A newly-released book, Money Anxiety,explains our financial behavior during good and bad economic times, and shows how we alternate between our instinctive and rational financial behavior.  The Money Anxiety book defines six distinctive behavioral patterns, or behavioralogy, associated with our savings and spending habits during varying economic conditions. 

During tough economic times, which we experienced in the last recession of 2007 to 2009, our tendency to accumulate money in bank accounts stemmed from our instinctive reaction to looming danger, just as our ancestors hoarded food and wood when they faced a risk to their survival.  This financial behavior, defined in chapter five of the Money Anxiety book as “Mattress Money”, is the reason bank deposits accelerated during the last recession, and reached a record high of $10 trillion despite meagre interest rates.  Once the economy starts improving, our financial decisions gradually became less instinctive and more rational.

Our spending habits also alternate between instinct and rational according to economic conditions.  During tough economic times, we tend to instinctively reduce large expenses and spend only on necessities such as food closing and personal care.  This behavioral pattern, defined in chapter six of the Money Anxiety book as “Durable Diet” shows how In the first year of the last recession, December 2007 to December 2008, automobile sales in the U.S. decreased by 29 percent — from $68.2 billion to $48.3 billion.  Once the economy started showing signs of slight improvement, our financial decisions became less instinctive, and automobile sales started increasing.

The Money anxiety book also explains why and how our financial decisions alternate between instincts and rational based on the level of financial anxiety.  The book introduces a newly-developed segmentation method called Behavioralogy, which defines the financial behavior of consumers during various levels of financial anxiety.  Behavioralogy identified six types of financial orientations: Mattress Money, Durable Diet, Power Play, Tiny Treats, Rate Race and Castle Craze. 

The Money Anxiety book is available in paperback and eBook formats in all major online booksellers like Amazon, Barnes and Noble, Google Play and iTunes store.  The book is highly beneficial to business and financial people by helping them plan and price their products and services based on anticipated consumer demand during varying economic conditions.



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