The Emotions of Money
Sarika is in her late 30s. Single and with no plans to marry.
She says she is clueless about money.
She does not know how to invest it. She finds the financial markets confusing. She does not trust her banker, broker, or chartered accountant. They sell her products that make money for them and not for her.
She feels her finances are out of control. She sometimes feels a sense of panic wondering if she has enough for her old age. At other times she feels she is missing out by not being in the right investment — like when the stock markets are going up. And she feels envious when colleagues boast about how much money they made on that IPO.
Stressed. Uncomfortable. Overwhelmed. Ashamed. Illiterate-about-money. Embarrassed. Afraid. Intimidated. Nervous. Anxious. Guilty. Panicky. Out-of-control. Tense. Envious.
Do you feel some of these emotions? If you do, you are not alone.
I worry about my money. I have tried to be more rational and less emotional. But that does not work. We are fundamentally emotional beings.
What we all need is a trusted advisor.
Even though I help people manage their money, I often seek advice from my colleague.
Just as I am blind to the faults in my children, I can’t see the irrationality in my investments.
My advisor’s role is not to stop me from doing irrational things. The job is to help me make good choices. And even if I do decide to make bad choices, to help me anticipate the possible consequences.
At the end of the day, we all have the absolute right to be emotional about our money.