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CD (Certificate of Deposit) RatesEmotions play a big role in how we spend our money.
Way too big, according to a new book by psychiatrist David Kreuger.
We use money to “alter our moods, increase our self-esteem, and control others,” Kreuger says. “We use money to try to soothe emotional pains and to buy the respect of others and ourselves.”
But, as your mom (not to mention the Beatles) always told you, money can’t buy you love.
Recognizing and overcoming that destructive behavior is what The Secret Language of Money: How to Make Smarter Financial Decisions and Live a Richer Life (McGraw-Hill, $25.95) is all about.
This makes Secret Language the right book for right now: An easy-to-understand financial guide for all of those Americans trying to restore some balance in their lives after pigging-out out on easy credit.
In Krueger’s view, millions of consumers unconsciously try to spend their way to happiness.
When we allow emotions like that to rule our financial lives, we wind up spending more than we make, falling for every scam and speculative bubble that comes along, and plunging into debt.
(For a great example of how this can happen, see our post “Real Trouble For Bravo’s ‘Real Housewives.’”)
He takes money emotions down to the biological level, not necessarily to show us that our brains are to blame (he doesn’t let you blame anyone for your actions except yourself), but how to overcome gut reactions to make sound financial decisions.
The book isn’t perfect, but you can’t argue with its core message.
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