Understanding Emotions*
Emotions don’t just feel good or bad; they also contribute crucially to people’s well-being and health. In general, experiencing positive emotions is good for us, whereas experiencing negative emotions is bad for us. While it is generally good to experience more positive emotion and less negative emotion, this distinction is not always the guide to the good life. How we feel adds much of the flavor to life’s highest—and lowest—moments. Can you think of an important moment in your life that didn’t involve strong feelings? In fact, it might be hard to recall any times when you had no feeling at all.
Emotions play a large role in how we spend and save money since money is a symbol of security, success, and love. We are likely to save/hoard money in times of anxiety or uncertainty. At the same time, frustration or stress can cause us to spend impulsively and then feel buyer’s regret. Retailers design marketing strategies that touch our feelings such as sales, limited-time offers, and exclusive deals, to encourage the making of quick decisions.
Understanding your emotional triggers will help you manage your emotions to make better financial decisions. Once you know what your triggers are, you can develop strategies to control those emotions and make more informed choices such as setting spending limits, automating your savings, or seeking expert advice from a financial advisor. (Psychology of money, 2024)
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