Being Joyful Is A Competitive Advantage
Handsome man dancing jumping on city street
My previous post, Being Sad Is Expensive: How Your Money-Mindset Matters showed how emotions play a crucial role in shaping financial behavior. One potential explanation for why this is comes from the broaden and build theory of positive emotions (BBT), which argues that positive emotions tend to allow a person to grow in such a way that they develop new skills that lead towards greater financial resources. Understanding this connection between emotions and financial resources can give entrepreneurs, business owners, and professionals a competitive advantage in wealth-building and long-term financial well-being.
But, why, exactly, are emotions connected to financial resources? What is actually happening when you move from joy to greater income and net worth?
Instead of assuming that money brings happiness, what if we assume that happiness creates wealth? The idea that money alone leads to lasting happiness has been debunked—especially considering that we live in the richest society in history, yet remain deeply dissatisfied. People quickly adapt to new financial circumstances, so while receiving money may bring temporary joy, the effect is fleeting. In fact, research shows that beyond escaping poverty, additional wealth has little impact on long-term emotional well-being.
So, asking the question again, why should our emotions impact our finances?
The BBT framework, developed by psychologist Barbara Fredrickson, argues that positive emotions broaden cognitive awareness and curiosity, leading to an expanded perspective on life and decision-making. Conversely, negative emotions narrow our focus, causing us to prioritize short-term survival over long-term success. In the realm of finance, this means that positive emotions encourage strategic long-term financial planning, while negative emotions push individuals toward short-term, reactionary spending habits.
Financial time horizon refers to how far into the future individuals consider when making financial decisions. Some people plan just a few months ahead, focusing on immediate expenses, while others think decades into the future, prioritizing long-term investments, retirement planning, and strategic capital investing. Our recent paper, The Relationship Between Emotions and Financial Time Horizon, provided evidence that emotions strongly influence financial time horizon.
In our study, 993 American adults confirmed that individuals who frequently experience positive emotions, such as joy, interest, and contentment, tend to have a longer financial time horizon. These individuals are more likely to set financial goals, create budgets, and actively save money for the future. Why? Because positive emotions expand attention spans, encourage strategic thinking, and build the psychological resilience needed for long-term planning.
For entrepreneurs and professionals, this insight is invaluable. A mindset rooted in optimism and enthusiasm leads to a broader financial outlook, making it easier to prioritize retirement contributions, reinvest profits, and build wealth over time. As a business owner, fostering an environment that promotes positivity, whether through workplace culture, networking, or personal mindset, can directly impact financial decision-making and success.
On the flip side, negative emotions, such as anxiety, anger, and sadness, were shown in our study to be associated with a shorter financial time horizon. Individuals experiencing persistent negative emotions tend to focus on immediate financial concerns, avoiding long-term planning in favor of quick fixes. This can manifest in poor financial behaviors like excessive credit card debt, minimal savings, or impulsive investment decisions.
For instance, entrepreneurs under chronic stress might make rash business investments without considering long-term profitability. Similarly, professionals feeling financial anxiety may delay saving for retirement, focusing only on immediate cash flow needs. Over time, these behaviors compound, leading to financial instability and missed wealth-building opportunities.
Understanding that emotions influence financial behavior means that controlling your emotional state can become a strategic advantage. Here's how professionals and entrepreneurs can leverage this knowledge:
For entrepreneurs and professionals, financial success isn't just about spreadsheets, budgets, and investments—it's also about emotional intelligence. Recognizing how emotions influence financial planning can help individuals build resilience, expand their financial time horizon, and ultimately achieve greater financial well-being.
