Personal Finance News Tuesday 12/4

Phil's Personal Finance Tip of the Day:

Feeling sad? Be careful with your money

By Blake Ellis | CNNMoney.com – Thu, Nov 29, 2012 3:02 PM EST

When you're sad, it's not just your waistline you need to watch. Unhappy people are also more likely to make foolish money decisions, new research shows.


Sad people will often forgo extra money further down the road in order to get less money right away, according to a study conducted by professors at Harvard, Columbia and University of California Riverside.


When offered smaller amounts of cash immediately versus bigger sums three months later, sad people accepted 13% to 34% less money today than their not-so-sad counterparts did -- just to avoid the wait.


"The idea is that when you're sad, you want to accelerate consumption -- it's all about getting money sooner," said Ye Li, co-author of the report and an assistant professor of management at University of California, Riverside.


The researchers conducted a series of experiments in which about 600 participants were assigned to a neutral, disgusted or sad condition. To induce sadness, participants were asked to view a three-minute clip from the movie, The Champ, where a boy watches his father and mentor die in front of him. Neutral participants watched underwater scenes of the Great Barrier Reef, while participants in the disgusted condition watched a clip from Trainspotting showing a man reaching into a filthy toilet.

To read the entire article from CNNMoney.com:
http://finance.yahoo.com/news/feeling-sad-careful-money-105000277.html

Inspirational Quotes@Inspire_Us from Twitter:
You either suffer the pain of discipline or the pain of regret. Pick a side.