Money2 understands that there are two aspects to money - the logical side and the illogical, or emotional side. You cannot ignore one without affecting the other. The logical side says that you need to drive a sensible car and save for the future, while the emotional side tells you to buy a convertible because, after all, there are just so many summers left and you look good. However, if you are too logical and calculating with your assets, you may never really enjoy what your money can do for you and your family. After all, what good is dying with a sizable estate when you have deprived yourself and your family of great experiences throughout your life? What price can be put upon the look on a child or grandchild's face when they are presented with a great gift or a wonderful vacation?

The problem with money and emotion is that it can get us into trouble with our investments. If you think you are immune to making emotional decisions with regard to your investments, just take a look at history. The origins of the UK South Sea Bubble date from 1698, when the government of Great Britain was bankrupt and the East India Company lent the government some £2m at a rate of 8% (the standard rate for government borrowing was 14%) in return for an extension of trading privileges. The South Sea Company was established in 1711 to exploit a monopoly of British trade with South America and the Pacific Islands, expected to be lucrative once war with Spain finished. Speculation in the stock of the South Sea Company started soon afterward. In January 1720 the price of a share of South Sea stock was £128, climbing to £1,050 in June before collapse in September, an event that ruined many speculators and financial institutions. Sir Isaac Newton sold his £7,000 of stock for a 100% profit but reentered the market at the top, losing £20,000 and lamenting "I can calculate the motions of the heavenly bodies but not the madness of people." Sir Isaac Newton was not feeble-minded, possessing an IQ estimated at 168 (99.9997 percentile).