Welcome to “A Rich Life,” a new column by Shaun Maslyk, Certified Financial Planner and Certified Financial Behaviour Specialist, where he explores how financial psychology helps us understand our real-life money stories.
You’ve probably heard the familiar advice to “take the emotions out of investing.” But emotions are a natural and essential part of decision-making—financial decisions included. Emotions are entwined with human physiology and influence how we act; they can’t simply be removed. Recognizing that you feel—and learning how to work with those feelings—can actually improve your financial outcomes.
If you’ve tried and failed to remove emotion from your money choices, that’s OK. It means you’re human—and you can use that humanity to make better decisions.
Here’s one example.
How a mom checked in on her emotional investing
Julie is a 37-year-old working mother who became increasingly anxious about saving for her children’s education. Worried that her kids might miss out, she trimmed household spending and cut back on her retirement contributions, despite her husband’s objections. Her focus on education savings turned into an obsession that created tension at home and left the family’s long-term goals out of balance.
Over time Julie realized the driving force behind her behavior: she had never been able to attend college herself, and that fear pushed her to overcompensate. Recognizing that connection changed everything. She learned to pause and name the emotion—fear—then soothe it by reminding herself she was a caring parent and that her children’s opportunities wouldn’t automatically mirror her own past. She also consulted a financial planner and agreed on a balanced plan that protected both education goals and retirement savings.
Putting a little time and awareness between the feeling and the reaction helped Julie make calmer, healthier choices. Simply naming and acknowledging the emotion reduced its power over her decisions.
Money itself is neutral—people assign meaning to it
Money—cash, bank balances, investments—is a neutral tool. People give money meaning based on experiences, values and fears. Those meanings can produce intense emotions because money affects our security, identity and relationships. As discussed in earlier columns, our past and our stories shape how we think about finances.
Surveys show money is a leading stressor for many Canadians. Part of the problem is emotional illiteracy around finances: when we avoid uncomfortable feelings, we also avoid learning about money, tracking it, and making sensible plans. Acknowledging emotions isn’t a weakness; it’s a lens that helps us understand why we behave the way we do and how to avoid reactive decisions.
For some people, emotional reactions lead to over-saving or obsession like Julie’s. For others they produce missed payments, impulsive spending, or risky short-term bets. Becoming aware of the emotions behind those behaviors is the first step to change.
Common emotional cycles in investing
Investing and money can trigger many emotions. Here are the most common ones and how they tend to influence decisions:
- Fear of not having enough can prompt panic-driven choices, such as hoarding cash or selling investments at the worst time.
- Greed pushes buyers toward short-term gains and speculative decisions that undermine long-term returns.
- Stress impairs executive function, making it harder to budget, plan or even open financial statements.
- Joy or relief after a gain can lead to impulsive spending, taking on unnecessary debt, or chasing risky opportunities without proper evaluation.
How to make emotionally responsible investing decisions
You don’t need to eliminate feelings to invest wisely. Instead, learn to notice and manage them so you can make thoughtful, rational choices. Below are practical strategies to help you recognize emotional influences and respond constructively:
- Build and maintain a monthly budget. Tracking income and expenses clarifies where feelings influence spending and where adjustments are needed.
- Journal regularly about your financial thoughts and feelings. Even a few lines a day or a weekly entry helps you spot patterns and emotional triggers.
- When a financial decision produces strong emotions, pause and practice deep breathing or short meditation. Simple calming techniques reduce reactivity and give your logical brain a chance to catch up.
- Reflect periodically on past decisions to identify recurring emotional triggers—what pushed you to act and what the outcome was. Use those insights to plan better responses next time.
- Talk with a qualified therapist if money worries are tied to deeper emotional issues. Professional support can help untangle long-standing beliefs and develop healthier coping strategies.
- Work with a financial planner for an objective, long-term roadmap. An advisor can translate emotional goals into concrete plans and keep you accountable to your priorities.
- Invest in your financial education. Understanding basic concepts builds confidence, reduces fear, and helps you separate short-term emotions from long-term strategy.
By naming emotions and creating small habits that interrupt impulsive responses, you give yourself the space to make wiser financial choices.
USE TOOL
Shaun Maslyk hosts the Most Hated F-Word Podcast, a show that explores the psychology of money and helps listeners understand their relationship with finances. As a Certified Financial Planner and Certified Financial Behaviour Specialist, Shaun offers practical insights into personal finance and well-being. For listeners interested in the intersection of emotion and money, he has episodes that dig into financial psychology, inner money critics and strategies for peace with your finances.
Read more on money:
- What’s your money story?
- Train your investing brain
- From being wired to spend to the emotional attachment to money, Shaun Maslyk unpacks how psychology can affect finances
- What is financial psychology?