A person’s “time horizon” is how far into the future they think about and plan for.
Quick quiz:
1.Have you already thought about what you want to do this weekend?
If you have, then your time horizon is at least a week.
2. Have you already thought about where you want to take your next vacation?
If you have, then your time horizon is at least several months.
3. Have you already thought about where you might want to retire?
If you have, then your time horizon is years or decades.
You have experienced a “shortened” time horizon
Have you ever thought there might be an intruder in your home?
Maybe the door was open when you got home.
Maybe the dog was barking in the middle of the night.
Maybe there was a loud noise when no one else was home.
When that happened, did you immediately rush over to your computer to check the balance on your retirement account?
Of course not!
You either called someone (maybe the police), hid somewhere or went to investigate the issue.
You instinctively knew that your retirement account didn’t matter if your life was potentially at risk in the next two minutes.
No matter what you did, the source of the danger dominated your thinking to the exclusion of everything else.
Poverty tends to “shorten” a person’s time horizon
Any time basic needs (food, shelter, security) are threatened, the brain shortens the person’s time horizon.
That makes sense:
- If you have no idea how you will feed yourself tonight, how can you care about next week?
- If you aren’t sure where you are going to sleep tonight, how can you care next month?
- If you have stabbing pains but don’t have the money or insurance, to go see a doctor, how can you care about retirement?
With imminent danger, the human brain focuses on immediate survival. Long-term planning is postponed.
Poverty can cause behavior that looks irrational or irresponsible, but isn’t either
If someone is unemployed, taking a class to improve their job skills “makes sense” from a long-term perspective.
If a person needs help, missing their appointment with a social worker is “irresponsible” from a long-term perspective.
Here’s the thing…
When you have a full belly, a warm bed and safe walls, it is easy to judge the actions of people who lack these essentials.
Have a fantastic week!
Peace,
Ryan