We all have some sort of history that has shaped the way we relate to money, and those feelings can influence many of the financial decisions we make, both both big and small. Human nature plays a big role, too.
So on Tuesday, the Your Money team, in collaboration with American Public Media’s “Marketplace Money” radio program, published a special section with several articles that illustrate where money and emotions collide.
One article discusses how scary markets often cause us to do crazy things — like throwing away our well-designed, rational financial plans and buying or selling at the worst possible moments.
Another article talks about how adhering to your dream — to open a cupcake shop or become an artist, for instance — could end in disaster. And it discusses why human nature makes it so hard to turn our backs on those dashed dreams — even when it’s abundantly clear we should probably walk away.
There’s also an article about how it’s tricky to sort out our emotions from economics when purchasing long-term care insurance, while another article looks at the type of people who choose to give away their big inheritances.
Other articles raise difficult questions: Do I truly believe I will live long enough to spend my retirement money? What am I prepared to spend on a suffering pet, and should I? Will I insult my fiancé if I question him about his savings or his debts? Should I help my adult children — and will I put myself at financial risk if I do?
We hope you will share some of your own experiences related to these articles in the comment section below.
Article source: http://bucks.blogs.nytimes.com/2013/03/26/when-money-and-emotions-collide/?partner=rss&emc=rss
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