Sorrow Can Cause Financial Loss

     Gas-Price-Rises

        Impatience brought by sad mood can cause a financial loss. Research shows that your emotions affect the decisions you make.

        People feel sad at some point and they can impatiently make financial decisions with higher profits in the short term, but significantly less in the long run. In such a state they earned less money. People who feel sorrow evaluate future benefits less compared with those who had a neutral mood.

        Experiments reveal that sad people are not very smart when it comes to some financial issues. Sorrow prepares people that a loss of greater profits will happen in the future.

        These findings, that scientists came across, have important implications for the design of public policy, particularly in areas such as estate planning and regulation of credit cards. According to them, when it comes to design of public policy, the full range of psychological processes through which decisions are made should be considered. A good understanding of these processes can help to better access to economic problems that plague people created by the growing reliance on credit cards.

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