Today, we are going to examine how to separate your emotions from money so you can be more objective in your money decisions. To do this, the first step is to identify which emotions you are most susceptible to and the money situations that trigger these emotions.
Every time you let your emotions hijack your money making decision, you will feel a mixture of exhilaration, guilt, and regret.
When people have low Financial IQ, and as a result begin to suffer consequences such as chronic debt, loss of investment in a Ponzi scheme, or extreme poverty, they tend to develop deep feelings about money.
Welcome to the new Financial Intelligence series on Money and your Emotions. This is a topic that concerns everyone that ever has anything to do with money. At one time or the other, you may have made a financial decision out of emotion rather than reason.
The only way you can master the game of money and graduate from being an amateur into a professional is by increasing your Financial Intelligence and mastering the game called money.
Find it out from the book, "HOW TO SAVE LIKE A PRO: 30 Radical Money Saving Hacks That Can Help You Hit Your Financial Goals" by Obot Essiet Jr., the Financial Intelligence (FINTEL) Coach.
Good Debt is the type that allows you to accumulate assets that will increase in value either by capital gains it by generating CashFlow. You can use the income derived from the asset to repay the debt.
From the personal finance and investment perspective, there are four classes of assets that you need to have available to build an investment portfolio.
An asset is any form in which wealth can be stored and held - long lasting item of property that can be reasonably expected to contribute to the future profits of a business.
From the last series, you now know how high inflation creates uncertainty and can wipe away the value of money savings. But I also mentioned that while inflation is a…