How Does Psychology Affect You in Every Day Life?

Psychology affects you more than you will ever know. In your everyday routine, there are several ways this word affects you. From the time you get up till the time you go to bed, psychology affects you. The way you feel inside is the way you feel for the rest of the day. The people you encounter on a daily basis impact you as well. The things they say to you and what they do to you have a profound impact on who you become.

Psychology and YOU

Taking care of you mentally is very important. Most people “go-go-go” until they can’t take anymore and this impacts them severely.  Taking a break can really help you mentally. Talking to someone who understands where you are coming from can also help your mental state. Not everyone who needs to chat with someone has psychological issues. Psychology is about who you are and the experiences you encounter. That’s why it’s important to understand psychology and everyday life because it impacts everything.

Psychology & Others

Let’s face it; you might meet a few people in life who make you feel a little awkward. It’s important to evaluate the psychological state of people before you can completely understand them. The way a person feels about themselves can influence how they treat you.  Talking to new people can help you get a better perspective on psychology and everyday life for others. Get to know their nonverbal skills, so that you may understand their psychological state a little better.

How does it impact you?

Psychology is not just a degree you can get in college or a job you can have later in life. Those who are skilled in psychology do understand the ins-and-outs of it, but understanding it can help you succeed in everyday life. It can help you communicate better with those around you. It can help you improve who you are, so you can excel in activities.

Psychology is a mental state and it’s how you react to your surroundings. So, not matter if you are studying psychology as a grade or trying to become a more influential person in society, it’s a great skill to understand. The first step in understanding it is realizing that everyone is so different psychologically, but it can help you understand yourself and them better. Now you have a better understanding of how psychology can affect you in everyday life.

Is Depression All in Your Head?

Most people face depression some time in their lives, but the big question is “is it all in your head?” There are so many different types of depression that sometimes only a psychiatrist or psychologist can diagnose you. Seasonal depression and post partum depression are two very common types of depression. Therapy and prescriptions are common ways of how people overcome these types of depression. Why do some people think they are depressed when they’re not?

In some cases, a person is looking for an excuse for how they feel. In very few cases, people are not depressed, but instead that have a mental illness that they need help with.  There is a very fine line between depression and a mental disorder. Those who think they may be suffering with a mental disorder or some sort of depression, should still seek help from a licensed professional.

People often think that they are depressed because another person tells them they are. Keep in mind that there are signs of depression out there. It’s okay for someone to tell you that you “might” be depressed, but never take someone else’s word for it. Always get an opinion from a professional, before it gets too bad.

Depression comes in all shapes and sizes and for the most part, it’s not just in your head. When you are depressed, you feel it all over your body.

• You feel tired
• You feel alone
• You lose interest
• You have no motivation

Those are just a few symptoms of being depressed. Studies show that depression is different for most people and it can be brought on by a variety reasons. Having a new baby, losing a loved one, changing jobs, losing a job or just seasonal changes are all causes of depression. No matter what is causing your depression it is best if you get help figuring out what it is. In some cases, it could be as simple as taking more vitamin D. Other times, you may need to take a stronger type of medical that helps balance out your hormones.

Keep an eye out for your spouse and children because sometimes they do not notice the symptoms either. It’s hard to not get defensive when someone says you might have depression, but it never hurts to get some type of help. Depression can lead to far greater psychological issues and you do not want to go down that road.

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What is Gamefly and How Can It Help You?

Maybe some of you are not yet familiar with the Gamefly and what it has to offer. Gamefly is one of the online rental stores that offer over a thousand games. Most of the time, people are going out to the stores to rent their favorite games. The only way to do this is to travel and if you are far from the rental place, you will experience more hassle in going to the shop. This is where Gamefly got their idea to help the people in need in order to make their rental much easier and faster.

With Gamefly, you can find lots of games to choose from and they have over thousands of games that you can play and rent. You don’t need to go far because with just the help of your computer and an internet connection, you can surely rent your favorite games online. Imagine the time and effort that you can save if you can just rent your favorite games online. Nowadays, this is the easiest way of renting a game that most people use. No more standing around and choosing what you like and no more driving to the game store. If you want to be sure about your orders, you can check the Gamefly reviews.

