Invest With Your Head, Not Your Heart - TheStreet

Invest With Your Head, Not Your Heart

Emotions can lead to overspending -- and 29% say they overspend due to stress, 22% say it's because of excitement and 13% say it's retail therapy to cope with sadness.
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Emotion and money seldom make great bedfellows. According to the folks at finance site NerdWallet, 49% of Americans say emotions have caused them to spend more than they can afford. That wears off a bit with age -- 67% of Millennials (age 18 to 34) say they get emotional and overspend, vs. 29% of Baby Boomers over 65 -- but everybody can make terrible emotional decisions with money.

Of those who let emotions dictate their overspending, 29% say they overspend due to stress, 22% say it's because of excitement and 13% say it's retail therapy to cope with sadness. Though 86% think there are acceptable reasons to go into credit card debt, roughly that many (87%) would be embarrassed to do so.

In fact, most Americans say they would feel terrible if they went into debt for any reason beyond covering emergency purchases (63%), medical expenses (61%) and covering necessary expenses during periods of unemployment (45%).

This article was written by a staff member of TheStreet.