Don't Let Emotions Derail Your Finances

She's smashed a car window with an umbrella and held her own kids hostage. Britney Spears’ emotional downward spiral not only landed her in the psychiatric ward, but also meant she lost her control over her estimated $40 million dollar estate. Now the pop-star is on a budget imposed by her dad, Jamie Spears, of $1,500 a week. That’s a far cry from the shopping sprees and Mercedes (DAI) that Spears is known to favor. And you know what? You might not have $40 million dollars, but if you are emotionally unbalanced, your finances will suffer.

When it comes to financial literacy, most people assume that personal finance is strictly about numbers and calculations applied to money. Truth is, finances have a lot more to do with emotions than most people believe. These emotions often show themselves as “money demons,” and how they guide you in your relationship to your money can determine whether you stay poor or create wealth. If you can conquer the money demons in your life, you will have gone a long way to taking charge of your finances.

The first step to finding whether or not you have financial demons is to understand your relationship to money. Until you are truthful about the emotions that influence you when it comes to money, you can't put into practice all the financial information you have gained. Here are some common financial demons. See if they are hiding within you.

Complacency

When times are good and everything is going as planned, people often become complacent and believe that the good times will last forever. If money is tight, they figure the next raise or bonus will solve it.