Create a New Financial Plan For the New Year: Part 1

Investing Insights

English - January 06, 2023 10:00 - 15 minutes - 13.9 MB - ★★★★ - 379 ratings
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Previous Episode: Stock and Bond Markets’ Wild Ride in 2022

Next Episode: Create a New Financial Plan for the New Year: Part 2

In this two-part episode, Sarah Newcomb, director of financial psychology for Morningstar Inc, explains how to rethink budgeting, overcome overspending, and stop fighting about money.

00:04 Introduction

00:43 Financial advice tends to tell people to break down their budgets into “wants versus needs”. What are your thoughts on this concept?

02:55 How should we think about our needs? What should we include? (basic categories from Maslow: survival, security, love and belonging, esteem, and meaning)

04:04 You’ve written that “our wants point to needs.” Can you explain that?

05:14 How should we rethink budgeting if we don’t follow needs versus wants?

08:04 What are some ways to identify possible strategies to meet a need and save money?

08:53 We know now how to meet our needs through strategies. What should people do if they tend to overspend?

11:01 How do we identify the emotion that’s driving the urge to spend too much?

12:14 Now, that the emotion is known, what do we do next?

Read about topics from this episode.

Hate Budgeting? Try Rethinking It.

Got the Urge to Splurge? 4 Steps to Overcome Your Overspending Habit

How to Avoid Arguing Over Money By Sarah Newcomb

What to watch from Morningstar.

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