The next time you make a financial decision, take a step back and assess your emotional state. Are you thinking broadly, setting long-term goals, and investing with a long time horizon? Or are you reacting to short-term stress and launching into a fight or flight behavior that leads towards poor financial health.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
37 minutes ago
- Yahoo
Joby Aviation Stock (JOBY) Takes Flight Upon Donald Trump's Executive Order
On Friday, June 6th, President Trump signed an Executive Order to 'unleash American drone dominance,' which included directing the Transportation Department to develop an Electric Vertical Takeoff and Landing (eVTOL) program to accelerate eVTOL operations in the U.S. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Aside from confirming the specter of space-age technology making its way onto American streets, as foreshadowed by content creators for generations, leading electric aircraft manufacturer Joby Aviation (JOBY) stands well-positioned to capitalize fully on the evolving opportunity. The company has been making headlines with major partnership announcements and impressive funding rounds. After analyzing recent developments and financial performance, I am bullish on the space and Joby Aviation's potential. Joby Aviation is playing a leading role in the transformation of the aviation industry through the development of electric vertical takeoff and landing (eVTOL) aircraft. The global eVTOL market was valued at approximately $760 million in 2024 and is projected to grow significantly, reaching an estimated $17.34 billion by 2035. Beyond aircraft manufacturing, Joby is building a comprehensive ecosystem that includes pilot training initiatives and proprietary dispatch software. This vertically integrated approach may offer substantial competitive advantages if executed effectively. While the company operates in a competitive landscape with peers such as Archer Aviation (ACHR) and EHang (EH), strategic partnerships—including a manufacturing collaboration with Toyota and operational agreements with Delta Air Lines—enhance its credibility. Additionally, contracts with the U.S. Department of Defense further diversify potential revenue streams and support the broader validation of its technology across both commercial and government sectors. Joby has been on a notable run lately, with shares climbing over 22% in the past month, thanks to several major announcements that have investors excited. One of the most significant catalysts came in May when Toyota made a substantial $250 million investment in the company, becoming Joby's largest shareholder in the process. Toyota's involvement brings decades of production expertise and operational know-how that could prove invaluable as Joby scales from prototype to mass production. Following that, Joby signed a memorandum of understanding with Saudi Arabia's Abdul Latif Jameel to explore a potentially massive $1 billion distribution deal. If finalized, this could represent a significant international expansion opportunity, with up to 200 Joby aircraft potentially deployed across Saudi Arabia. Perhaps most importantly for long-term prospects, Joby has been making steady progress through the complex Federal Aviation Administration certification process. The company recently advanced to the final phase of FAA type certification. It became the first electric vertical takeoff and landing (eVTOL) company to conduct routine pilot-on-board transition flights. This regulatory progress is crucial because it directly impacts when Joby can begin commercial operations and start generating meaningful revenue. The recent White House directive may be enough to help get these birds airborne even sooner. Joby's first-quarter net loss narrowed to $82 million from $95 million in the prior year, and the company beat earnings expectations by $0.07 per share. While cash burn continues, the trajectory suggests management is making progress on cost control as the company approaches its commercial launch. Further, its robust balance sheet is a key selling point. The company ended the first quarter of 2025 with $813 million in cash and short-term investments. The recent Toyota investment, combined with an additional $500 million commitment from the automaker, significantly strengthens this position. This financial cushion is particularly important given that Joby is still in the pre-revenue phase of its development. The company is projecting a cash burn of $500 million to $540 million in 2025, highlighting the significant capital requirements of introducing an entirely new form of transportation to the market. The current war chest provides roughly 1.5 years of operational runway at current spending levels. Even better, Joby carries zero debt, giving it tremendous financial flexibility as it works toward commercialization. The market opportunity, while potentially massive, remains largely theoretical. Consumer acceptance of air taxi services remains unproven, and regulatory frameworks for urban air mobility are still evolving. Yet, analysts following the company remain cautiously optimistic. Joby Aviation is rated a Moderate Buy overall, based on the most recent recommendations of seven analysts. Their 12-month average price target for JOBY stock is $8.86, representing a 4% downside from current levels over the next 12 months. However, various analysts are likely to shift their positions towards a more bullish stance once the full impact of Donald Trump's executive order is assimilated by market participants. Cantor analyst Andres Sheppard remains optimistic, recently reiterating an Overweight rating for JOBY stock with a $9 price target. He notes the company's strong liquidity and strategic partnerships with Toyota, Delta Air Lines, and the Department of Defense, which position JOBY as a leading contender in commercializing eVTOL technology. H.C. Wainwright's Amit Dayal shares a similar positive outlook, particularly following Toyota's significant $250 million investment aimed at supporting Joby's development efforts. Dayal anticipates a pivotal year in 2025 for the eVTOL industry, with milestones expected in certifications and piloted flights. The expectation is for Joby to produce 25–30 eVTOL units by the end of next year, with substantial revenue growth projected, reaching over $1 billion by 2029. Dayal also maintains a Buy rating with a $9 price target. Joby Aviation is a compelling investment opportunity in an embryonic industry poised to commercialize urban air transportation. The promise of flying cars, envisioned by countless visionaries over the past 100 years, is now becoming a reality, albeit gradually. JOBY has secured impressive partnerships, maintains a strong balance sheet, and is making meaningful progress toward commercialization. The company is poised to transition from an ambitious startup to a commercial aviation company. Key milestones to watch include progress on FAA certification, formalization of the Saudi Arabia partnership, and updates on manufacturing scale-up. The future of flight is here, and I am pretty bullish on the eVTOL space and the current market leaders, such as Joby, who are making it a reality. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Yahoo
