Never, under any circumstance, should you ever make a business decision based on emotion.
That’s not to say that we are supposed to divorce ourselves from emotion altogether—especially when we’re talking about a $600,000 house. We are fundamentally emotionally beings, after all.
There’s a difference between experiencing emotions amidst a calculated, educated decision and letting emotion make the decision for you.
When I buy that house, I’m probably going to feel excited and nervous. The next day, I might feel the fabled buyer’s remorse. Later, I might feel overwhelmed. But I will know that my decision was not based on emotion. I will know that I have studied my market, that I’ve run the numbers, and that I’ve sought advice from wise people.
I will know that I made a good investment and anytime I begin to doubt myself…the numbers will be free for perusing.
That is vastly different than thinking, “Oh my gosh, I’ve gotta’ buy a house! I’m married and I’m renting! House! Buy a house! Real estate is always a good investment! It always goes up in value! Gotta’ get a mortgage now before those rates go up and I miss out! I don’t wanna’ feel left out! FOR THE LOVE OF ALL THAT IS SACRED AND HOLY, I NEED A HOUSE!”
Phew, I’m exhausted after writing that last paragraph.
Do you see the difference?