The Ten Commandments of Finance: Commandment VI Don’t Discount Emotions

June 2, 2011 § Leave a comment

6.)  Don’t discount emotions

 We already talked about money and happiness but there is also the quirky stuff about money. 

 We are ourselves and that means we are all different. Our natures may make us born savers or spenders.

 Then there are emotions and how we choose to handle stress or celebratory joy. Some of us let emotions control us as we are not naturally reflective. Examples might be hoarding when are fearful or spending money when we’re angry, Some people give everything away when they feel exuberant. 

 Perhaps spending isn’t the problem. Maybe you are intolerant if your judgment or explanation are questioned; maybe you go crazy if you can’t manage the finances a certain way.

 Is your quirkiness adorable or is it causing terrible trouble? What are you doing, chickie? What’s behind that overreaction…? What are you really trying to control?

 Are you spending money because you are totally living in denial and don’t care that you haven’t got the money. Are you entitled and believe that you ‘work hard and deserve’ this trip, this couch, this outfit?

 Are you shopping to feel loved or to get your endorphins going? You probably know about the endorphins, the studies that have been done that show how shopping effects the brains of some people giving them a sense of happiness?

 Sit yourself down and face the reality that is your present life. If there have been disappointments, crushing despair, love lost, this is all temporary. Tomorrow will be a much brighter day, especially if you take control of your finances and don’t add to the problem with out-of-control emotions or spending.

 And if it’s any help keep this easy-to-remember tidbit in mind:

Future Value of MONEY– Just add a zero- When you are thinking of buying an item, perhaps one you are trying to talk yourself out of, wouldn’t it be great to know how much you might have saved if you had socked that money away and saved it? What might that money be worth 30 years from now at earning 8% interest? Just add a zero to the cost of the item!

 So, you want a new computer and it’ll be $1200. You don’t really need the computer but you have the money…According to this money estimate, If you saved that $1200 for 30 years and earned 8% you’d have $12,000.

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