You can now have over thousands of games to choose from right at the comfort of your own homes. Choosing is easy online and once you have already selected your favorite pick, Gamefly will automatically ship the games right to your front door. You can now enjoy playing the games that you like for as much as you want. Just return the game in a pre-paid mailing envelop and wait for your next shipment at your mail box. Gamefly is now trying to make you enjoy your favorite games in the utmost comfort and lesser cost that you can afford.

Building Your Comfort

Certainly, you all have a dream house that is drawn in your minds. Home is like a mirror that reflects your personality, behaviour, emotion, style and passion. It is where you develop a strong and satisfying relationship among the members of the family and it is where you bring up your children to be morally upright individuals. It is a place for rest and relaxation, and most importantly, a place of love, unity and affection. The state of your home can greatly affect your mental health, behavior and emotions. No doubt that it’s always great to rest your tired mind and body in a relaxing and comfortable home after a stressful day of work.

Whether your house is big or small, you should try to make it adequate enough for your needs. It should provide the security, privacy, comfort and convenience as an adequate house should be. Decorating homes depends on the personal interest of the owner. It can sometimes be a tiresome task. But when you have all the things you needed to create the look you’ve always wanted, it won’t be. It sure does an exciting activity, letting your creativity and imagination handle the designing of the interior of your house.It will be more practical if you personally decorate your home. It will not only save you from hiring a professional but will also specifically suit what kind of design you want.

Joann Fabrics and Craft store is the largest retailer shop of fabrics and crafts in the United States where you can find home accents and accessories to decorate and style your homes at their best prices. They have a great collection of home décor fabrics, floral, wall décor, and also wedding décor products. There is no need to worry about going over your budget since there are Joann Fabrics coupons on their sites that you can use to avail discounts. You can even print the coupons and use them to save more of your money.And not just these, if you can’t find the design that you are looking for in their items, you can create your own home décor on their website and order it afterwards. Classes all about sewing and crafting are also offered by Joann Fabrics.

Joann Fabric and Craft ensures their clients to provide all the things they need in the world of crafts at affordable prices.Budget for home décors are important, however, letting your creative and resourceful mind work will help you much.

Exercise the Mind with Chuck E Cheese Coupons

Are you wondering how you can save money at Chuck E Cheese? If in case you do, you will know how as you continue reading.

Chuck E Cheese is a restaurant where you can enjoy and have fun together with your kids. The place can be a venue for birthday parties and other events. Children also have the chance to play and enjoy all the available video games in the restaurant. However, they can only play it if they have tokens for each game. If what you are looking for is enjoyment and entertainment, Chuck E Cheese is the best place where you can go to. However, the main thing here is how you can save money with Chuck E Cheese.

While you are enjoying and having fun in the place with your kids, you will not worry about having huge expenses if you will use their coupons. Chuck E Cheese coupons are used by most people in order for them to enjoy the place and save money. Kids will surely enjoy all gaming arcade, mini lanes for bowling, theater and many more. While your kids are enjoying, you can also sit relax and have some pizza. With the availability of Chuck E Cheese coupons, the place will surely be a complete playground for young children while you can save some cash at the same time.

You can easily find these easy access coupons on the official website of Chuck E Cheese. They have great deals of coupons in which you can surely save money. They also offer other cool things aside from these deals. They have high-class programs which can be attended by young children. These programs can surely bring so much fun to the kids. With these things, you can already give joy to your kids without spending too much.

Advantages of Using Flex Seal to Fix Stuff Around Your Home

Flex Seal is a liquid rubber sealant that provides a quick fix on leaking surfaces. People usually choose this rubber sealant over the other related products available in the market because this offers several benefits and conveniences to everyone. Flex Seal perfectly functions on repairing cracks and leakages on the roof, window trims, chimneys, gutters and many more things. People can make use of this easy to apply rubber sealant in order to totally solve the leakage brought about by unwanted holes and cracks. This product is a great adhesive and it can even fix crack and join two broken parts together again. Click here to read a more in-depth Flex Seal review.

