Emotional situations can cause you to make bad financial decisions.
Here are eight emotions that can cause you to make bad financial moves and how to take control.
This post originally appeared onLearnVest.
was more beaten-up messenger bag and Abercrombie & Fitch hoodie.
I would have killed for a Louis Vuitton bag.
So during my junior year abroad in France, I did something dumb.
But, instead, I opted for a bag the size of my circa-2003 cellphone.
I remember walking out of the shop feeling a mix of exhilaration, guilt, and regret.
But financial experts assure me I’m in good company.
As it turns out, negative emotions influence our fiscal behavior more frequentlyand more deeplythan we may suspect.
Ready toconfront these bad feelingshead-on, uncovering their roots?
Or perhaps you recentlyemerged from debtand you’re freaked out that you’ll fall back into unhealthy spending habits.
Whatever your story, anxiety about money is pervasiveand can affect your finances big time.
But there’s a catch.
If you’re going to allow yourself to mope, you also have to commit to more productive thinking.
Concerned about losing money if the market crashes?
Talk to a financial planner about whether the pros of taking a more aggressive position outweigh the potential risks.
Okay, and maybe a bit jealous, too.
According to Lauber, it’s a perfectly normal reaction.
“Humans are social creatures in a constant state of comparison,” she says.
“Think: What is missing in your life that you don’t have?”
Is it a fancy vacation?
Another simple strategy: Start a gratitude journal.
“Jealousy makes us feel insecure and inadequate,” Lauber says.
Soon enough, it’ll be second nature to focus on the good stuff in life.
Ten percent of Americans say their biggest regret is finance-related, according to a 2012Northwestern University study.
How to Reframe It:Channel your regret into a learning opportunity.
A separatestudyby Roese found that learning from mistakes is one of the most meaningful ways to grow.
How to Reframe It:When you’re with someone you know well, it pays to be honest.
A good friend will understand where you’re coming fromand encourage you not to overspend.
At the same time, it’s important to find a more appropriate outlet for your feelings.
Money-Sabotaging Emotion #6: Guilt
You hit the jackpot!
Maybe you sold your home for twice the amount you paid for it, or invested early in Twitter.
“Spending relieves the guilt temporarily,” Baker says.
How to Reframe It:Having a financial plan for your money can be absolutely essential.
Even if you’re well-off, spending limits can help you focus.
“Without some kind of structure, people tend to wander and squander,” Lauber says.
A healthier way to deal with your guilt?
“Consider channeling some of your resources charitably,” Lauber suggests.
Sell stock with large capital gains and gift the appreciated stock to a nonprofit.
Include charities in your will, or name them as beneficiaries for your retirement accounts.
And many of these strategies happen to be tax-efficient, as well!
It’s one of the most common feelings that stops people from taking action.
“Getting your body moving can unlock a ‘stuck’ mindset,” Baker says.
“Plus, the endorphin rush gives you a more positive perspective.”
Things will turn out fine in the end!
“So don’t deflate your hopefulnessjust pepper it with a little bit of reality,” Lauber says.
“Confront the numbers, one at a time.”
Do you have enough for retirement?
Pull up a retirement calculator online and do the math.
How is your credit report?
Download a copy of yours.
Once you know where you really stand, you could get your logical side involved in fixing things.
Optimism and clear-headedness can add up to a money dream team.
Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice.
c’mon consult a financial adviser, attorney or tax specialist for advice specific to your financial situation.
Image adapted fromphipatbig(Shutterstock),Nemo(Pixabay),PerpetualStudios(DeviantArt).
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