Your State of Mind Can Affect Your Decisions About Money
How people spend and save their money is intensely related to an individual’s state of mind. People who are anxious or depressed may not be in the best position to make optimal financial choices. Monetary decisions are best made when all of the options have been carefully considered. That being said, behavioral health does affect how a person approaches financial decision making. After receiving depressing news, who hasn’t thought of going on a shopping spree, because it’ll make you feel better? Spending money can be fun—even uplifting—but it may not be the best choice at that time.
At Isakov Planning Group, we believe that financial decisions are 80% affected by a person’s behavior and only 20% affected by common sense! That means if you’re nervous or anxious about your financial situation, you may not make the best financial decisions.
Let’s consider another common, distressing situation: a divorce. A divorce can play havoc with your behavioral health. Clouded by several heightened emotions during this stressful period, few people could claim that only common sense guides their monetary policy. Yet, at this time, you may be making economic decisions with far-reaching, long-term consequences.
If you’re depressed, you may feel it’s not worth the effort to carefully manage your finances. A depressed state of mind can rob you of the motivation to do the smart things that you’ve always done.
At Isakov Planning Group, we know how a person’s behavioral health can affect their financial health. We can help you understand how your state of mind can influence the desire to make a large, unneeded purchase. Our job is to ensure that money is used in the most appropriate way for each individual client. Contact us today to arrange a free, initial consultation.