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Psychological Contagion

Having dealt with the coronavirus now for over 6 months, we have become quite familiar with a viral contagion. It spreads quickly and we can’t always tell who has it.

Thankfully, there are precautions that we can take to reduce the likelihood of catching a viral contagion, such as; regular hand washing, wearing masks and staying at a safe distance from others. But they aren’t the only contagions.

There are also psychological contagions that can influence us to feel, think and behave like others. These carriers spread the contagion by causing us to make financial decisions that go against our better judgement and may actually impede our own financial wellness.

Like viral contagions, we can take precautions to stay safe and reduce the likelihood of “becoming infected”, such as; distancing ourselves from social and news media that may be biased and giving careful consideration to the financial consequences of acting while in a heightened emotional state.

Perhaps the best precaution is staying in contact with your trusted advisors.

Contact us whenever you begin to feel like you have “become infected”. We are here to help you stay on the path to Financial Wellness.

©2020 The Behavioral Finance Network. Used with permission