Emotional Intelligence is the recognition of one’s feelings and using it to guide their thoughts and actions. It involves majorly managing and guiding ones feeling to enable it adapt to various situations in order to achieve a personal goal. Relating this to money or finance, emotional intelligence is vital in helping you manage your money.
For instance, when an individual is an impulsive buyer and they find theirselves buying unplanned or un budgeted items when they feeling down , they are not emotionally intelligent but they have money. But with emotional intelligence you will be self aware and be courageous to tackle the problem instead of using a temporal impulse buying which is a short term emotional solution to solve it.
Self regulation is another skill in emotional intelligence especially for investors. I’m talking about stock and crypto investors. It’s a bumpy ride in the investment world no matter where you are putting your money. Everything doesn’t just go smooth all at ones. You have the period where your investment portfolio is all green and when they are all red. For instance, during this recent crypto dip a lot of people lost self regulation especially the new bird, I don’t blame though.
But as a self regulated investor you know that the market is highly volatile and your portfolio will fluctuate this helps you remain calm when prices go down. While remain calm you can evaluate the crypto or the company you invested on to make a sound decision based on your investing strategy. This enables you not to panic so you don’t make final decisions you will regret later.
