Emotions that disrupt your personal finance

07 Jul, 2019 - 00:07 0 Views

The Sunday Mail

There are various studies carried out internationally which shows that we react more strongly on negative emotions than on positive emotions.

In fact, when it comes to money, the biggest barrier in achieving financial freedom is negative emotions. Following are some of the emotions which may disrupt your personal finance.


When it comes to financial planning people ignore its importance and try to delay actions which leads to various issues.

People procrastinate financial planning not just because of time constraints but also due to laziness in completing all the necessary paperwork needed to plan their finances.

The solution to this is to hire a professional financial planner, who will make your work easy and properly guide you towards achieving the desired financial goals.


This is the most common emotion when it comes to money.

People are emotionally attached to money and they are more fearful of losing money than losing life.

The solution for this is to get the financial plan done from a professional and a certified financial planner.

Having a financial plan would help you to understand the tenure for which you are investing and would also cover saving needed for emergency situations, life risk and health risk.

Even once invested it is important not to check on the investment portfolio on a daily basis as it won’t give you the right insight.

Monitor your portfolio quarterly and review it annually.


This is one of the most common emotion found in humans. Being overconfident is harmful from a personal finance point of view.

Without giving a second thought, some people go on increasing the proportion of your investment in equity by thinking that they would continue to gain as they gained yesterday, this can surely lead to a massive disaster.

It is better to have a holistic view and try to be confident about your investment portfolio and but not overconfident.

The solution for this can be to have a financial plan in place and stick to it.

Understand and follow the instructions given by a professional financial adviser. Dalal Street Investment Journal.

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