emotional decisions http://www.wisebread.com/taxonomy/term/9546/all en-US Your Finances: 4 Emotional Decisions to Avoid http://www.wisebread.com/your-finances-4-emotional-decisions-to-avoid <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/your-finances-4-emotional-decisions-to-avoid" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://www.wisebread.com/files/fruganomics/imagecache/250w/blog-images/woman_deciding.jpg" alt="Woman making a decision" title="Woman making a decision" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Personal finance concepts are generally straightforward and simple, but some people struggle with building a solid financial foundation when emotions get involved. Here are four ways people often act emotionally instead of logically that you should watch out for. (See also: <a href="http://www.wisebread.com/knowing-your-triggers-can-prevent-stupid-spending">Knowing Your Triggers Can Prevent Emotional Spending</a>)</p> <h3>Changing Banks Because Everyone Else Is</h3> <p>The &quot;it&quot; thing to do these days seems to be changing your bank, but make sure that you are thinking things through before you act. Are you really paying anything for your account? You may not think that the banks are treating their customers fairly, but if you look at your statement and you never incur any fees, don't blindly go to a credit union and say &quot;sign me up&quot;.</p> <p>There are lots of reasons to jump ship, but make sure you know exactly how such a move is going to affect you.</p> <h3>Buying Stocks When&nbsp;They're High and Selling When They're Low</h3> <p>This is true even when we invest in index funds. Most people can't wait to deposit their money into their investment accounts when the market is doing well and dread the same process when market conditions seem tough. If you want to increase your return, why not put a bit more into the market on a down day and less when it's on an up day? Small differences like this may seem meaningless but will add up overtime.</p> <h3>Staying in a Bigger House Than You Need</h3> <p>During the housing bubble when home prices went up practically every day, many families decided to move into bigger and more expensive homes even if renting would have been the better choice. Whether they can or cannot afford the mortgage doesn't change the fact that the extra mortgage payment is coming out of money they could use for other things. Is that extra bedroom that you never use worth not being able to take a nice vacation with your family a few times a year?</p> <h3>Keeping Up With the Joneses</h3> <p>When a few of your neighbors change their cars, your car always seems a bit older. When a bunch of your friends shop for new clothes, it's seems natural that you would get something too. If all your friends get a <a href="http://www.wisebread.com/tips-for-eating-out-cheaply">drink during dinner</a>, it's much more likely that you will just automatically think of something to order.</p> <p>There are lots more examples. I highly encourage you to list your expenses to remind yourself how you end up spending emotionally, so you won't repeat the same mistakes again.</p> <a href="http://www.wisebread.com/your-finances-4-emotional-decisions-to-avoid" class="sharethis-link" title="Your Finances: 4 Emotional Decisions to Avoid" rel="nofollow">ShareThis</a><br /><div id="custom_wisebread_footer"><div id="rss_tagline">Written by <a href="http://www.wisebread.com/david-ning">David Ning</a> and published on <a href="http://www.wisebread.com/">Wise Bread</a>. Read more <a href="http://www.wisebread.com/taxonomy/term/"> articles from Wise Bread</a>.</div></div> Personal Finance Budgeting Lifestyle emotional decisions emotional spending Joneses Thu, 08 Dec 2011 11:36:15 +0000 David Ning 794968 at http://www.wisebread.com Do You Love Money or Hate It? Either Way, You're Sick. http://www.wisebread.com/do-you-love-money-or-hate-it-either-way-youre-sick <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/do-you-love-money-or-hate-it-either-way-youre-sick" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://www.wisebread.com/files/fruganomics/imagecache/250w/blog-images/cdn%20dollars_0.jpg" alt="money" title="money" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <h2>Do you love money? </h2> <p class="MsoPlainText">Do you love to earn it? Dream of what it can buy? Visit your bank accounts often and watch them grow? Review your investments with eager anticipation, and fancy yourself an amateur trader in your spare time? Do you read countless articles on money making strategies, from businesses to investment and tax-saving tips? Discuss detailed money matters with your family and friends over dinner?</p> <p class="MsoPlainText"> <br />Well, you’re sick. </p> <p class="MsoPlainText">&nbsp;</p> <h2>Do you hate money? </h2> <p class="MsoPlainText">Do you ignore your investments? (Or not have any to begin with)? Bury your head in the sand when the monthly bills roll in? Politely excuse yourself when family or friends start talking about money or careers or taxes? Put off filing your taxes each year? Cringe when you have to go to the ATM, and quickly discard the transaction receipt without looking at the balance?