Most people need some “me time” at least occasionally, but a new study shows that being alone prompts people to take bigger risks with their money. Published in the Journal of Consumer Research, the study put participants through situations in which they were made to feel a sense of exclusion. They were then asked to make a financial decision. Participants who felt excluded always chose a riskier financial situation than those in the control group, who weren’t made to feel isolated. This and other related studies confirm what we probably already knew: People will try to fulfill their needs and desires through popularity or money. Interpersonal rejection makes spending money seem all the more important.
Read the entire article here: Thought-provoking Thursday: is Loneliness Making You Take Financial Risks?
Carrie Rattle is a Principal at BehavioralCents.com, a website for women focused on mind and money behaviors. She has worked in the financial services industry for 20+ years and hopes to inspire women to better prepare themselves for financial independence.