Flex seal provides long lasting effect and efficiency and this product is of great advantage when being used because it is flexible enough to work well even on moist surfaces. Flex Seal has the ability to work even on high and low temperatures, can work on several surfaces and can even fix broken things. This rubber sealant is probably the only sealant that possesses unique features and flexible ability on working with almost all types of materials.

Another advantage of using this product is that it simplifies sealing tasks and can accommodate various repairs on other surfaces and things. It stops leakage sooner than expected thus leaving a longer-lasting effect. People will also gain advantage in using Flex Seal because it does a total repair and make over starting from the roofs down up to your house’s bathroom sink. It’s definitely versatile, flexible and an efficient tool specially created for its intended purpose.

People will find that it’s worth their money spent in buying this rubber sealant because it is highly recommended for its high quality, functionality and numerous advantages. Flex Seal perfectly suits leaky surfaces because it penetrates thoroughly into the layer that provides secure and protective bond that totally eliminates the source of leakage. Therefore people using the product are likely to enjoy the benefits and advantages the said rubber sealant provides.

Advantages and Disadvantages of the Olde Brooklyn Lantern

If you are tired of dead batteries on your flashlights and you wanted a lighting source that can light up your entire room, you better consider The Olde Brooklyn Lantern. This old-fashioned or vintage style lantern does not need batteries and comes with a stunning look. However, it has advantages and disadvantages like other available products in the market.

Olde Brooklyn Lantern can give you lots of advantages once you give it a try. Its advantages include the following:

• The lantern is unbreakable. It does not use any dangerous and flammable chemicals for it to light up. This means your family will have ease whenever they use the lantern because it is very safe and won’t give you headaches when it comes to battery replacement.

• Its glow is much powerful compared to ordinary flashlights or candles. Also, it has the ability to light up the entire area of your house.

• It has a switch in which you can adjust the illumination for better vision and brighter light.

• It comes with an attractive design that will allow you to use it as an outdoor or indoor home decor. So, whenever the power goes out, you don’t have to remember and search for the drawer where you put your flashlight. All you have to do is to turn on the lantern and be comfortable at your living room.

• This lantern can provide you exactly 100,000 hours of light so there is no need for you to worry about dead batteries or light bulbs that burnt out due to excessive usage.

Although Olde Brooklyn Lantern is great source of light, it has several disadvantages that you can take note of. One of these disadvantages is that it only comes with a single color. If it does not match with your home decor, you will have to find other convenient place where you can store it.

Pros and Cons of Using No No Hair Removal

No No Hair Removal is one of the latest methods to have a clear and clean skin. Since it is clinically proven safe and effective, more and more people are encouraged to apply this technology by themselves. With the use of No No, you will get several advantages and disadvantages.

Pros

• Painless – this hair removal system ensures that the user will experience no pain at all even if it makes use of thermal heat.
• Clean – the process is not messy. Your skin is cleaned up with special buffer along with the package to eliminate hair residue that may stick to the skin.
• Hassle-free and fast procedure – make sure that your skin is dry and clean to glide No No hair removal easily.
• Safe – it underwent different clinical testing from the board of expert dermatologist. It can be used by people of all types of skin and hair color.
• Frequency of use – this hair remover is used only for two to three times every week for first few months and subsequently becomes less after your hair started to grow again slowly because of using continuously.

Cons

No No Hair removal has so many benefits, however, it can still have minor drawbacks received from the early users and some of them are:

• Using this hair removal system requires more patience since you have to use it for several weeks before the hairs are permanently removed from your skin.
• The process is fast and easy, however the solutions and effective is not as quick as other expensive products can do.
• At first, there is smoky smell but suddenly fades away.

No No is such a great product to use despite some of its disadvantages. people are now encouraged to have this product with them to main a skin that is clear and clean.

Sometimes, We Want Prices to Fool Us – New York Times

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New York Times

Sometimes, We Want Prices to Fool Us New York Times WHEN the board of J. C. Penney ousted its chief executive, Ron Johnson — news that broke last Monday — you might say it was, in some small way, because he didn't understand Tracie Fobes. and more »

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What a Conspiracy Theorist Believes – New Yorker (blog)

On a four-point scale, from one (strongly disagree) to four (strongly agree), please rate the following statements: “The Apollo moon landings never happened and were staged in a Hollywood film studio”; ”Princess Diana’s death was not an accident but rather an organized assassination by members of the British Royal Family who disliked her”; “The Coca-Cola Company intentionally changed to an inferior formula with the intent of driving up demand for their classic product, later reintroducing it for their financial gain”; and “Carbon dioxide emissions resulting from human activities cause climate change.”

