90% of financial decisions are based on emotion – Here’s how to find a balance

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90% of financial decisions are based on emotion – Here’s how to find a balance
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Money, or the lack of it, can take a real toll on our self-esteem. That’s where a supportive circle can help lift us when things get tough.

Most of our behaviour is driven by emotions, like our relationships with people and things.“Whether it be complex emotions like remorse, greed, depression or more basic ones like fear, sadness and joy, our emotions play a monumental role in our spending habits.”Psychologist Dr Khosi Jiyani said people need to find a balance because it is impossible to separate emotions from spending.

Talking to them is an important outlet for sharing your emotions and reducing the burden of financial anxiety. “Money evokes strong emotions because we all need it to live; without it, part of our identity as a provider is taken away. However, there are specific ways that can help buffer the financial impact. “Unlike other forms of loss, financial loss garners much less sympathy.”

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