How Emotional Reasoning Affect Your Personal Finance

by J B

It’s difficult to believe what we’re feeling isn’t genuine at times. But there’s believing your intuition and then trusting your feelings so much that people accept things even though all facts contradict them.

We delve deeper into emotional thinking and how it pertains to personal finance in this article. Emotional reasoning can prevent you from accomplishing many of your financial goals, so we’ll wrap up with some pointers on how to become more objective and remove any emotional reasoning barriers.

What is emotional reasoning?

You may be utilizing emotional thinking unless users focus the majority of the judgments on the emotions or dismiss data to support these feelings. Let’s explain emotional reasoning somewhere further once we’re in how that applies to financial planning. Cognition distortions are a sort of personal reasoning.

Emotional reasoning is a sort of erroneous reasoning in which a person assumes something is true based on their emotional response to it. They rely on their emotions and overlook the facts, even when there is proof to the contrary.

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What’s the connection between emotional reasoning and personal finance?

So, how does this relate to your finances? Money and feelings are inextricably linked. Emotions play a big role in financial planning, as you’ll see with the emotional reasons instances below, from decision-making to self-esteem to confidence to spending guilt and more.

Understanding emotional thinking will help you realize how it may be preventing you from reaching the financial progress you desire. Even better, if you understand how it manifests in your life, you can make changes and defeat it, allowing you to advance past the roadblocks it has erected.

How to get rid of the emotion thinking blockages become more realistic

Consider following actions if you think emotional reasoning is preventing you from attaining some of your financial goals:

Recognize your emotions and thoughts

Identify what you’re thinking and feeling first. Let’s imagine you’ve determined you’re unfit for the current position. You’ve determined you’re a phony. After you’ve found this, dig deeper to see if it’s based on facts or your feelings.

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Seek the advice of a reliable friend

The next stage is to start gathering data from outside sources. In our case, you may inquire about the skills from an acquaintance or coworker. Tell them about your problems and solicit their advice. An outsider’s perspective helps place all that together.

Always return to the facts

Examining most of the data is one of the most critical steps. What evidence do you have to back up your claims? What evidence, in our scenario, supports your belief that you are unqualified for your job? You’ll probably find more facts that contradict instead than confirm the feelings.

Seek expert assistance

While practically everyone engages in emotional reasoning sometimes, not everyone is capable of overcoming it on their own. When emotional reasoning begins to interfere with your life and finances, it’s time to seek professional help from a clinical psychologist.


Emotional thinking can get in the way of reaching your goals in personal finance and beyond. Fortunately, you can learn to recognize when you’re relying on your emotions to prove your point rather than the facts and then adjust your course.

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Did any of the instances of emotional reasoning above resonate with you? Did they make you think of other ways you could use emotional reasoning? If that was the fact, you’ve finally recognized that you’re not alone but there can solve the emotional thinking hurdles and stop trusting your feelings as evidence of the truth!

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