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The psychology behind money

The psychology behind money

Money is not a fixed entity. It is a complex of data points, challenges, and opportunities you encounter and have feelings about. Your decisions about money affect your emotions and behavior.

There are three factors you need to know about the psychology behind your relationship with money:

  • Emotion have a big role in your relationship with money.
  • Anxiety and avoidance create a vicious cycle in relation to money.
  • Psychologically, family and childhood will continue to influence you when you make money decisions.

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Harnessing money emotions

Emotions can be useful. They tell you what matters to you.

Mild anxiety is motivating for example. Harness your emotions to attend to what you need to face.

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Emotion and money

The most important emotions about money to become aware of are fear, guilt, and shame. Without awareness, these emotions will interfere with your rational thinking.

  • Common fears include fear of having too little money, fear of looking foolish, fear o...

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Family and childhood influences of your finances

All families have their own psychology of money: what they can talk about, who should be in control, how important money is.

You may have experienced subtle pressures to correct the injustices perpetrated or suffered by previous generations. You may feel internal pressure ...

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How mental health influences your finances

Mental health problems can have a significant effect on your finances.

  • Excessive use of alcohol leads to poor judgment and inattentiveness to finances.
  • Depression can cause a loss of employment. People with depression also lack energy and a ...

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IDEAS CURATED BY

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"I always say, 'People first, then money, then things.'" ~ Suze Orman

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Venting is not the same as complaining

Venting is not the same as complaining

  • Complaining is characterised by whining about the same issues while blaming external factors for your emotions. It tends to be chronic.
  • Venting is a momentary release of emotion and frustration. After blowing off some steam, you c...

Emotion and money

The most important emotions about money to become aware of are fear, guilt, and shame. Without awareness, these emotions will interfere with your rational thinking.

  • Common fears include fear of having too little money, fear of looking foolish, fear o...

The feelings economy

People make decisions for emotional reasons, and justify them with rational ones.

So if you want to influence a group of people, take time to identify the emotion that matters most to them, and then create an image that will evoke that emotion. 

Add just enough logic to help...

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