How To Account For Emotions In Your Financial Plan

Most people like to think that they always make decisions based on logic and facts, but the truth is that emotions usually play a role for all of us in the decision-making process. Matt will share examples he has seen where emotions have influenced the thought process of individuals. Understanding the emotions that come from financial planning and putting the right strategies in place leads to making the best decisions. 

 Show Notes:

 

1:26- Peoples concerns are often times driven by emotion. Matt will break down the good and bad behind emotions in financial planning. 

3:34- Matt explains the different types of emotions people have when dealing with money. 

4:53- The emotion of fear is always around us. It is key to be cautious of fear and not let it take hold how we make decisions. 

8:54- Greed is an important emotion to identify and ensure it is not negatively affecting your financial planning. 

12:00- Loyalty to companies and family is an emotion Matt encounters that can has led people to make poor decisions. 

16:38- Matt states the importance of understanding your emotion and using logic to come to answers.

17:00- Strategically making decisions, knowing all the options and potential risks leads to the best approach to financial planning.