EQ versus IQ

 

Emotions versus Intelligence

 

How do your emotions measure up when you manage your money?

 

There is scientific proof that, when people make financial decisions they favor emotions over mathematical precision, by 75% and in some extreme cases by 95%.

In other words, financial success depends more on your ability to understand and control your emotions than the ability to add and subtract numbers.

 

So when you build a spending plan (or a budget as we used to call it) and you fail, it may not be the math, but some emotions steering you in another direction.

 

My money whisper for today is:

Recognize your emotions when you work with your money numbers.

 

August 2010

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