Understanding emotions is key to making smart financial decisions for a worry-free retirement

From Yahoo Finance: 2025-05-18 10:00:00

Mary Clements Evans, a certified financial planner, emphasizes financial therapy in her work to help clients navigate money and emotions. In her book, “Emotionally Invested: Outsmart Your Anxiety for Fearless Retirement Planning,” she addresses fear, anxiety, and guilt around money decisions. Understanding our “money why” is crucial for making smart financial choices. Money decisions are often driven by FOMO (fear of missing out) or FORO (fear of running out). FOMO focuses on immediate gratification, while FORO is concerned about future security.

Evans discusses the emotional aspect of financial decisions, emphasizing that people make emotional choices first and justify them with facts. She highlights the importance of saving for survival in retirement, as lifespans have increased. Finding a qualified financial advisor is crucial, as there are no industry standards for titles like financial planner or advisor. Evans aims to remove shame and blame around finance, empowering individuals to make smarter decisions for a worry-free retirement.

Understanding our relationship with money is essential for financial well-being. Money decisions are often driven by emotions, influencing our financial choices. Finding a qualified financial advisor and saving for survival in retirement are key to financial security. Removing shame and blame around finances can lead to empowered decision-making for a secure future.



Read more at Yahoo Finance: Making money decisions comes easier when you understand your emotions, author says