Money = Feelings

We all know how important it is to talk about money.

But if talking about money is so important, why do we have such a hard time with it?

Maybe because money is not in the math department, it’s in the psychology department.

We’ve been taught, if we were taught anything about money, that it’s about spreadsheets and calculators. It should be rational and reasonable. But then we go to open the AmEx bill with our spouse or partner, and suddenly we find ourselves in a fight.

It’s a little bit like grabbing an electric fence you didn’t know was electric.

We all know that no matter how worried, scared, or excited we’re feeling, 2+2 always equals 4. But when it comes to money, 2+2 equals feelings. Because, it turns out, money is not in the math department. It’s in the psychology department.

Since money is such an emotionally charged subject, it can be hard to talk about. We get that. But just because it’s hard doesn’t mean we get to avoid it.

There’s a pattern of behavior around money. Overspending, buying cheap plastic items thinking they will bring us happiness, not saving. In other words, not aligning our use of capital—in terms of spending, saving, and investing—with what we say is important to us.

Nobody’s ever taught us how to do this. So it’s time we teach ourselves.

And this week’s very simple, narrow, focused lesson is just this: Talking about money equals talking about feelings.

We really want to emphasize this idea. We believe there's something important here.

If money is all about spreadsheets, how does greed fit in your spreadsheet? How about fear? How about the concern that you’re not going to be able to provide the life for your kids that you hoped?

Those are all money issues wrapped in feelings. Or are they feelings wrapped in money issues? Either way, the point still stands. Money = Feelings. Not math.

The sooner we realize that is true, the sooner we can begin having realistic expectations around what it’s like to talk about money.

 

5-Minute Core-Strengthening Workout

Strengthening your abs does wonders beyond aesthetics. It's like having a solid foundation for a house – it supports everything! A strong core improves posture, reduces back pain, and enhances balance and stability. Plus, it helps in everyday activities, from lifting groceries to playing sports.

Even if you only have a little time to dedicate to a core workout, this circuit will get you going and only takes 5 minutes. Here are the moves:

1-minute high plank: Your hands are on the ground, your arms are straight, and you are holding your body up with your arms and a tight core.

30-second side plank on each side: One hand is on the ground, your arm is straight, and the other is in the air. You can do a side plank with your feet stacked on each other (most challenging), your feet staggered (a little easier), or your bottom knee on the ground.

1-minute boat pose: Your feet are in the air, and your arms are by your side, reaching to your feet. You can pose with your legs bent (easier) or straight out (harder).

1-minute crunches: Lift your shoulders and upper back off the ground without pulling your neck.

1-minute dead bug: Lay on your back and alternate, extending out the opposite arm and the opposite leg simultaneously.

Tip adapted from Mind Body Green Movement

The Week on Wall Street Stocks ripped higher last week on a dramatic retreat in bond yields triggered by easing inflation and a slowing labor market.  The Dow Jones Industrial Average jumped 5.07%, while the Standard & Poor’s 500 surged 5.85%. The Nasdaq Composite index rocketed 6.61% higher for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.12%.1,2,3   Stocks Rise Stocks jumped higher right from the start of the week, shaking off the prior week’s sell-off. The combination on Wednesday of the Fed’s decision to keep rates unchanged, which accompanied dovish comments from Fed Chair Powell, and a reassuring Treasury announcement on future bond sales, sparked a third straight day of gains. Slight employment gains and weak manufacturing data provided an additional impetus. The rally continued on Thursday following a sharp drop in bond yields that was driven, in part, by substantial productivity gains and decelerating wage growth. When Friday’s monthly employment report was lighter than forecast, yields pulled back further, and stocks added to their week’s gains.   Signs of Labor Cooling Last week’s employment data showed potential for a cooling labor market after many months of confounding economists’ expectations. The first sign was a lower-than-expected growth in new private sector jobs in October, as reported by Automated Data Processing (ADP), which showed a gain of 113,000 new jobs versus a forecast of 130,000, while job openings were little changed.4 Initial and continuing jobless claims also rose, exceeding consensus estimates. On Friday, the government’s monthly employment report further confirmed a potentially cooling employment picture, showing an October slowdown in hiring (150,000 new jobs versus September’s revised gain of 297,000) and an uptick in the unemployment rate to 3.9%.5

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance

 

1. The Wall Street Journal, November 3, 2023.

2. The Wall Street Journal, November 3, 2023.

3. The Wall Street Journal, November 3, 2023.

4. CNBC, November 2, 2023.

5. The Wall Street Journal, November 3, 2023.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.  Copyright 2023 FMG Suite.^{on, and they should not be considered a solicitation for the purchase or sale of any security.  Copyright 2023 FMG Suite.}