Questions like those formed the core of one of the most intriguing studies I have seen in a long time, a brand-new study, just published in Psychological Science, that investigated the dynamics of science doubters. The Australian psychologist Stephan Lewandowsky and two collaborators surveyed over a thousand visitors to online climate blogs (all relatively positive toward science), and asked them questions about free-market ideology and their views on climate science. The investigators also probed for their “conspiracist ideation” by asking questions like the ones above about faked Apollo moon landings and the assassination of Princess Diana. Some subjects were eliminated because they appear to have lied about their age (it is doubtful that anyone under five completed the survey, for instance), and as a precaution, to prevent ballot-box stuffing, the experimenters also eliminated answers where more than one response came a single I.P. address.

In principle, you could imagine that people’s answers to these questions might be logically independent. One could be a conspiracy theorist about Coca-Cola without having any particular views about climate change, or vice versa. And indeed, some subjects really did believe in climate change even as they doubted the intentions of the sugar-water company from Atlanta, and vice versa.

But, over all, the trends were clear. The more people believed in free-market ideology, the less they believed in climate science; the more they accepted science in general, the more they accepted the conclusions of climate science; and the more likely they were to be conspiracy theorists, the less likely they were to believe in climate science.

These results fit in with a longer literature on what has come to be known as “motivated reasoning.” Other things being equal, people tend to believe what they want to believe, and to disbelieve new information that might challenge them. The classic study for this came in the nineteen-sixties, shortly after the first Surgeon General’s report on smoking and lung cancer, which suggested that smoking appeared to cause lung cancer. A careful survey revealed that (surprise!) smokers were less persuaded than nonsmokers were. Nonsmokers believed what the Surgeon General had to say. Smokers heaped on the counterarguments: “many smokers live a long time” (true, but ignores the statistical evidence), “lots of things are hazardous” (a red herring), ”smoking is better than being a nervous wreck,” and so forth, piling red herrings on top of unsupported assumptions. Other research has shown a polarization effect: bring a bunch of climate change doubters into a room together, and they will leave the room even more skeptical than before, more confident and more extreme in the their views.

There may be some evolutionary advantage to having minds that reason in this way, bobbing and weaving and often avoiding the truth, but elsewhere, in my book “Kluge: The Haphazard Evolution of the Human Mind,” I have speculated that it is more bug than feature—a neural glitch of how our memories are retrieved (mainly by finding matches to retrieval queries, which leads to confirmation bias, rather than through more systematic searches that might reveal disconfirming evidence that could potentially challenge one’s beliefs). A parallel phenomenon can contaminate our ability to listen to others; we tend to dismiss that which challenges our beliefs, while accepting confirming evidence. Cass Sunstein, of “Nudge” fame, has an interesting new technical paper on this.

Given that we live in a country in which the theory of evolution—one of the most powerful theories in all of science—is routinely dismissed, and one in which climate-change experts have struggled for years to persuade the public that there is a clear and present danger despite reams of data supporting them, serious investigations into the logic of crowds in real-world situations may represent an important step forward in understanding how to reason with less-than-reasonable masses.

Photograph of Buzz Aldrin saluting the American flag during the Apollo 11 moon landing, courtesy of the NASA History Office and the NASA J.S.C. Media Services Center.

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A deep breath a day keeps the psychiatrist away – The Economist

FRIEDRICH NIETZSCHE’S widely cited maxim—“that which does not kill him makes him stronger”—is often taken as truth. Yet as sensible as it might seem, the saying has rarely been tested. Psychologists have little idea whether unpleasant experiences really do increase resilience. A study just published in Psychological Science suggests they do exactly the opposite.

In 1995 David Almeida, a psychologist at Pennsylvania State University, began an experiment involving 1,483 people. He asked them to take two tests. The first involved reporting, on a scale of one to five (where one was “none of the time” and five was “all of the time”), how often during the previous 30 days they had felt worthless, hopeless, nervous, restless or fidgety; how much of the time everything felt like an effort; and how often they were so sad that they felt nothing could cheer them up.

