Talking about emotional health had been a taboo topic until a couple of decades ago; there is a lot of misinformation and family, educational and social prejudices around this topic. However, taking emotional health into consideration is a priority in our lives, since it is scientifically proven that emotions directly influence the state of physical and social well-being.

 Remaining in an internal emotional balance improves the quality of individual and social life, it is an aspect that may go unnoticed, but of great influence and significance in our daily work. Today it is a priority to have basic knowledge about emotions, proper management.

            What is an emotion?

            Emotion is a complex combination of what you perceive, how your body reacts, and what motivates you to act. All of this produces a global psychological state that can be positive or negative, of low or high intensity and of short or long duration and that produces a gestural expression that can be identified by other people. Emotions have the function of adapting us to our environment, they are not good or bad, they are signals and information about what surrounds us and about ourselves. It is important to learn to listen to our body and emotions, through internal silence and away from auditory, visual and electronic pollution. It is vital to be aware of emotions, as well as identify them, express them and have good management of them.

 It is important to know that you can do a lot to take care of your emotional health, reduce your discomfort and increase your quality of life. Just as you do with your “physical” health by maintaining healthy habits, you can do it with your emotional health. Emotional well-being is the primary basis for maintaining a good relationship with everything that happens in our lives. The way we feel directly influences the management of money, finances and investments.

 Emotional health plays a crucial role in financial decisions according to the Behavioral Finance economic school of thought.

 This economic trend incorporates the psychological behavior of participants in financial markets into the models, considering that investors or managers are not as rational as traditional financial theory assumes. This branch of knowledge applies advances in behavioral psychological studies to economics, and more specifically to INVESTMENT. Its fundamental pillar is the denial of the full rationality of the market and investors.

Main postulates of the Behavioral Finance current:

• Investors should be considered not as rational in making financial decisions as the old traditional financial theory assumes.
• Investors do not have complete self-control when making decisions and are affected by emotional impulses.
• There are biases that influence investors’ decision making.
• Investors make cognitive errors that can lead to incorrect decisions.

Basis of the economic current: Two systems influence the decision-making of any person: Impulsive (irrational) and Reflective (rational). It determines that the investor can be influenced by emotions or impulses such as overconfidence, self-control, risk aversion or affinity when making financial decisions. These limitations can be classified into two large groups:

• Biases from heuristics
• Bias or limitations of the mental process

Effect of finances on emotional health:

 Anxiety and stress: Financial instability can cause anxiety and stress. Worrying about money, debt or lack of income affects our mental health. Implementing a savings culture is an option to reduce this state of worry. Depression: Debt and financial problems can exacerbate depression. You must have adequate planning of income and expenses. As well as a diversification of investments. Anger and anger: They can lead to decisions that damage business or business relationships.

Invest in real estate?

 Taking care of our emotional health helps us make more conscious and optimal financial decisions. According to the journalistic note titled “The price of housing skyrockets in the tourist destinations of Mexico” from the newspaper “EL ECONOMISTA” on July 10 of this year, housing in the states of Baja California Sur and Quintana Roo is They were positioned with those with the highest capital gains, observing an increase of 15.7% and 13.4% annually, respectively. The high demand for properties by tourists and national and foreign investors sustains this capital gain. Based on data from the Federal Mortgage Society, an increase in housing values ​​nationwide of 9.7% was recorded in the first quarter of 2024.

 Invest in the Mayakaan Residences real estate project located just 15 minutes from the Cancun international airport. Live off your investment in Puerto Morelos, the jewel of the Riviera Maya, a young destination but recognized for its high capital gains and sustainable growth. Learn about our business model and enjoy your property branded by the international brand Wyndham Grand.

“Invest and make decisions that strengthen your financial future”

I hope you find this information useful!