A lot of people like to think they’re making decisions based on logic and facts, but the truth is emotions typically play a role in our decision-making process. As you can imagine, we have many strong feelings when it comes to our money and that can become a problem for your retirement plan.
As people we always have to deal with emotions. Good and bad, up and down, emotions are a part of our daily lives and act as motivation in most cases.
But do you let emotions seep into your financial decision-making? That’s the question we want to explore today on Her Wealth Matters. This isn’t a conversation exclusively for women. We are all pushed by different emotions and it often causes us to make mistakes with our money. Fear and greed often lead the way but else drives us?
Let’s take a look at some of the poor decisions we’ve seen people because of emotional decision-making. J’Neanne will share examples she’s personally witnessed along with some of the situations she helped her clients work through. If we can set aside that emotion and replace it with logic and facts, it’ll benefit us greatly in our financial planning.
So we’ll also talk about the ways J’Neanne has been able to merge the math and the emotion to come to an solution and decision that works across the board. And we’ll share the times where emotions might be a good thing. That motivation can be turned into a positive in certain circumstances.
We’re talking all about emotions and decision-making and it’s time to get started.
Listen to the full episode or click on the timestamps below to hear a specific segment.
[0:56] – Let’s talk about emotional decision-making.
[1:30] – Which emotions are likely to drive financial decisions?
[3:02] – Fear also keeps people from getting back into the market.
[4:47] – Greed is another driving factor, especially when things are going well.
[5:32] – Quit letting those emotions control your decisions when it comes to finances.
[6:05] – Both genders react differently at times but we all have confirmation bias and pay attention to the info that supports our opinions.
[7:06] – We can’t completely shut off emotions so when is it okay to let them push us in a certain direction?
[8:07] – Aversion bias is another thing we deal with.
[9:01] – J’Neanne shares an example of a time she was able to make the math match the emotions for a client.
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