40 minutes ago
- Yahoo
Mike Lee reinstates language to sell Utah public land in Trump tax bill
WASHINGTON — Sen. Mike Lee, R-Utah, reinstated language to make public land in Utah eligible for sale, adding the proposal back to President Donald Trump's massive tax package after it was removed by GOP leaders in the House last month. The proposal would pave the way to sell off a small percentage of Utah's public lands, as well as other Western states, to be used for affordable housing and increase revenue for conservation projects. The public land sale proposal is tucked into a larger section of energy-related provisions headed by Lee as chairman of the Senate Energy and Natural Resources Committee, which released its portion of Trump's reconciliation bill on Wednesday. 'This is President Trump's agenda: cut the Green New Scam, reduce the deficit, and unleash American energy,' Lee said in a statement. 'We're cutting billions in unused Biden-era climate slush funds, opening up energy and resource development, turning federal liabilities into taxpayer value, while making housing more affordable for hardworking American families. This is how we make government smaller, freer, and work for Americans.' The move comes after the House stripped language to sell more than 211,000 acres across Utah and Nevada, an amendment led by Utah Rep. Celeste Maloy, R-Utah, who said she drafted the provision upon request from local officials. However, the language was ultimately removed from the House version amid pushback from some Republicans as well as concerns it did not adhere to strict reconciliation rules. Under the reconciliation process, all provisions in the massive package must adhere to what is known as the 'Byrd rule,' which prohibits policies that are unrelated to budget changes or that outweigh budgetary effects. To comply with the Byrd rule, Lee made substantive changes to Maloy's amendment that would refrain from using specific maps to target land in the western states. The updated language also excludes specific acreage, instead instructing the interior secretary to sell off between just 0.5% to 0.75% of federal lands in specific states. The states listed include Utah as well as Alaska, Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Washington, and Wyoming. However, the bill carves out specific guardrails for what land can be sold, excluding at least 15 categories of protected land from the list. That means national parks, monuments, and land dedicated to wilderness reserves would not be included. Instead, GOP aides stressed it would only sell 'unused or underused federal lands adjacent to cities or metropolitan areas.' To adhere to Byrd Rule requirements that policies must contribute to deficit reduction, the provision would stipulate that the money made from land sales goes toward conservation efforts, maintenance projects, infrastructure improvements for roads and utilities, and school funding. Maloy worked with Lee to draft the updated version of the land sales to be included in the final package, arguing it was crucial to affordable housing projects in the two western states. The proposal was also backed by Trump, who campaigned on the issue throughout the 2024 election. About 63% of Utah's land is owned by the federal government, the most of any state in the country aside from Nevada. But the initial proposal was met with pushback from some Republicans who have historically opposed public land sales, such as Rep. Ryan Zinke, R-Mont., the co-chairman of the newly created Public Lands Caucus. Lee's office worked closely with Montana Sens. Steve Daines and Tim Sheehy to assuage concerns from the state delegation about public land sales. The reconciliation language exempts Montana from any sales, but much of the framework was inspired by the Montana senators' suggestions to ease concerns about lack of a public process. The provision would require the interior secretary to consult with state and local governments as well as any Indian tribes before facilitating any sort of sale, according to the bill. That way, aides noted, it created a 'public participant process.' Democrats have also expressed opposition to the proposal, including Sen. Catherine Masto Cortez, D-Nevada, who contended much of the land being sold couldn't be converted into housing anyway. 'Their reconciliation package included federal land sales…that weren't even near areas where you could actually do affordable housing,' Masto said to Interior Secretary Doug Burgum during a Senate hearing on Wednesday. The land is 'in the middle of the desert. There's no infrastructure. I don't know any builder who is going to build housing in the middle of the desert, it makes no sense.' The proposal is also likely to face pushback from some public lands organizations. More than 100 groups penned a letter to Lee and other Senate leadership earlier this week urging them not to include language that would greenlight any land sales. However, GOP aides argued the land sales would help with housing affordability crises in Western states, especially for those who live close to national parks where housing prices are expensive. The public land sales proposal is tucked into a larger section of energy-related provisions, which also includes provisions paving the way for increased lease sales in Alaska, permitting reform, repealing Biden-era clean energy policies, and more. The full section must now be approved by the Senate parliamentarian, who will determine whether the contents adhere to the Byrd Rule and can be included in the final reconciliation package.