</p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">Well, you’re sick too. </p> <p class="MsoPlainText">&nbsp;</p> <h3><strong> Or maybe not.</strong></h3> <p class="MsoPlainText">&nbsp;</p> <h2> Maybe it’s not bad to love money. </h2> <p class="MsoPlainText">Maybe keeping track of your accounts and investments helps to provide peace of mind for the future, and empowers you to spend within your means now. </p> <p class="MsoPlainText">Maybe knowing what your money can buy and working towards goals helps you stay motivated, and even <a href="/so-what%E2%80%99s-better-a-great-job-with-average-pay-or-a-sucky-job-with-fantastic-pay" target="_blank">tolerate a job</a> you can’t stand, by keeping your eye on the ball. </p> <p class="MsoPlainText">Maybe an awareness of your investment portfolio and trading activity is good in this ever-changing world of economics. </p> <p class="MsoPlainText">And reading articles on business, taxes and money matters just might save you a few bucks or help make a few more, getting you even closer to your financial goals (both short term and long term). </p> <p class="MsoPlainText">And with a family and circle of friends who share the same ideals and attitudes towards money, maybe talking with them about it creates an open and healthy relationship with finances, and gives you a forum for keeping your own finances in check. </p> <p class="MsoPlainText">&nbsp;</p> <h2>Then again, maybe it’s not bad to hate money. </h2> <p class="MsoPlainText">Maybe talking about finances with other people is unsavoury, socially awkward, and unacceptable in your circles. </p> <p class="MsoPlainText">Maybe ignoring an investment portfolio is the best way for it to grow in the long run, since you’re not supposed to actively trade and get sidetracked by short-term fluctuations. They do say “slow and steady wins the race”, after all. </p> <p class="MsoPlainText">Nobody likes bills. So is it really so bad to hate them? They still get paid in the end after all, right? </p> <p class="MsoPlainText">And for heaven’s sake, taxes are highway robbery. Procrastinating on filing in an effort to enjoy the little things in life is not a crime. (Then again, maybe it is)! </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText"><strong>Within both scenarios</strong>, most people would agree that there are some legitimate points. Loving money to the point of obsession is unhealthy, as is hating money to the point of ignoring all financial matters to your own detriment. </p> <p class="MsoPlainText">Luckily, if you are reading this article you probably already chose to be aware of your finances and take control of money matters, either to repair blunders of days gone by, or to take your financial plans to the next level. </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">But do you love money? Really love it? Or is it a necessary evil that rots your socks? </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">Ultimately, is it possible to love some aspects of money and what it can do for you without letting it control your life and turn you into a money-hungry pig? Can you become the <a href="/the-millionaire-next-door-riches-de-mystified" target="_blank">Millionaire Next Door</a> and quietly harness your money to work for you and still maintain friendships with people from all walks of life? </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">Does living in a mansion and driving a fancy car make you unattractive, or attractive? And to whom? Is being the object of envy a good thing? Does it inspire people to create achievable goals for themselves and have something to work towards, or does it further create a rift between the haves and have-nots of the world? </p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">&nbsp;</p> <p class="MsoPlainText">I honestly don’t know the answer to most of these questions. Is it good to love money? Or hate it? Is there an easy middle ground to stand on? It seems that to have an attitude towards money at either end of the love/hate spectrum is considered sick in one way or another. So what are we supposed to do? Love it or hate it? </p> <a href="http://www.wisebread.com/do-you-love-money-or-hate-it-either-way-youre-sick" class="sharethis-link" title="Do You Love Money or Hate It? Either Way, You&#039;re Sick. " rel="nofollow">ShareThis</a><br /><div id="custom_wisebread_footer"><div id="rss_tagline">Written by <a href="http://www.wisebread.com/nora-dunn">Nora Dunn</a> and published on <a href="http://www.wisebread.com/">Wise Bread</a>. Read more <a href="http://www.wisebread.com/taxonomy/term/"> articles from Wise Bread</a>.</div></div> Personal Finance Career and Income emotional decisions procrastination relationship with money Sat, 09 Aug 2008 00:34:09 +0000 Nora Dunn 2306 at http://www.wisebread.com