People are stressed out about money, with most of us struggling to make ends meet due to abusing credits cards and amassing consumer debt. Some tips on how to change your spending behaviour.
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Research suggests that the reason people may put off funding their 401(k) plans or managing credit card debt is because our perception of finance as ‘cold’ conflicts with our hot-blooded emotions.
Alberto Cardaci, Università Cattolica del Sacro Cuore - Catholic University of Milan
Under some circumstances, people may feel wealthier than they actually are and this makes them psychologically more prone to increase their spending, as well as their borrowing.