Tag Archives: finances


16096239579_66a8d2cb6e_oDespite my recent post all about how emotions can have a detrimental effect on our finances, and what to do about it, I sill gave in to my emotions yesterday.

Everything about yesterday went bad from the very beginning. I overslept my alarm and was rushed to get to work on time. I ended up being about 10 minutes late, and from there the day only got worse. I had several stressful phone calls and situations to deal with for everything from my part-time job to an organization I volunteer for, and more. In fact, I ended up having to use some of my paid vacation time from my full-time job to deal with these situations. Talk about wasting my precious vacation time!

By the end of my full-time job's workday at 5 p.m., I was ready to burst from all the emotions of the day. I was craving comfort food, and for me that means a massive chocolate and sugar-filled snack. So on the way to my evening haircut appointment, I tried two of my local bakeries, which were both closed (it should have been a sign!), before finally I gave in to my emotional temptation and splurged on a chocolate doughnut and soda at the convenience store next to the salon.

The entire time I was eating, ok I was scarfing, my snack, I knew I had made not only a financial mistake, but also a health mistake too. This deliciously unhealthy snack did make me feel better for a minute or two, but then it made me feel worse because it doesn't correlate with my financial goals or  my health related goals.

Of course this small splurge isn't a budget busting purchase, it was only about $2, and it probably won't be the straw that breaks the camel's back for my health either, but it still wasn't a smart decision.

After some thought, I decided that I need to be more aware of how I treat emotional decisions like this in the future so I don't nickel and dime, or soda and doughnut, my way into a financial rut or a health rut. My goals are more important to me than my $2 snack that will only satisfy my craving for a few minutes before my brain is back to thinking about the crap-shoot of a day I just had.

Crappy days happen to everyone at some point, and it's probably okay to splurge on a temptation like this once in a while when your emotions kick in. But if this is something I turn to each time I have a rough day, then I need to find a more constructive way to work off the emotions of my crappy day.

While brainstorming, I came up with these ideas for the future:

  • Go Workout! Working out releases endorphins. Endorphins make you happy, and happy people just don't shoot their husbands. (Bonus points if you just got the reference!)
  • Spend Time Outside. If the weather is nice, spend a little time outside enjoying it to get some fresh air and take your mind off the events of your day.
  • Play With Pets. I have plenty of furry companions around me, I should use them for what they do best, comforting their owner.

How do you deal with a crappy day? Do you let your emotions get the best of you?

Photo courtesy of: Live Life Happy


5541116040_ac4801ea9e_zMoney makes people crazy. No, that's not just a catchy phrase, it's actually true. Research has shown that our finances are more than just a numbers game. There are actually a number of things that can have a huge impact on how successful you are at reaching your financial goals, including your emotions.

Emotions have an effect on everything in our lives, and our finances are no different. It is always more difficult to make the right financial decision when your emotions are running high and you are tired, stressed out, or angry. But even positive emotions like joy can have a negative impact on your financial willpower. We tend to forget about how large an impact emotions can have on our finances, but today we'll talk about 7 different emotions and how they might be sabotaging your finances.


Having anxiety when it comes to money is a huge self-sabotage. People who are anxious about money are typically worried they'll make the wrong financial decisions, like getting back into debt or taking a huge financial risk. But in all actuality, avoiding all risk isn't the best solution to help you build wealth. To maximize your wealth-building power you have to take some financial risks from time to time. The key is to be in control of your emotions rather than letting them control you and your decisions.

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financial literacyIf you have grandparents or your parents are getting close to their 80s, it may be time to get them some help with their finances, no matter how much financial literacy they think they have.

A recent study by the Center for Retirement Research at Boston College found that elderly people in their 80s have declining cognition on financial decision making, though the declines in financial literacy "have little effect on an elderly individual's confidence in their financial knowledge, and essentially no effect on their confidence in managing their finances."

In other words, their financial decision-making abilities are declining in old age, but they're still confident they can handle them.

That overconfidence, as anyone with a stubborn grandparent may know, can cause them to mismanage their finances and be easily lured into financial schemes by crooks. They may think their financial literacy is high, but old age takes some of it away.

Many not getting financial help

The good news is that the study found that people with declining cognition were more likely to get help with their finances. However, it found that more than half of elderly individuals with significant declines in cognition get no help outside of a spouse.

With more retirees depending on 401(k)s and IRAs, instead of defined benefit pensions, cognitive decline could hurt the elderly more, according to the study.

It can be a scary thing to slowly lose the ability to understand financial literacy in old age. But remaining over confident to manage your finances while losing the ability to do so can be a scarier thought.