Economics of Emotions

Emotions are an asset. You need to invest them correctly, for them to grow and reap dividends in the long run. There are some that give quick gratification like speeding, doing dope, lust… And then there are others which take their share of time, like family, romance, and jobs. But, just like all investment plans, the ones that yield you quick results often come with some fine prints at the bottom of the sheet. Well, bottom line- you need to manage your assets correctly and wisely.

One thing about investment that any self-respecting broker would tell you is to never put all your money at the same place. Mix the short term with the long term. The extravagant would say, “It’s all push and pull baby … it’s all push and pull…” Minimize efforts, maximize results. It’s all so fancy but we all follow it obediently when it comes to our money.

My question is What about our Emotions? Shouldn’t we protect them from Market risks and read the offer document carefully? Why is it that most of us tend to invest all of our emotions on just one individual? Isn’t it foolish to have such unrealistic high hopes? After all, even the most consistent performers tend to hit rock bottom.

We are so careful with our money. Saving it for the future. Using it sparsely. Investing in good products and services for the long run. Why is it that we take our own emotions, time and existence so much for granted? If it’s alright to bail out and sell stocks of a bad investment, why is it not alright to just let go of a bad relationship?

Mean as it may sound, why not just invest your emotions on the right people or objects of your affection? There are some people who are funny, there are some who “get” you, there are some who offer you help, there are some who offer you a tease… and boy, you like that! It’s foolish and ill-advised to expect the funny guy to be the rock you can lean on. He never signed up for it. The irony is that you expect an apple tree to bear mangoes too and then curse it for not being versatile enough. How unfortunate! Only if you had read the Offer Document carefully…

You expect your child to be good at sports and good at academics and good at extra-curricular activities and science projects and chess clubs and your hope for the future… You expect your wife to be your soul mate, the mother of your children, the head chef and chief accountant of the house, the ideal daughter-in-law… You greedy little thing- you so want it all. Everything under one roof. The package deal. And then you say you are disappointed. You have no right to say that you are disappointed!

Often it’s said we must not objectify people, or treat them like assets… I guess, it’s about time we did because we are materialistic, and we are greedy, and we like to reap the benefits of our investments.

I say, aim small, miss small. Beware of scamsters. Don’t deny your intuitions. Sell the shares that let you down. Work on the ones that make it for you. Don’t be afraid to take help if you think you don’t understand the economics of it. Eventually, you will generate high rates of interest from different avenues. And maybe, just maybe, you will find yourself a nice retirement plan.

Cheers!

Ankit Shukla