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#574: Understanding the Psychological Impact of Financial Stress, featuring Dr. Sunita Sah

#574: Understanding the Psychological Impact of Financial Stress, featuring Dr. Sunita Sah

      What would you do if someone in a position of power asked you to do something that felt incorrect? Many of us like to believe we would voice our concerns, resist, and hold our ground. However, research presents a very different reality.

      For instance, when Yale researchers carried out a well-known experiment in the 1960s, they discovered that 65% of participants would deliver what they thought were fatal electric shocks to another person—simply because an individual in a lab coat instructed them to do so.

      Today’s guest has dedicated over 15 years to examining why individuals obey authority, even when every instinct tells them not to. This inclination to follow authority figures—including financial advisors, real estate agents, and car salespeople—can have serious financial repercussions.

      Dr. Sunita Sah started her professional journey as a doctor in the UK’s National Health Service. During a particularly challenging time as a junior doctor, she agreed to meet with a financial advisor who reached out to her at work. This encounter raised questions that would influence her career: Why did she feel compelled to trust this advisor, despite realizing he had a conflicting interest?

      Currently, she serves as a tenured professor at Cornell University, where her innovative research on compliance and influence has been highlighted in The New York Times and Scientific American. Dr. Sah has advised government bodies, participated on the National Commission on Forensic Science, and aids leaders in grasping the psychology behind why we agree when we wish to disagree.

      Whether you're consulting a financial advisor, negotiating a home purchase, or discussing costs with a contractor, understanding the psychology of compliance could save you a significant amount of money and aid you in making wiser financial choices. Today's discussion is not only about psychology but also about safeguarding your finances by learning when and how to decline.

      About Dr. Sunita Sah

      Dr. Sunita Sah is a tenured professor at Cornell University, focusing on organizational psychology. Her research examines how and why individuals comply with authority, even when it contradicts their better judgment. Having previously worked as a physician in the UK's National Health Service, Dr. Sah offers a distinct viewpoint on human behavior and decision-making. Her research has been featured in major publications such as The New York Times and Scientific American, and she has held a position as a Commissioner on the National Commission on Forensic Science.

      Timestamps:

      Note: Timestamps may differ on each listener's device due to variable advertising durations. The approximate timestamps may vary by several minutes owing to differing ad lengths.

      0:00 Intro

      4:00 The majority follow authority despite their own judgment

      7:01 Dr. Sah's encounter with a pushy financial advisor while a young doctor

      9:55 The drawbacks of conflict-of-interest disclosures

      12:16 “Insinuation anxiety” leads us to yield under pressure

      14:13 The “sales pitch effect” generates unwanted obligation

      17:29 Growing up as a South Asian daughter conditioned to comply

      20:34 Career choices: pursuing passion versus fulfilling family expectations

      27:29 The Milgram experiments highlight our obedience tendency

      35:28 Utilizing “quiet defiance” to withstand pressure

      42:20 Why managers often misinterpret employee silence

      46:43 Five aspects that differentiate consent from compliance

      53:03 Cultivating defiance through small daily actions

      58:13 The significance of pausing in decision-making

      1:02:54 Five stages to identify and act on resistance

      1:18:22 How to develop your own defiance style

      Resources Mentioned in the Episode:

      – Website: Dr. Sunita Sah

      – Newsletter: Defiant By Design | Dr. Sunita Sah | Substack

      – Connect with Dr. Sah on LinkedIn: Dr. Sunita Sah

      – Follow Dr. Sah on Instagram: Dr. Sunita Sah ✍🏽 Author of DEFY (@drsunitasah)

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#574: Understanding the Psychological Impact of Financial Stress, featuring Dr. Sunita Sah

What would you do if an authority figure instructed you to do something that seemed incorrect? Many of us prefer to believe that we would voice our concerns, resist, and maintain our position. However, research indicates a contrasting reality.