Social

Tag Archives | money and emotions

Fewer Americans Living in Poverty

Fewer people in the US are living in poverty. According to the October 2017 annual report of the Hamilton Project of the Brookings Institute, the number of Americans living in poverty declined by 13%, or 6 million people, in the two years from 2014 to 2016. That’s encouraging news. Not so encouraging is that 40.6 […]

Continue Reading

Money, Emotions, and the Nobel Prize in Economics

Human beings make most of our decisions—including financial ones—emotionally, not logically. Unfortunately, too much of the time, our emotions lead us into financial choices that aren’t good for our financial well-being. Yet many of the economic models and theories related to investing are based on assumptions that, when it comes to money, people act rationally […]

Continue Reading

Managing Money Envy

Do you think there’s nothing emotional about money? If so, I dare you to stand up in a town hall meeting anywhere in the US and ask, “What’s wrong with income inequality?” There is a high probability that the responses that follow may have some emotion. Make no mistake, money is highly emotional. Consider, for […]

Continue Reading

The Emotional Aspect of Sound Money Decisions

Making sound money decisions is fundamental to financial and emotional wellness. One component of that decision-making is applying logic and rationality to a set of known facts. For example, perhaps I read several articles on financial health. One says that living on less than I make is fundamental, another recommends saving at least 20% of […]

Continue Reading

Feelings Are Normal, But Not Reliable Investment Guides

The first week of January 2016 I talked with a retired man in need of some retirement planning. He had a portfolio of about $1,000,000 invested in money market and certificates of deposit. His Social Security income was about $25,000 and his lifestyle spending was around $60,000, meaning he needed to withdraw about 3.5% annually […]

Continue Reading