Psychology of Money: Finessing Financial Security

Original Air Date Wednesday, May 18, 2022

These days, more often than not, financial market headlines include the terms ‘market crash’, ‘bubble bursting’, ‘inflation’, or ‘downturn’. What do these terms mean for long-term investors or for those who don’t invest but are impacted by job loss or economic hardship? How can everyday Americans attain enough financial security to be happy?

To get expert advice about staying financially healthy, Harvesting Happiness Podcast Host Lisa Cypers Kamen speaks with two economic experts who talk about the psychology of money and how to achieve financial security.

Michelle Singletary is a well-known financial advisor and a syndicated columnist for the Washington Post and other high-profile news outlets. She discusses tips for creating a savings cushion in the event of an emergency and how financial security means paying for basic needs first. The information is from her book, What to Do with Your Money When Crisis Hits: A Survival Guide.

Scott Nations is the president of a financial firm and a regular contributor to CNBC. He talks about his book, The Anxious Investor: Mastering the Mental Game of Investing, and the human behaviors that lead us to either be averse to risk or embrace it.

Tune in:

Lisa Cypers Kamen · Psychology of Money: Finessing Financial Security with Michelle Singletary & Scott Nations

Meet Our Guests:

Michelle Singletary is a syndicated columnist for The Washington Post and her award-winning column, “The Color of Money,” appears twice a week in dozens of newspapers across the country. She is a frequent contributor to NPR and regularly appears on CNN’s weekend editions of New Day, CNN Newsroom, and The Situation Room with Wolf Blitzer. In 2020, The Washington Post celebrated her long and distinguished career at the paper with the Eugene Meyer Award, its highest journalistic honor. Singletary earned a master’s degree in business and management from Johns Hopkins University. Currently, she lives in Maryland with her husband and three children.

Book: What To Do With Your Money When Crisis Hits: A Survival Guide

Michelle Singletary — Financial Security:

The minimum amount of money you need to be happy. {1:54}
In her book, What to Do with Your Money When Crisis Hits: A Survival Guide, Michelle offers tips for those struggling with financial insecurity. {3:16}
Worrying about a credit score is not what we should be doing when a difficult thing in life happens. {7:45}
Michelle’s two-pots of money system offers solace when unplanned emergencies happen. {13:23}
The big areas to cut back on when building a savings and security account. {16:55}
Michelle’s views on investing for retirement and when the stock market goes crazy. {22:10}

Follow Michelle Singletary:

Scott Nations is the president of NationsShares, a financial firm that specializes in market volatility analysis. He was a regular contributor to CNBC, where he discussed markets and other investment topics. He is the author of A History of the United States in Five Crashes, as well as two technical books for option traders, Options Math, and The Complete Book of Option Spreads and Combinations.

He is based in Chicago.

Book: The Anxious Investor: Mastering the Mental Game of Investing

Scott Nations — Psychology of Money:

The goal of Scott’s book, The Anxious Investor: Mastering the Mental Game of Investing, is to help people understand some of the behavioral biases that humans display. {28:02}
Scott’s advice for every investor, no matter how the market looks. {30:42}
The behavioral psychology of investing and how to control our impulses by taking risks. {33:46}
Shaky investment strategies, fantastic objects, availability bias, and weaning away from the herd mentality. {41:10}
When the market is down, Scott advises investors to embrace it. {48:08}

Follow Scott Nations:

Shareables:

“Happiness equals security or security equals happiness.” @SingletaryM on @HHTalkRadio Share on X “I want to give people permission to grieve when financial issues happen in their lives.” @SingletaryM on @HHTalkRadio Share on X “We gamble for entertainment. Investing is a very noble exercise.” @ScottNations on @HHTalkRadio Share on X “We have to change the way we approach investing.” @ScottNations on @HHTalkRadio Share on X

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Grab More Joy Below:

Are We Happy Yet? Eight Keys to Unlocking a Joyful Life — A boot camp manual for greater emotional fitness. Happiness waits for no one and sometimes we all need support. What is getting in the way of your happiness right now?

H–Factor: Where is Your Heart? — Lisa’s documentary film explores the journey of human happiness. Emotions are contagious and happiness is a universally desired state. We tend to forget we all have the freedom to be happy or the liberty to be miserable each day.