Quiz 34
Do My Emotions Rule My Money?
Many otherwise reasonable and competent people are frightened, seduced, awed, infuriated, or just plain confused by money. This is often because people’s reactions to money are based on more personal issues, such as lack of self-worth, than they are on facts and figures. Money is—no pun intended—a very charged matter. But when emotions rule your money, the bottom line suffers.
Do your emotions rule your financial life?
Take the Test
Imagine yourself in the following circumstances and select which of the listed reactions you’d be most likely to have:
1. You’ve just had a disappointment in love or work and feel sorry for yourself. A friend suggests “retail therapy.” You …
a. Eagerly head off on a shopping spree, buying things on credit that you cannot really afford.
b. Are way ahead of your friend, having already begun an online shopping binge.
c. Thank your friend, but suggest another activity the two of you can do together to cheer you up.
2. Your in-laws—who have made it clear they wish you were more financially successful—are coming to a holiday dinner at your house. When you are at their house, they spare no expense on gourmet food and wine. Now you …
a. Do your best to put out a nice spread without breaking the bank.
b. Pull out all the stops, calling in a fancy caterer.
c. Serve a meager meal just for spite.
3. The stock market is dropping fast. You have money in the market in a retirement fund, but you are decades away from retirement. You …
a. Sell all your stocks.
b. Do nothing.
c. Take the time to review your portfolio, with an eye toward staying diverse and perhaps discovering good buying opportunities.
4. A friend who makes a lot more money than you do invites you to an expensive restaurant and picks up the check. You …
a. Say “thank you.”
b. Say “thank you” and make plans to invite him over for a nice home-cooked meal.
c. Feel insulted and vow to treat him to an even more expensive restaurant.
5. Your credit card company raises your credit limit without your asking them to. You …
a. Feel like you just won the lottery and go out to purchase a splurge item.
b. Ignore it.
c. Call them and ask them to put it back where it was because you don’t want to be tempted to overspend.
6. The price of gasoline is going up, and you fear it will continue to be a long-term strain on your budget. You …
a. Weigh the pros and cons of investing in a more fuel-efficient car.
b. Investigate car-pooling options.
c. Drive miles farther to buy gas that is only pennies cheaper (it’s the principle of the thing!).
7. You get a cold call from someone who identifies himself as an investment advisor, and says he can double your money in a month. You …
a. Send him some money.
b. Hang up.
c. Ask him to send you a detailed prospectus.
8. Your car insurance company raises your rates substantially for what you think is an unfair reason. You …
a. Shop around for another car insurance company.
b. Call them and try to negotiate.
c. Get furious, refuse to pay the bill, and let your insurance lapse.
9. Your rich uncle dies and does not leave you the small fortune you hoped he would. You …
a. Feel disappointed, and then get on with your life.
b. Vow to spend as much time and money as it takes to sue the estate.
c. Spend a great deal of money on a new car, saying, “Living well is the best revenge.”
10. Your spouse or partner says you are spending too much money, and shows you that indeed you are running up household debt. You …
a. Figure out ways to hide your personal expenditures from your mate.
b. Figure out together how you can cut expenses.
c. Accuse your mate of being a tightwad.
Scoring and Explanation
Match your responses to those noted below. Count up the matches:
1. C. If you picked A or B, you are using money as a temporary feel-good drug.
2. A. If you answered B or C, you are using money to express feelings of low self-worth and resentment.
3. Either B or C is a reasonable choice. If you answered A, you are letting fear rule you.
4. Either A or B is a reasonable choice. If you answered C, you are letting pride rule you.
5. Either B or C is a reasonable choice. If you’re not capable of resisting temptation, you can try to eliminate it. If you picked A, you are in denial about the risks of credit.
6. Either A or B is a reasonable choice. If you picked C, you are letting anger rule you.
7. Either B or C is a reasonable choice. If you picked A, you are letting greed rule you and you are prey to pie-in-the-sky thinking. Remember, things that seem too good to be true generally are.
8. Either A or B is a reasonable choice. If you answered C, you are letting indignation lead to your self-defeating behavior.
9. A. If you answered B or C, you are being ruled by false hopes and disappointment.
10. B. If you answered A or C, you are entangling relationship issues with money issues.
• A total of 9 or 10 matches indicates that you have a rational relationship with money. You tend to make decisions based on factual evidence and logic, regardless of how you feel.
• A total of 7 or 8 matches indicates that you have an on-again off-again rational relationship with money. Use the answer key to note the particular emotions that are getting in the way of logical decisions, and try to find other ways of dealing with these emotions so that they are not financially destructive.
• A total of 6 or fewer matches suggests you let your emotional life rule your financial life. This tendency can be extremely costly. Do all you can to be aware of separating your feelings from your finances. Try not to make any financial decisions on a whim, or you risk giving in to your worst impulses. Sleep on everything, and seek solid professional advice when you can.
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