Emotions often drive financial choices from "summary" of PSYCHOLOGY OF MONEY. by MORGAN. HOUSEL
When it comes to making financial decisions, emotions play a significant role. People are not always rational when it comes to money; in fact, they are often influenced by their emotions more than they realize. Emotions can cloud judgment and lead individuals to make choices that may not be in their best interest in the long run. One key emotion that drives financial decisions is fear. Fear of losing money can cause people to make hasty decisions, like selling stocks during a market downturn or hoarding cash instead of investing it. This fear can prevent individuals from taking calculated risks that could potentially lead to greater financial gains. Another powerful emotion that impacts financial choices is greed. The desire for more money or the fear of missing o...
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