Emotional Finance

What do you do when you've invested your money somewhere and that stock is giving you a bad return?
You either hang in there hopin that things might get better and you will recover your losses in the future or you withdraw and invest elsewhere where you're sure u'll get better returns, at least short term.
Now relate this basic financial logic to life and you get what I call the 'emotional finance' theory. Ideas brainchild of my conversation with Raghav, my cousin.
When we make friends, form relationships we mostly expect to be able to bank on it. We actually make an emotional investment in all of our relationships subconsciously hopin that it'll pay back someday. Nah don't shake your head, u know you expect your friends to be there whenever you need them, don't you?
Investing emotionally could be closely analogous to trusting someone. My 'thought allocation' theory states that majority of our relationships are imbalanced. But sometimes this imbalance reaches a see-saw point, the point where you can term it as an obvious bad return to your emotional investment. That's when we have a choice.
Oh and for people like me, who are way too loyal or chicken there's another possible alternative... you can reduce your investment instead of withdrawing it completely, bring it down to the level of the return. Emotionally I guess this is easier said than done but sometimes we just need to do it.
Tell me have you ever made such a choice? What did you choose to do?

PS: Song I can't have enough of:


PPS: More articles that got published - A book review for The Zoya Factor by Anuja Chauhan and the best from my Penwork {according to Lena :)}, About to Begin

Comments

cm chap said…
Wonderful thought process. Yes have been in similar situations.

What I do in such situations.. Give my heart out to make the person understand and when I realize they pretend to accept / or using me I withdraw fully.
Jack said…
Vandita,

Totally true. Without even being conscious about it we make this emotional investment. And it surely hurts when returns are not upto expectations. At times total withdrawl is the only solution but most of the times it is bringing investment down to returns level. If your find time read goonjhighonlife post here on almost the same issue and see comments. Also if you can visit nehatambe in this space and read her latest post with comments.

Read The Zoya Factor and About to Begin also. First one is nice review and the poem is really touching.

Please do navigate here to read my new post. And if you find time visit o3.indiatimes too.

Take care
unforgiven said…
I have always claimed that the major reason why people get distraught on a breakup, even when they are convinced that it's for the good of both people, is simply the fear of losing an investment.

BTW, I like the name of your blog.
Jack said…
Vandita,

Sorry it is chiseledthoughts and NOT goonjhighonlife.

Take care
Jack said…
Vandita,

I rechecked. Please read both chis... and goonj.... . Also do read nehatambe.

Take care
hmm i thought i shouldnt change anything even if things did. apparently thats not the way the world works. so ive reduced my investment, big time, maybe even withdrawn it... so things seem better.
neers said…
loved the post n the idea behind the theory...but i cant help but ask "what the hell is happening??"
Meghna said…
Hey Vandy,

M yet to decide wht to do swty....still trying to decide wht choice do i have in the first plc..so d day i make my choice..u'll be the second to know..first obviously will be the person directly conected to the choice. :)

tk loads of care..
oh n since i love ur post soo much..guess wht..m gona put this post of ur's in my own blog (first time ever der's a copy paste happening..lolz) coz sumone realy needs to read dis..n der is no way i can direct him to 'ur' blog :(

maggie
Garima Sekhri said…
true...friends, relationships r investments tht we make..
i cant withdraw very easily but reducing it is possible..i hav done it and im at peace..i havnt lost the investments and yet the risks r nt giving me sleepless nights
rebel_on_loose said…
Yea I had to make a similar choice lately when a friend did a "Satyam" on me...I withdrew my entire investment in tht person since there was an absolute worry of zero return !
IncorrigibleV said…
@CM Chap
Thanks dear.
So I see you use path C and then path B if need calls. Interesting.
IncorrigibleV said…
@Jack
Glad u agree with me on this one.
I'll read Goonj, NehaTambe and Chiseledthoughts also. Lemme see if I can find em, I only know the link to Goonj.
And visiting u is sure on my list, I'm goin in order...I'll get there soon.
Thanks for being patient. :)
IncorrigibleV said…
@unforgiven
Hey welcome to my space,really well said. :)
Thanks...
IncorrigibleV said…
@Harini
Hmmm I wrote this coz even I was made to realize that thats not the way the world works.
IncorrigibleV said…
@Bonnie
nice.. as to what the hell is happening? I guess u know.
IncorrigibleV said…
@Megs
Hey first time u commented on my blog :P
Sure lemme know when u make a choice.
I know what u mean ... lets hope he reads it and gets it.
IncorrigibleV said…
@Garu
Yeah withdrawing completely is really difficult. I think path C is the one for me too, the only thing I not sure abt is whether im gonna be at peace even after reducin it.
IncorrigibleV said…
@rebel_on_loose
Ouch...well atleast its better now.
Btw welcome to my space. :)

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