Ep 3: How Emotions Impact Financial Decision-Making

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.

 

Show notes and additional resources: https://theuswealthadvisors.com/2020/02/ep-3-how-emotions-impact-financial-decision-making/ 

 

Today's rundown: 

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.