Hindsight is 20/20, Foresight is legally blind

Get a high-five from your future self.

As humans are great at looking back and seeing what we should have done, and lamenting on missed opportunities, or 'only ifs'. We are not, however, nearly as good at knowing what we will need in the future, taking action today to improve our own tomorrow. This isn't about willpower or discipline, it's psychology, and once you understand these patterns, you can build habits and systems that practically run themselves.

This facet of human nature has strong implications when it comes to money. It's common to wish our past selves had made different choices while still not changing the habits and behaviours of our present selves. Even once we acknowledge the pattern, we rarely make the cognitive leap to correct it on behalf of our future selves.

To address the cognitive disconnect between present choices and future impact, first we need to understand the psychology, the 'why', then we learn the tools to override our natural inclinations.

Before we dive in, I want to ensure one of my key points is made very clear: if you struggle to plan for your financial future, you're not broken, and you haven't failed. This challenge is deeply human, it's literally how our brains are wired. Understanding this truth isn't meant to excuse inaction, but to free you from the shame and guilt that may be blocking your path forward. When we release that burden, we create space for curiosity and learning. This shift in perspective isn't just helpful, it's essential to your financial wellness journey. Lasting change begins with understanding and compassion for yourself.

Why We Sabotage Future Us (and don't even mean to)

We are going to put names to the cognitive patterns that drive our decisions so we can design better systems around them. Here are the three main culprits:

🧠Present Bias: We tend to overvalue what we want now and undervalue what we need later. That $16 lunch when you're at work feels more compelling than the $4,160 it could become in your investment account over a year, even though rationally, we know which choice serves us better.

🕰️Temporal (or delay) Discounting: This describes how our brains systematically devalue rewards and consequences as they move further into the future. A $10,000 emergency fund feels less motivating to build today than the immediate satisfaction of a weekend getaway, even though we intellectually understand the fund's greater long-term value.

👤Future Self-Discontinuity: Research reveals that many of us feel as emotionally disconnected from our future selves as we do from strangers. Our brains literally process our future self as "someone else" making it neurologically challenging to sacrifice present comfort for future benefit.

This explains why building large financial goals, saving for retirement, and building wealth can feel like an uphill battle (on a pebbled path...wearing flip-flops). But once we understand these patterns, we can strategically work around them.

5 Evidence-Based Strategies You Can Implement Today

We have the knowledge, now we can learn the tools that will help us overcome the cognitive hurdles. These aren't just feel-good suggestions, they're practical applications of behavioral finance research designed to hack your brain's default wiring:

1. Automate Your Financial Architecture: Remove decision fatigue from the equation by automating transfers to savings and investment accounts. Even $50 a month, if that's what you have to spare, builds meaningful momentum. The key is consistency over perfection; automated systems ensure you're building wealth regardless of how motivated you feel on any given day.

2. Create Emotional Anchors for Abstract Goals: Transform generic "savings" into specific, emotionally resonant objectives. Instead of "emergency fund," try "Job Freedom Fund" or "Sleep Well at Night Account." This linguistic reframing helps your brain connect present actions to future emotional states, making the goal feel more concrete and personally meaningful.

3. Strengthen Future Self-Connection: Use visualization techniques to bridge the psychological gap between present and future you. Write detailed scenarios about your life in 5, 10, or 20 years. What does financial security look like? How will it feel to have options? This isn't wishful thinking, it's strategic mental rehearsal that research shows increases follow-through on long-term goals.

4. Design Decision-Making Triggers: Create predetermined behavioral rules that capitalize on key moments:

• "When I receive a bonus, 50% goes to investments before I adjust my lifestyle."

• "When I pay off debt, that payment automatically redirects to my TFSA."

These "implementation intentions" remove in-the-moment decision-making when you're most vulnerable to present bias.

5. Practice Strategic Self-Compassion: Dwelling on past financial mistakes creates emotional interference that impairs future decision-making. Instead, treat past choices as data points that inform better systems going forward. Your previous self made decisions based on their knowledge, circumstances, and emotional state at the time—use that information to design more robust frameworks now.

The reality is that your brain's default programming isn't optimized for modern financial planning. But your systems can be. With intentional design and the right behavioral nudges, you can create a financial life that consistently serves your long-term interests. The time is going to pass either way, so pick one tool to implement today and start to transform your financial future.

Can you see your future self giving you a high five? I can!