June 13, 2023

We’ve written recently about the relationship between personality and financial behavior. And it’s a well-known fact that wealth accumulation and investment management is affected as much, if not more, by non-financial factors as by financial ones. Because financial outcomes depend so heavily on behavior, how you manage your emotions in connection with your finances plays a huge role in the type of investing and financial management experiences you have. In particular, the emotional urge to “do something” in response to short-term changes in market conditions often delays or derails many investors’ progress toward their long-term financial goals.