The Economic E -Factor. The “E”-motions of Finance…and “E”-financial!
by Efin Advisor | February 2, 2009
We at Efinancial are here to relieve the stress that sometimes occurs in the search for financial value. We do that in the form of insurance products and services. Our job is a simple one. To find you the very best values in life insurance, health insurance and other protections your family depends on.
The “E” in our name seems especially fitting to a story about Financial E-motions which was published this week in TIME magazine.
Many experts speculate that our current financial crisis is one that is based on emotions. A lack of confidence is what is ailing us they say. If people would only “feel better” about the economy and feel more secure (like banks about lending money), then the pistons of our financial engine could get moving again.
Strong feelings can be a force for change. For instance, feeling anxious about money can prompt us to save which is generally a responsible act (although the motivation to spend money is what a stimulus package hopes to spark). The TIME magazine article points out that pain works in the opposite way. People are more likely to spend money to soothe the bumps and bruises in their lives. The emotion to avoid is fear. Fear is the enemy of action. If we liste to messages of fear, the problem is framed as an abyss, a downward spiral.
At times like these, our emotional intelligence can be as important as our mental intelligence. The calm and cool demeanor of our new president should be an inspiration for maintaining an even temperament. Still, it’s hard, and it’s understandable, to feel frustrated, and even angry in the event of a job loss or other personal misfortune. How do you “feel” about the economy? We’d like to know!
I think that we can continue to go back and forth on whether we believe that business confidence is the key issue to the revival of the economy. A few months ago on this blog we debated this very issue extensively, and I think that we all eventually agreed that business confidence is a good thing, and is important, but is not the lynchpin. Some other factors have to be helping the economy to grow if it is to stay strong. Personally, I feel good about the economy now that we have responsible people taking care of it.
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I did feel good about the economy, but now that I see where the bailout money has gone- to pay large bonuses to fat cat executives- instead of to create jobs or retain them. How am I supposed to have confidence in our leaders and our economy if even in the face of the worst economy in 80 years, we are still not able to pull together, and work towards the common good. People can be good to each other, but I fear that by the time we realize that- it will simply be too late.
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I think many people are wondering when the downward spiral of the financial markets will end.
With an increase in unemployment anticipated at up to 10% nationwide by 2010, many of us will be using are retirement savings just to get by, especially if we lose a job, or our home.
I think this may be a good experience for our youth to understand what can happen and that we need to be responsible for managing our money properly, and relying more on ourself, than a job from an employer.
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