by Ann Carl Bailey
People often believe that financial management is all about money and has nothing to do with emotions. Wrong! Learning to manage your emotions actually helps in making rational financial decisions that works to your advantage.
Mariel Vincent Rapisura, president and chief executive officer of SEDPI, speaking to employees of the Department of Trade and Industry during their financial wellness training, said there are five emotions that prevent people from achieving financial success. These are fear, anger, guilt, shame and envy – emotions you have to watch out for. When gripped with these emotions, the choices you make can become irrational and financially detrimental.
Grabbing a cup of coffee in Starbucks to look cool with your colleagues is not a good financial decision. Flaunting designer clothes you can’t afford isn’t either. Taking out loans to purchase the latest high-end gadgets will lead to your financial grave. “Fear, anger, guilt, shame and envy drive these irrational behaviors,” Rapisura explained.
“You should learn to find joy in simple things. He suggests to practice living a lifestyle that is equivalent to approximately half of your monthly income. The other half should be budgeted for insurance, savings, investments and taxes. This could be achieved with a little bit of sacrifice and a lot of creativity. This way, financial freedom can be closer at hand. Remember that the pursuit of happiness isn’t measured through material belongings,” Rapisura concluded.
The first batch of the Department of Trade and Industry’s financial wellness program for its employees was held on November 16, 2015 at Saint Giles Hotel in Makati. The second batch will be held on November 27, 2015.
