Let’s face it, we’re emotional beings (thankfully). We laugh at comedy and cry at tragedy. We give money more easily to beggars on cold and rainy days, or to mothers with young children than to single men on the side of the road. We buy things on sale (with money we don’t have) even though we don’t need them and yet we dump our investments when the markets go on sale.
We buy high and sell low and not the other way around. We resist drafting our wills for fear that it increases the reality of our deaths. We fool ourselves into believing that over indebtedness is for poor people and that our debt is just a temporary phase – one day we’ll win the lotto. Things are going to get better. We promise ourselves that we’ll get around to saving and when we do, we throw money at last year’s winners.
There’s a great scene in the movie, “A few good men” where Jack Nicolson’s character blurts out the famous line in response to the questioning attorney “The truth, you want the truth? You can’t handle the truth!”
The truth about human beings is that we’re emotional beings. And this is especially true when it comes to our money.