The emotional investor

The messy emotions behind money

Say you’re a shopaholic who has racked up credit card debt, which is forcing you to skimp on essentials. Or maybe you took a pay cut in a new job but are accustomed to certain luxuries you can no longer afford but keep buying anyway. While financial planning may have been the traditional way to deal with these budget troubles, today many people are seeking help from financial coaches, who help clients budget their finances but also delve into the messy emotions behind money. Victor Ricciardi, a finance professor at Goucher College in Baltimore, said traditional finance was based on rationality, not emotions. ….[READ]