REPEAT: BMO Nesbitt Burns’ Psychology of Taxes Study: Canadians File Their … – Marketwire (press release)

- Civic pride: 52 per cent report that they file because it is “the right thing to do”

TORONTO, ONTARIO–(Marketwired – April 12, 2013) - With Canadians in the midst of preparing their 2012 personal income tax returns to meet the April 30^th deadline, BMO Nesbitt Burns today released its Psychology of Taxes Study which examines what motivates Canadians to file their income tax return.

According to the study, of the 94 per cent of Canadians who file their taxes each year, more than half (52 per cent) say they file them because it is “the right thing to do”.

“The fact that more than half of Canadians think that preparing and paying their taxes is the right thing to do says a lot about us as a nation,” said John Waters, Vice President, Head of Tax & Estate Planning, Wealth Planning Group, BMO Nesbitt Burns. “Taxes fund critical government programs such as healthcare and education. The study findings suggest that Canadians are keen on doing their civic duty as citizens every tax season.”

The study highlighted other reasons why Canadians regularly file their taxes, including:

• They expect a refund (28 per cent)
• It gets too complicated by not filing annually (22 per cent)
• Fear of getting audited (11 per cent)

Why not file regularly?

The study also examined the reasons why Canadians do not file their income tax return regularly:

• One-quarter (24 per cent) report they are too busy
• Twenty per cent say they do not know how to file their taxes
• Seventeen per cent feel they do not make enough money to warrant filing taxes

Mr. Waters stressed that Canadians who find tax preparation daunting and/or cannot find the time to file should consult with a tax professional for help in order to meet the deadline and avoid the possibility of incurring interest or penalties on any tax owing.

“If you owe money to the government, be sure to pay it promptly to avoid penalties or problems down the road,” he added. “Conversely, if you are expecting a refund, the sooner you file the sooner you will get your refund which could be used to pay down debt or add to your savings.”

For more information on BMO Nesbitt Burns, visit www.bmo.com/nesbittburns.

Get the latest BMO press releases via Twitter by following @BMOmedia.

The online survey was conducted with a sample of 1,002 Canadians between March 15-19, 2013. The margin of error for a probability sample of this size is +/- 3.1%, 19 times out of 20.

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Manipulating Emotion through Technology – PsychCentral.com (blog)

In the information age, personalization and customization are remarkable themes in technology, goods, and services. There is no one brand of toothpaste, or one kind of refrigerator — there are hundreds of each. There is no one kind of phone — there are hundreds of them, each able to be tailored with cases, covers, backgrounds, and apps.

And now, there are even designer babies: Parents are able to choose their children’s hair and eye color (though according to Wired, the Los Angeles clinic offering these services was recently shut down amid public outcry).

The potential for humans to modulate their emotions via technology is just as radical.

To an extent, we do this already with psychiatric medication. Many people are tempted to view those who use these drugs — even under the guidance of mental health professionals — as some kind of “cheating,” as a way of not truly dealing with the emotions themselves. Perhaps this is the case for some. It is, however, relatively clear that this tendency of yearning to gain control over our emotional experience did not spring forth at the advent of Prozac.

It might be said that nearly all of our choices are molded by how we feel now, how we have felt before, and how we want to feel in the future. If we have burned ourselves on the stove, we run for cold water. If we have been hurt in a romantic relationship before, we may take precautions in our involvement next time. If we have felt acceptance and excitement at a new job, we may throw ourselves into our work.

In the future, might it be possible to feel however we want, whenever we want?

Biotechnology, nanotechnology, and neurology at least point to the possibility of this being the case. In fact, initial “tinkering” with emotion is nearly 60 years old. In 1954, Peter Milner and James Olds implanted an electrode into the pleasure center of rats’ brains. Hooking the electrode up to a “pleasure button,” the scientists found that the rats would repeatedly press the button as much as possible — giving up food, water, and sex until they eventually died, frantically pursuing direct and intense pleasure.

