Debt is a crippling disease experienced by millions of people worldwide. A lot of people would reason out that job inequality, inflation, slow wage growth, and, in general, disadvantageous government policies are causing them to accrue huge sums of debt. While these political factors do have an ostensible degree of impact towards your personal finances, emotions play an equally important role. Human beings, as a species, has always been distinguished by their spectrum of emotions – happiness, excitement, anger, despair, and so on. So, is there a connection between debt and emotions? Here are some things to consider.


You don’t necessarily have to be clinically diagnosed as depressed. In some cases, a person who feels sad will try and cope with the emotion by splurging on material possessions, such as a brand new pair of sneakers, gourmet food, or even a brand new car. Being upset often triggers the habit of spending hastily. It blurs the line between logical and impulsive purchases. Unfortunately, it can continue to become a cycle whereby you get depressed even further as debt accumulates, which makes you buy more and dig yourself deeper into debt.


Being sad can be dangerous to your wallet, but doing the opposite, which is being happy, doesn’t save you from making financial mistakes either. It’s all too common a story for high-paid athletes, celebrities, and high-profile CEOs and small business owners to reach their financial peaks only to plummet down at headline-grabbing speeds. Being too happy can also restrict you from thinking and deciding logically. It takes reasoning out of the equation and makes any and every purchase a justifiable one in your mind. Being too happy can lead a person to buy one or more cars or houses even if they don’t need to.



Stressing over even the simplest of problems can drive you into insurmountable debt. This particular characteristic usually leads to paralysis when buying investments. Being apprehensive forces you to make rash decisions when pressured by other people, such as family and friends. To shield yourself from this trait, work towards becoming more knowledge.


Recklessness may suggest the person is also undergoing depression. However, there are cases when a person is simply financially reckless due to ignorance. Being reckless causes you to have to acquire more resources to satisfy daily needs and demands. Recklessness may also subject you to financial consequence from breaking other people’s belongings and properties. Work towards protecting your finances and lifestyle by being more careful with your possessions and the possessions of other people and by acquiring an insurance policy to cover your assets. Cheap car insurance with decent coverage features can save you thousands of dollars from repairs, replacements, and injuries in case you get into an accident.


Fear comes from not knowing what to do with your money or lack thereof. People often fear sound investment portfolios offered by professionals because they simply don’t know anything about the offerings. Fear of being embarrassed also paralyzes people from seeking financial help when they are slowly sinking to the bottom. Just like with the other emotions aforementioned in the article, fear can be dangerous because it can spark a downward spiral of debt and poverty for the remainder of the person’s lifetime.

Emotions are unarguably a critical factor when it comes to how society manages its resources, specifically money. Both negative and positive emotions can control how you spend and earn money thus it makes sense to stay hyper-focused and proactively aware of what emotions you are exhibiting on a daily basis. When it comes to money, always treat it from a logical perspective and try to leave as much of the human emotion from it as possible. Any successful person with zero debt will tell you that smart investing and emotions are never a good combination.

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