Your Money: How are you feeling about money? (no, really.)

Bruce Helmer and Peg Webb Money isn t only a matter of arithmetic It is deeply tied to how we feel about our lives and our futures Even investors who pride themselves on rational decisions know that fear excitement or uncertainty can often enter the picture Current surveys reflect this unease The University of Michigan s Index of Consumer Sentiment fell to in August signaling growing concern about inflation and economic stability At the same time Americans now say it takes to feel financially secure a sharp increase from last year according to Charles Schwab s bulk fresh Modern Wealth Survey These benchmarks tell us less about balance sheets and more about psychology Comfort is harder to grasp even as asset values and income rise Why our emotions shape financial outcomes Behavioral finance has shown for decades that the greatest pitfall to long-term success is often our own behavior Markets fluctuate but it s the way we react selling in panic chasing performance or freezing up that undermines progress Specific of the majority common patterns include Loss aversion Losses weigh roughly twice as heavily as gains making it painful to hold steady in a downturn Tversky and Kahneman Mental accounting We treat identical dollars differently depending on the bucket they are in a bonus say or a refund or savings which can lead to inconsistent decisions Status quo bias We stick with outdated allocations or policies only because change feels riskier than inertia Present bias Immediate gratification often outweighs long-term goals creating a constant tension between saving and spending Mood effects Stress or overconfidence distorts pitfall perception and influences decisions far more than spreadsheets Moving from academic theory to action There is a way to frame the challenge of managing these biases in personal terms every financial decision has a feeling attached to it Before acting it helps to name the driver Is it fear pride or the desire to keep up Identifying emotion makes it easier to separate genuine requirements from less-essential wishes We reliably encourage our clients to broaden their definition of wealth Assets on a message matter but so do time physical condition skills and relationships Money should be viewed as a tool to protect and expand those forms of wealth Relationships add another layer of complexity Disagreements between spouses awkward conversations with friends or mismatched expectations with a new partner can all magnify financial stress Honest communication can reduce emotional charge and make planning feel collaborative rather than confrontational Setting guardrails can help quiet your emotions Awareness alone is not enough Putting structures in place keeps emotions from steering decisions off syllabus A meager that work in practice Pause before acting A -hour delay on emotional money moves often prevents regrettable choices Automate the essential Automatic savings debt payments and portfolio rebalancing reduce the influence of mood swings Label your goals Rename vague buckets into specific purposes e g a five-year house fund or sleep-at-night cash Labels bring clarity which can make trade-offs easier Audit your defaults Replace one outdated choice whether it is a k allocation that has moved from your ideal target or an unused subscription with something more intentional Convert anxiety into action When stress builds channel it into one tangible step raise contributions rebalance or schedule a review Taking action can restore a sense of control Wealth beyond the numbers Despite the headlines largest part Americans already overview feeling wealthy in the areas that matter greater part Eight in say they feel rich in relationships happiness and time according to the Schwab research This suggests that while money fuels opportunity it is not the sole measure of a well-lived life Financial wellbeing then is not about reaching a fixed number It is about aligning money with values setting boundaries against emotional impulses and remembering that true wealth extends beyond what markets deliver Emotions and money may appear to be inseparable Emotions can cloud judgment or serve as useful signals depending on how we respond By naming the feelings behind financial choices setting up guardrails against impulsive behavior and broadening our sense of what it means to be wealthy we can quiet certain of the anxiety and focus on building lives that are not just financially secure but genuinely fulfilling Related Articles Your Money techniques the new tax bill could impact your wallet Your Money Managing cashflow is like planning a summer vacation Your Money Exit a business or equity position without regret Your Money What to do with a financial windfall Your Money The pursuit of happiness The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of Your Money on WCCO AM on Sunday mornings Email Bruce and Peg at yourmoney wealthenhancement com Advisory services offered through Wealth Enhancement Advisory Services LLC a registered commitment adviser and affiliate of Wealth Enhancement Group