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How reframing your emotions and changing your daily behavior can help you save money 🤑

BIGTHINK

How to make healthy financial choices every day, according to a financial psychologist

How to make healthy financial choices every day, according to a financial psychologist

bigthink.com

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Harness The Power Of Emotions

There is a psychological connection between your emotions and your spending habits.

People live in two modes:

  • Reactionary mode involves spending your money in reaction to the days events.
  • Intention mode involves reframin...

At one time, emotional-sensitivity was believed to be a weakness.

However, new work into emotional sensitivity reveals that emotionally sensitive people aren’t just overly-emotional, ‘touchy’ or ‘hyper-sensitive’.

Emotions Drive Your Financial Habits

Dr. Tracy Thomas, a financial psychologist who helps highly driven, emotionally sensitive people harness their emotional strength to live an elevated life, shares her tips for harnessing the power of emotion and intent to create a healthy, financially stable life.

Reframe and harness the power of your emotional decision-making process to create a healthier, more stable financial life.

Feelings Deeply Affect Financial Habits

There is a psychological connection between your emotions and your spending habits.

As human beings, our emotions drive most of everything we do — and the choices we make with our money are deeply affected by how we interact and react to things th...

Reactionary Spending

Humans predominatly live in reaction mode.

When we’re in a reaction, we tend to create chaos. We aren’t able to harness our emotional energy into creating positive investments and outcomes.

Living in a state of reactivity means that we’re often simply reactin...

Intentional Spending

Acting with intention when it comes to your financial life doesn’t mean removing all emotion from the situation at hand.

In fact, you are just redirecting those emotions.

Dr Thomas states in order to act financially with intention, consider w...

Reframe what it means to “save money” into something that is more positive by placing emotional meaning in your investments.

Change How You Perceive Your Finances

Most people are reactive by nature.

We react to our immediate emotions, needs and desires – often putting our long-term goals at risk.

The first step in changing the way you interact with money is recognizing that there are emotions...

Monitor Your Behaviour

Am I going to be intentional or reactive today?

A big part of this change, Dr. Thomas says, is monitoring your daily behavior and really taking note of when you are reactive and when you are intentional.

From there, you will be able to id...

Question Yourself Before You Spend

  1. Is this an intention? If so, what is my intent with this purchase?
  2. Is this a reaction? If so, is this a valid reactionary expense or something I can avoid?
  3. How will this purchase (or lack of purchase) bring me closer to my future goal...

Money Motivation

Thinking about money in terms of “savings” can feel restricting and often unmotivating.

However, thinking about saving money in terms of “motivation” for your future goals (whether that be a house, a car, a trip, etc) can help you reframe what it m...

Add Meaning To Investments

If you are currently invested in a home in which you want to do major renovations, that can be a financial motivator.

Saving money to later spend on renovations, will increase the value of your home.

If you are currently investing in a trip ...

Your savings goals are really your outcomes for your life.

It’s about creating something you really want.

If you spend your life in a reactive process, savings tends to lack the powerful dr...

Think Deep

Impulsive, emotional purchases are key signs of bad spending habits. Pull yourself out of that reactionary spending mode and maintain emotional intelligence when it comes to your spending habits.

Completely separating your emotions from your finan...

Final Pointer

Thinking about your finances as a powerful and emotional driving force that will create a better life for yourself and the things that are important to you, your business and your family, can make things more cognitively clear when it comes to making day-to-day financial...

“The budget is not just a collection of numbers, but an expression of our values and aspirations.”

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