April 29, 2014
Human beings are emotional creatures. Why must we learn to harness those emotions when dealing with money? Consequences?
Human beings are emotional creatures. Why must we learn to harness those emotions when dealing with money? Consequences?
If you let fear or greed take to much control over your investing you will make unwise choices. If you let fear be the decision maker then you will stay out of the market or go with a investment that you think is safe and heavily affected by inflation. While greed can get you in just as much trouble, if you are to greedy you may try to beat the markets or get caught up in a bubble that pops when your still in it at the top. Some emotions can help you, like determination and duty. You need to have your own drive to invest and save, you need to want to, you cant just be told to. You need to know why to invest and want to do it, the more you can know the better.
Another really good answer, Garrett. Let’s review.
Emotions can easily override our rational mind when it comes to making decisions about the money that is coming in and going out of our lives. We MUST learn to harness those emotions if we want to to control our money instead of letting our money control us. They key is to accept who you are and that means identifying the triggers that cause you to make bad decisions (going “shopping” when you don’t have the money is one example). Know thyself!