Skip to content

Understanding How Your Feelings Impact Your Financial Decisions

Today’s Prep:

When you make a financial decision, does it start with looking at the numbers or asking the question, “How do you feel about that?” When should your feelings overrule the numbers, and what areas of your plan are most likely swayed by feelings and emotions?

(Click the featured times below to jump forward in the episode)

 

Equipping Points:

Let’s talk about our feelings! Believe it or not, financial planning is not always about math and logic. Your feelings come into play, especially in regards to specific topics.

If you have a family home that you’ve lived in for the past few decades, do you downsize once the kids are out of the house? Or do you want to fix it up for when family comes to stay? Do you have land that has been in the family for a few generations? Sometimes the financial figures don’t make as much sense, but you need to ask, “How does it make me feel?”

What does your financial legacy look like and how important is it to you to leave money behind? Do you want to pass money to your children and grandchildren or to charities? With some of these decisions you’ll need to also consider the tax planning accordingly.

Depending on how you feel about your financial advisor, you may want to know every fine detail of the plan. Or, you may just want them to make the plans so you can be more carefree. Then, when it comes to market volatility, you’ll want to understand the true risks instead of just basing your decisions on feelings and knee-jerk reactions to a statement.

Listen to the entire episode or click on the segments below to hear more about a particular topic.

[1:06] – Feelings get tied up in the family home.

[3:36] – Make sure you can age in place and have the proper support around you.

[4:06] – How important is it to you to leave a financial legacy?

[6:25] – Do you want to know the fine details of your financial plan?

[8:41] – How you feel about the market volatility can impact your decisions.

 

Related Resources:

How To Handle Financial Pain Points in Retirement

Tending To Your Retirement Garden

 

Today’s Takeaway:

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: When Should I Take Social Security?

July 2, 2020

Are you wondering how much longer you really have to wait before claiming Social Security? Or are you looking to find the perfect financial advisor but haven’t found them yet? Eric answers three questions from the mailbag in this week’s podcast.

Read More

Financial Lessons Learned from the Farm

June 25, 2020

Whether you are growing some backyard tomatoes or have 100 acres of farmland, what are some financial lessons to be learned? You don’t need a green thumb to understand these financial principles.

Read More

Financial Truth Bombs

June 18, 2020

Need someone to tell it to you straight? On today’s episode, Eric gives four financial truth bombs that might change the way you think about your financial plan and your portfolio.

Read More

Outdated Financial Rules

June 11, 2020

What financial rules are worth following and which ones need an update? On this episode, we discuss several known financial rules to see which ones are dated and which ones stand the test of time.

Read More

How To Mess Up Your Retirement Plans

June 4, 2020

How can you know your retirement plans are what they should be? What thoughts and assumptions can ruin your retirement? One thing’s for sure–you don’t want to mess it up!

Read More

The Customer Ain’t Always Right In Financial Planning

May 28, 2020

When you see a financial advisor, do you want them to always tell you “you’re right” or do you want someone to coach your through your financial plan? Let’s talk about when the customer isn’t always right when it comes to financial planning.

Read More

What To Do With Unexpected Extra Cash & Other Mailbag Questions

May 21, 2020

While many are hitting hard times financially, maybe you are among the few who are doing well and trying to make the most of it like Grace in Ames. Eric gives some advice on what to do with extra cash as well as answering two other questions from the mailbag.

Read More

Coronavirus Update and a Look at Interest Rates

May 14, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

Finding Predictable Income Sources in Retirement

May 7, 2020

When you retire, it’s important to set up several sources of income, particularly predictable income. What are some forms of reliable income and what streams of income are more vulnerable? We’ll explore the options and help you determine if they might work for you.

Read More

What’s The Difference Between These Important Financial Terms?

April 30, 2020

Do you know the difference between a Roth contribution and a Roth conversion? What about individual bonds and bond funds? Eric explains the difference between these important financial terms so you can decide what should be included in your financial plan.

Read More

Leave a Comment