The Psychology of Money: How Your Emotions Affect Financial Decisions

Ever made a purchase you regretted the second you got home? Or watched your portfolio dip by a smidge and suddenly thought, “Time to sell everything and start fresh on a llama farm”? If so, welcome to the roller coaster of emotions that comes with managing money. When it comes to finances, our brains can get as tangled as our earbuds in a gym bag.

So, let’s talk about how our feelings sometimes run the show—and what we can do to get them under control.

The Role of Emotions: Fear, Guilt, and Envy