Want to stop spending and start saving? Here’s an unconventional way to do just that: simply socialize more. According to Science Daily, people who feel excluded may actually be more likely to take bigger financial risks.
Researchers from Hong Kong University of Science and Technology conducted a series of tests to determine the relationship between risky behavior and feelings of exclusion. They found that the more isolated people feel, the more likely they are to make riskier financial decisions. They gambled more and chose longer odds for potentially better payoffs.
"In the absence of social support, forlorn consumers apparently place more value on the power of money to secure what they want socially," says assistant marketing professor Rod Duclos.
Understanding when you are most vulnerable to temptation is the first step to making informed decisions. Now that you have an idea of how your emotions can influence how little or how much you spend, you can now manage your money more effectively.
(Photo by Jorge Franganillo via Flickr Creative Commons)
