The Impact of Emotions on Financial Decisions

Matt LaRocca |

Investors are often faced with emotions caused by swings in the stock market, as exemplified by this year's heightened market volatility. However, emotions can also come into play when dealing with personal financial decisions at home, such as how much to spend when we shop, savings contributions, charitable contributions and the like. While we often talk to clients about controlling emotions when it comes to making investment decisions during times of market volatility, it is similarly important to control ones emotions when making financial decisions outside of the markets.

The article below from Market Watch reviews how emotions like anger, fear and guilt come into play in personal money decisions:

Market Watch Article: How Emotions Affect Money Habits