomes guesswork.
Five behavioural strategies that actually work
1. Automate everything
Set up automatic transfers for bills, savings, and investments.
This removes decision-making and reduces temptation. What remains in your account is what you can spend.
2. Set goals based on life, not money
Frame goals around outcomes:
A degree
A move abroad
Financial independence
Money becomes a tool, not the objective.
3. Use SMART goals
Break large goals into:
Specific
Measurable
Achievable
Relevant
Time-bound steps
This reduces overwhelm and builds momentum through visible progress.
4. Practise habit stacking
Attach new behaviours to existing routines.
Example:
Review finances with morning coffee
Read financial content daily at a fixed moment
Consistency becomes automatic when tied to habits already in place.
5. Apply the 24-hour rule
For non-essential purchases, wait 24 hours.
Most impulses disappear. This reduces emotional spending and retrains decision-making.
Small shifts that create disproportionate impact
Reframe saving as giving to your future self
Replace FOMO with JOMO (joy of missing out)
Celebrate small wins to reinforce behaviour
Reduce exposure to environments that trigger overspending
Behaviour change is not intensity, it is consistency.
The psychology of earning more
Earning more is not only a market problem. It is also behavioural.
Common blockers:
Fear of rejection
Fear of failure
Low perceived value
External validation dependency
A key shift is moving from money to value.
You are not asking for money. You are exchanging value.
When you articulate:
Skills
Impact
Outcomes
Negotiation becomes grounded, not emotional.
Reframing negotiation
A useful principle: A good negotiation is one where neither side gets 100% of what they want.
This removes the expectation of perfection and reduces anxiety. Additional shifts:
Rejection is information, not identity
Imposter syndrome can signal growth, not inadequacy
Growth mindset increases willingness to take financial risks
How to approach big financial goals without overwhelm
Long-term goals fail when they remain abstract.
Use visualisation:
What does your life look like?
How do you feel?
What does “enough” mean?
Then work backwards:
Timeline
Milestones
Dependencies
Financial planning becomes clearer when anchored in a concrete vision of life, not just numbers.
The role of mental and physical state
Financial decisions are not purely cognitive. They are physiological.
Stress, anxiety, and emotional load directly impact:
Spending
Risk tolerance
Decision quality
Simple practices matter:
Pause before decisions
Regulate breathing
Notice physical tension
Clear decisions require a regulated state.
Final thought
Money behaviour is not random. It is patterned, learned, and reinforced over time.
Change does not start with more information. It starts with awareness, then systems.
When behaviour shifts, financial outcomes follow.
