Abstract notions of wisdom are all well and good, but what to do with money is an intensely practical topic. ‘Wisdom,’ wrote Matthieu Ricard, ‘is precisely that which allows us to distinguish the thoughts and deeds that contribute to authentic happiness from those that destroy it.’
Of vastly greater import than any actual money we may inherit from our parents are their money stories. Not least because we inherit them at a time when we have zero capacity to challenge them, and zero money to prove that they are probably bollocks. This can set us up for some pretty tragic life choices when we do.
Research suggests that people routinely overestimate the emotional impact of negative events ranging from professional failures and romantic breakups to electoral losses, sports defeats, and medical setbacks. One of the reasons for this is that people do not realize how readily they will rationalize negative outcomes once they occur [...] people are less likely than they realize to blame themselves for their negative outcomes.