The Role Emotions Play In Your Financial Life
Unfortunately money issues prevent us from being rational creatures.
There can be an easy example describing how emotions influence you during your financial solutions. Have you ever had a feeling that you would obviously buy the item, even not seen all the features. You just liked it from the first sight. Many people have such a feeling when they are choosing a house. They see only a house outside and already know they will buy it. And surprisingly such purchases are beneficial in the main.
However there are still a lot of decisions made under the emotional reaction that lead us to wrong solutions. So here are collected the common emotionally made financial actions and the ways to control them.
When You Feel Sad
It’s not a surprise that psychologies call shopping a retail therapy. Purchases can make you happier and let you forget about your problems, at least for a while. But your relief will not be long, it will last until the repayment term of the taken pay day loans online comes.
It’s proved that feeling sad can cause more money spending and make you impatient. Sadness can make you choose the immediate benefit right now instead of realizing the large desirable goal in the future. And this is the main obstacle that prevents you from waiting and saving money for your future stable and healthy finance.
That is why you should replace the purchases with outdoor activity or having fun with friends. And if your sadness is deeper and you can’t get rid of it, you should contact to a therapist.
When You Feel Anger
In such state you can make more thoughtless decisions unwilling to admit your mistakes. And you can go to the bigger risks.
Of course any investor needs to make risky actions to earn more money, however he also needs to be coldblooded and thoughtful not to lose all his fortune.
That is why in order to take right and informed decisions you need to take your time and calm down, and only then think about the financial issue. It can be really hard when you are deep in your emotions, however it’s the only way to save your finance.
When You Feel Fear
Fear plays a great role in your financial actions. When you are scared of becoming a beggar, you start saving money. When you fear of leaving your beloved ones needy, you buy insurance.
This feeling puts you in the opposite position to being angry. In such case you exaggerate risks and don’t see the real situation. Fear can also make you preparing too much and delaying the actions.
To overcome this emotional state you can deal with financial advisors and planners. They can explain you the real situation and recommend how to act according to your conditions. Also having a strict plan can help you conquer fears.
When You Feel Guilt
We all have some internal rules of behavior, and when we violate them we feel guilt. When you offend some friend or a member of your family, you may try to establish relations with expensive purchases.
And for some people this is a real disaster, because the others can play on their feeling of guilt. So they can spend money that is necessary for them.
In such case only limits can help you. And the common limitation is a budget that will make you spend within the definite amount of money.