Psychology of money: Emotion and money

The most important emotions in relation to money are fear, guilt, shame, and envy.

• Common fears include the fear of not having enough, the fear of looking stupid, the fear of provoking envy, and the fear of being exposed or humiliated.
• You might feel guilty because you have more than your friends, or you haven’t been particularly charitable, or you’ve had money come too easily.
• Shame is one of the most common and powerful emotions associated with money and personal finance. It is a prime reason people avoid doing what they know they should. It's natural to want to avoid exposure in relation to something you're ashamed about.