Even given the avoidance of these very obvious dangers of diminishing returns on brain chemicals, tinkering with humans’ affective experience is a very slippery slope. Having an ability to feel “better,” or more energetic seems like a good idea for increasing our productivity. If we can overcome a common cold or a troubling situation at home with a kind of harmless emotional boost, is this wrong in itself?

The danger is not just negative side effects to the brain itself (which we might become smart enough to overcome), but a more insidious dependence on this boost. If we disregard food and sex for this boost, we may end up like the aforementioned rats.

Haven’t we all wished to control our sleeping patterns? Some people wish to overcome sleep altogether, while nearly all of us wish we could go to sleep or wake up on command. An implant that allows us to shut off and turn on consciousness as we please could seem like an initially harmless enhancement. Would it not just be one tiny step further to be able to control our feelings of hunger, or our sense of time (being able to fast-forward through a particularly boring wait in the bank line, or high school reunion)? This too might prove treacherous.

With the continual advancements in science, it seems as though psychology will eventually converge with, and help guide, other developing fields.

Technological progress alone — even with a much deeper understanding of neurology — is not complete without an understanding of the mind, its balance, its function, and the upkeep of its well-being that psychology can contribute. Mental health professionals someday may find themselves not only treating and helping individuals — or even striving for changes in policy — but as a guiding force and contributor to the enhancement of human experience.

Dan Faggella is a URI psychology graduate with a Master’s degree in applied positive psychology from the University of Pennsylvania. He interviews experts and writes about the future of consciousness at www.SentientPotential.com.

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    Last reviewed: By John M. Grohol, Psy.D. on 10 Apr 2013
    Published on PsychCentral.com. All rights reserved.

APA Reference

Faggella, D. (2013). Manipulating Emotion through Technology. Psych Central.
Retrieved on April 11, 2013, from http://psychcentral.com/blog/archives/2013/04/10/manipulating-emotion-through-technology/

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7 Mistaken Beliefs About Money – PsychCentral.com (blog)

Our attitudes about money are formed in childhood, according to Maggie Baker, Ph.D, a psychologist who deals with relationship, money and wealth issues and is author of Crazy About Money: How Emotions Confuse Our Money Choices and What To Do About It.

And it’s these attitudes that shape how we use money today. Unfortunately, we usually don’t know it. People “can be very rational about money and irrational about their behavior.”

For instance, you assume you’re careful and conservative with your cash. You might even know all the right things to do. But once you start recording how much you spend, you begin to see patterns that suggest your behavior isn’t reflecting those assumptions.

We also might hold onto erroneous stories we’ve picked up over the years. Here are seven mistaken beliefs to relinquish.

1. Mistaken belief: Money makes you happy.

“It’s not money that makes you happy,” according to Kathleen Gurney, Ph.D, CEO of Financial Psychology Corp. and author of Your Money Personality: What It Is and How You Can Profit from It. It’s how you use it. “If you don’t know how you want to use it as a vehicle to create happiness, it will be used indiscriminately and never achieve what you value most.”

Consider your personal objectives, goals and aspirations, she said. Don’t be swayed by how others use their money, either. “The path to achieving a greater sense of happiness lies inside and not by following what others may do with their money.”

2. Mistaken belief: Money is a scorecard.

Some people believe “if I make more money, I can be competitive and win the race,” Baker said. When money is the top priority for a person, and they lose it – because of a layoff, for instance – their self-worth shrinks. (“They mix up net worth with self-worth.”) They suffer significantly because money is the only thing that matters, instead of another person who places greater value in family and is passionate about other things, she said.

3. Mistaken belief: Someone will take care of me.

Many women commonly believe that a man will provide for them, Baker said. (In one of her workshops, women in their 50s still held onto this belief, even though they had zero evidence of this in their lives.) A similar belief is that God will provide everything you need, she said.

Placing the responsibility outside yourself can mean you don’t pay attention to your money or worry about managing it. And such avoidance can prompt money problems.

4. Mistaken belief: There is never enough money.

According to Gurney, “this is a common mental mistake and rationalization for not dealing with the truth of ‘what is’ versus ‘what we would like it to be.’” In fact, people tend to go into debt trying to reach this point of enough, she said.

