5 Ways Emotion Can Wreck Your Finances
NEW YORK (TheStreet) -- Given the dizzying number of factors that govern consumer financial issues, it's no wonder many Americans rely too much on emotion when making critical money decisions. But emotion is one of the worst tools to bring to the personal-finance table.
That's a reminder from Take Charge America, a Phoenix, Ariz., nonprofit credit counseling provider.
"Many intelligent, capable people have found themselves buried in debt as a result of excessive spending and other poor financial habits," says Michael Sullivan, chief education officer at the agency. "The first step toward improving your finances is simply to recognize when your emotions are influencing your decisions."
Take Charge America says consumers should look for "warning signs" that emotions are playing too big a role in everyday financial decisions.college savings account on a regular basis.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV