A reader recently asked me whether I ever get nervous before a big investment, like buying shares. A better question would perhaps be when am I not nervous? Although my post today takes investing in the share market as an example, it’s really relevant to almost any worry. Not only investing anxiety and money troubles, but general concerns that keep you up at night.
Tag: Mr Money Mustache
Recently, I caught up with someone I hadn’t seen for a long time. Two decades, in fact. And they asked me what I’ve been doing. I gave them the canned version of events, ending with my most recent news (that my husband and I had left our jobs a year and a half ago and are traveling the world). Their response? ‘It’s much easier when you don’t have kids.’
Money not only affects the media, but the media can influence our money decisions. Journalists use words such as ‘crisis’ or ‘storm’ to create emotion. This is true of blogs too, with tools like CoSchedule’s headline analyzer encouraging bloggers to use uncommon, powerful, emotional words. (You may be interested to know that analysing the headline for this post, the word ‘money’ counted as an ’emotional’ word).
But how does this influence occur, and what can we do about it? Some more of the presentations at the Money Talks? conference elaborated on this theme. Continue reading “How does the media affect your money decisions?”
We arrived in Milan, Italy yesterday, hungry. All throughout the flight, visions of plates overflowing with pasta danced in my head.
Upon landing at the airport, we took a bus straight for the city. On the way, we fervently started looking up Italian restaurants – and, no surprise, there were over 6,000.
But all of them were closed.
The herd instinct is ‘a mentality characterized by a lack of individual decision-making or thoughtfulness, causing people to think and act in the same way as the majority of those around them’. It’s a familiar term in investing, where investors are influenced by the positivity – or negativity – of others, and their behaviour then feeds into the market, perpetuating this cycle and sometimes leading to bubbles or crashes.
But the herd mentality I want to talk about today is the one that is much bigger than the stock market, and permeates almost all of our money (and other) decisions.
‘I love your shoes!’ How should you respond to such a compliment? With gracious acceptance? With modesty?
It’s probably the influence of my time spent in Japan, but my usual tendency is to downplay any compliment.
‘Oh, these? They’re only cheap! They were reduced to $20’
For me, responding to compliments with a simple ‘Thank you’, as is common in many European cultures (including Hungary, where I am now located) goes against the grain.
Complimenting ‘is a complex sociolingustic skill’, says Holmes (cited by Grossi), and in Japanese society, a desire for modesty generally outweighs a desire for agreement (Leech, cited by Pohl). Using Japanese norms in Australian society has sometimes surprised – or even annoyed – those I’m speaking to. ‘Don’t say that!’ they respond with utter horror, ‘I don’t need to know how much they cost!’ highlighting the taboo of talking about money.
There’s a stigma attached to the word ‘cheap‘, especially when applied to a person. Something that is cheap is meaningless, to feel cheap is to be embarrassed. No one wants to be a cheapskate – someone who is labelled as ‘stingy’ and ‘miserly’. But just like the word ‘budget’, should ‘cheap’ be viewed so negatively? Surely saving money – or at least, not wasting it – is a good thing?