The first step to living within your means is to focus on what’s most critical, such as survival and security, she said. Then learn how to add to your money for the extras you want. (“…[E]arn it through smart money management and not through delaying the transaction through debt.”

5. Mistaken belief: These people must be onto something, so I should do the same.

“We hear of and watch others making certain financial choices and we start feeling like ‘they must be onto something’ and talk ourselves into following suit,” Gurney said. She used buying real estate as an example. A few years ago, this became a key trend, and many people bought properties they couldn’t afford.

Another example, she said, is “pulling retirement money out of more conservative investments to join in the frenzy to ride the stock climb only to find out that they have missed the climb.”

We can overcome this bias by “sticking to our original strategy and solutions that made sense for our particular money personalities, goals and financial situations.” Also, remember that the media provides “expert entertainment,” so it’s often tough to distinguish between what’s truly prudent – and best for you – and simply popular, she said.

6. Mistaken belief: You can get great advice from financial gurus.

While you can learn some helpful information, be wary of one-size-fits-all financial tips. “Everybody’s situation is unique,” Baker said. Many factors, including your goals, age and risk tolerance, have to be considered. Baker wishes that the media conveyed the importance of working with a financial expert. Just like you’d seek out an expert who specializes in an illness you have, you should do the same with a financial advisor.

When searching for an advisor, you can ask friends, Baker said, “but be leery.” (Baker actually ended up experiencing her biggest financial loss after receiving a recommendation from a friend.) If you do turn to friends, ask them how much money, on average, the advisor has made for them, she said.

Baker suggested visiting these sites for more information: FINRA (Financial Industry Regulatory Authority), the American College of Financial Services and the Financial Therapy Association.

When interviewing potential advisors, she suggested asking these questions:

• Who is your ideal client? For instance, advice to a 30-year-old will be very different than to a 70-year-old, she said. You want to find an advisor who helps people with your net worth and who will know which investments are most suitable for you, she said.
• How much do you charge for your services? In a typical year, how much would I spend on your services? Do you make a commission from trading? It’s very important to see if the advisor is upfront about how much they charge and how they’re paid. According to Baker, some advisors get paid a flat fee per hour, while others get paid a percentage. “The more they make for you, the more they make [for themselves].”
• Are you available anytime to answer my questions?
• Do you subscribe to suitability or fiduciary standards? Suitability is a lower standard of responsibility. Fiduciary responsibility is when “you have an ethical responsibility to act in the best interest of your client,” Baker said. Let’s say an advisor’s company bought too much Coco-Cola stock, and they need to sell it off. This might be suitable for you, but it might not be in your best interest. (Here’s more information on the distinction.)

Consider if you trust or could trust this advisor. You might want to pick an advisor from an independent firm because they won’t need to push company stocks, she said.

7. Mistaken belief: It doesn’t take much effort to manage money effectively.

Managing money actually “demands real commitment and attention to detail,” Baker said. “It involves sitting down and looking at all the money facts of your life, [such as] your bills, spending habits and goals.”

If you’re married, sit down with your spouse and get their ideas. “It’s a big mistake for one person in the family to do all of the money without consultation from the other.” (If one person is in control while the other is oblivious, this leads to relationship issues, she said.)

“Pay a little attention to [your finances] every day.” For instance, review your expenditures, open your mail and check your bills, she said. Use programs like QuickBooks to get a clear understanding of how much you’re spending and make adjustments as needed.

While money is a taboo topic, it’s crucial to discuss it with your family, Baker said. “Don’t be afraid to talk about money, or to ask for help from a financial therapist, your accountant or even a good friend.” If your friend is struggling with the same issues, you can work through them together, she said.

Margarita Tartakovsky, M.S. is an Associate Editor at Psych Central and blogs regularly about eating and self-image issues on her own blog, Weightless.

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    Last reviewed: By John M. Grohol, Psy.D. on 5 Apr 2013
    Published on PsychCentral.com. All rights reserved.

APA Reference

Tartakovsky, M. (2013). 7 Mistaken Beliefs About Money. Psych Central.
Retrieved on April 10, 2013, from http://psychcentral.com/blog/archives/2013/04/09/7-mistaken-beliefs-about-money/

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