Save Money by Avoiding Financial Decisions When You're Sad

It may not come as a surprise that we spend more money when we're sad, but a recent study shows that it can inhibit other, more complicated financial decisions too.

The study suggests that feeling down makes people more likely to give up more money in the near future in exchange for significantly less today. The researchers call this phenomenon "myopic misery"—sadness causing subjects to behave short-sightedly.


Report co-author Ye Li states that sadness may cause people to seek "retail therapy:" the instant gratification of a purchase. Even at the cost of more money later.


Feeling Sad? Be Careful With Your Money | CNN Money