Yahoo
40 minutes ago
- Yahoo
Opinion: America can't afford to hesitate on nuclear energy
In 1955, a small city in the American West became the first in the world to be powered entirely by nuclear energy. It marked the dawn of a new technological era — when America built boldly and led decisively. Today, as new demand strains the grid and global energy competition intensifies, the West is once again positioned to do something historic: not just power cities, but ignite a new era of American prosperity and security. In the decades that followed, the United States built more than 100 commercial nuclear reactors, most of them before 1990. It was a time of American acceleration, with some speculating that electricity could soon become 'too cheap to meter.' The rest of the world took notice. France launched a sweeping national effort to replicate that momentum. Today, nuclear provides roughly 70% of France's electricity. But then, we hesitated. A combination of regulatory overreach, shifting public sentiment and political inertia brought new development nearly to a standstill. Well-documented setbacks fueled skepticism, while permitting processes stretched into decades. Our industrial muscle atrophied as we began to treat innovation as risk rather than opportunity. Somewhere along the way, we forgot how to build. But the tide is turning. Between 2019 and 2024, American support for nuclear energy rose by 18 percentage points. A recent poll found that nearly 80% of first-time and Gen Z voters support next-generation nuclear technologies as a complement to renewables. In Utah, where I serve as governor, polling shows similarly broad support for advanced nuclear energy. That support isn't surprising. Existing nuclear plants are among the safest, cleanest and most efficient sources of power ever built. Advanced nuclear builds on this legacy, offering smaller footprints, faster deployment and even broader use cases. Utah isn't just focused on building advanced nuclear reactors, but all energy types that can help us meet our goals. Through my administration's initiative, Operation Gigawatt, we're moving to double our state's energy capacity over the next 10 years and build out our energy ecosystem to meet the needs of the future. This is a strategic imperative. We don't believe in just an 'all-of-the-above' energy strategy — we believe in a more-of-the-above strategy. If it's reliable, clean and scalable, we're building it. That's why at Utah's recent Nuclear Energy Summit, I joined Wyoming Governor Mark Gordon and Idaho Governor Brad Little in signing a tri-state MOU to pursue regional collaboration in energy policy, infrastructure development and regulatory strategy. We're also building an ecosystem to support advanced nuclear. Our new Nuclear Energy Consortium — created in partnership with state lawmakers — will bring together private industry, investors and policymakers to guide development. We're also designating energy development zones and creating policies to attract capital without raising costs for ratepayers. This is a model other states can follow. This work is urgent. AI is already driving explosive growth in computing power, with hyperscale data centers demanding round-the-clock electricity. But that's just one piece of a much larger challenge: how do we keep the lights on, keep rates affordable and build a grid resilient enough to withstand heatwaves, storms and cyber threats? Solving that challenge is essential for Utah families and businesses — today and for generations to come. Because at the core of every strong economy is reliable energy. As we reshore advanced manufacturing and electrify major sectors of our economy — from transportation to housing — the demands on our grid will only grow. The future we're building won't run on gigawatts — it will require terawatts. In May, President Trump signed four executive orders to 'usher in a nuclear renaissance.' These orders provide steps to streamline permitting, support domestic enrichment and prioritize advanced reactor deployment. The economic case is compelling, with nuclear power offering unmatched reliability and energy density. At the announcement, Jake DeWitte, CEO of advanced nuclear firm Oklo, underscored that point with a simple visual: 'A golf ball of uranium metal has enough energy content in it to power your entire life's energy needs.' That's the kind of efficiency we'll need to power the next chapter of American prosperity. But this isn't just about economics. It's also about national security. At the same White House event, General Matter CEO Scott Nolan pointed to a dangerous vulnerability: 'Right now the U.S. is completely dependent on other countries for enrichment.' He's right. Roughly 25% of the enriched uranium used in U.S. reactors today comes from Russia. That dependency is unacceptable. As we bring dozens of new advanced reactors online in the coming years, we must ensure we're not relying on adversaries to fuel them. More than just building reactors, meeting this moment demands a full-scale commitment to the nuclear supply chain, from mining and enrichment to manufacturing and waste handling. It also requires modernizing our permitting systems so that well-designed projects don't languish for years under bureaucratic delay. We've done this before. In less than three decades, America once brought more than 100 nuclear reactors online. We know how to build when we decide it matters. And if we care about energy security, economic growth and global competitiveness, we'll do it again. The American West powered the world's first nuclear city. This time, we have a chance to power something even greater: a nuclear renaissance. Utah is ready to lead. I invite utility executives, policymakers and local leaders everywhere to join us. Now is the time to build.
