This week on Money & Investing, Mitch Olarenshaw and I discuss the psychology of money, exploring how emotions such as fear and greed influence financial decisions. We share personal experiences and insights on managing these emotions in the world of finance.
1. Fear and Greed in Investing
Fear of losing money and the pursuit of profit are common emotions in investing. Understanding how these affect decisions is key to managing reactions in fluctuating markets.
2. Money Stories from Childhood
Your beliefs about money often stem from childhood experiences. These ‘money stories’ can shape how you handle financial decisions throughout your life.
Social media often creates unrealistic financial comparisons. It’s better to focus on your own progress rather than comparing yourself to others’ curated images of success.
4. The Danger of Overconfidence
Overconfidence, particularly among younger investors, can lead to poor decision making. Staying objective is crucial for long-term success in investing.
5. Objective Financial Planning
Removing emotions from financial decisions and focusing on a structured plan is vital for building long-term wealth.
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The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.