Investing Insights

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 Introduction00:43 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