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 Introduction

00:43 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 Budgeting? Try Rethinking It. 

Got the Urge to Splurge? 4 Steps to Overcome Your Overspending Habit 

How to Avoid Arguing Over Money By Sarah Newcomb

 

 

What to watch from Morningstar.

Top Retail Stocks on Sale This Holiday Season

Should You Buy Dividend Stocks in a Recession?

Retiring Soon? Make Sure to Check Your Asset Allocation

Cheap Stocks For You to Consider

 

Read what our team is writing:

Sarah Newcomb https://www.morningstar.com/authors/1951/sarah-newcomb

 

Follow us on social media.

Ivanna Hampton on Twitter: @IvannaHampton

Sarah Newcomb on Twitter: @finance_therapy

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