99% Of All Bad Money Decisions Are Based On Two Things

The yin and yang of emotional spending

We all do it.

Bad money decisions, like most other bad decisions, are most often made because of human emotion. While sometimes bad information or another person’s activity can cause us to be misled and make poor decisions, there’s no question that allowing our emotions to rule our wallets is much more often the cause which drives so many of us to make horrible financial choices. But it’s not like there’s a broad spectrum of emotions at play in our money decisions. In fact, if you really boil it down, that emotion you feel when you’re about to make a terrible decision with your money is most likely either greed or fear. That’s it.

Fear causes you to hide your money in the mattress, afraid to be broke.

Greed causes you to invest in the Next Hot Thing without even knowing what it is, or what it does, also causing you to be broke when it doesn’t pan out.

Fear causes you to lie awake at night, sick with worry about bills, and expenses.

Greed causes you to lie awake at night, sick with envy at other peoples’ cars, and houses, and vacations.

Fear causes you to deny yourself experiences, luxuries and happiness because you worry you’ll…