The cynic knows the price of everything and the value of nothing.

And that's because it helps put your decisions in context. Costs and benefits are framed in terms of what is most important to you at the time of the decision.Every time we make a decision involving mutually exclusive alternatives, we will always be subject to this thing called “opportunity cost“.

Opportunity cost can help you make better decisions

<ul><li>Imagine facing the decision of painting a wall in your room green or blue. The paint of both colors cost the same, and both look equally good. </li><li>After giving it a little thought, you realize that by painting your wall blue, you’d probably not be able to hang your favorite poster because the colors wouldn’t match. Some of the furniture you had previously picked out would also have to be given up because of the color mismatch.</li><li>A green wall, on the other hand, would suit the poster and the furniture you picked out just fine. With your knowledge of what you had to give up if you chose the blue paint, <warningtag>you decide to go for the green.</warningtag></li></ul>

Applying opportunity costs to decisions not involving money

Suppose you’ve just learned how to do your taxes. You estimate that it will take up about two hours of your time if you did it yourself. Your cousin, who happens to love doing taxes, offers to do it for you for $50, with a free tub of ice cream.If you rejected your cousin’s offer, you’d save yourself $50. But it’d cost you two hours of your time doing whatever you wanted, the actual work of doing your taxes. If you took your cousin’s offer, you'd be getting your taxes done for you. Of course, you’d have to pay her $50 — that’s the cost.Depending on how much you valued your time, and how much yo<warningtag>u valued money:</warningtag><ul><li><warningtag>If you felt that an hour of your time was worth only a dollar (and two hours of your time is worth two dollars), it would probably make sense for you to do your taxes if you felt neutral about it.</warningtag></li><li><warningtag>If you felt that an hour of your time was worth $50 on the other hand, letting your cousin do your taxes would probably make pretty good sense since you’d essentially be getting back $100 worth of time for an expense of $50.</warningtag></li></ul><warningtag>Use opportunity cost to find the monetary value of your time.</warningtag>

Opportunity cost and time

Learn to evaluate life and business choices via the lens of Opportunity Costs

problemsolving

Problem Solving

business

Business

moneyandinvestments

Money & Investments

What Is Opportunity Cost

How Opportunity Cost Can Help You Make Better Decisions

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”

<ul><li>Life is all about values and priorities. You face trade-offs. Life requires that you make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.</li><li>In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.</li><li>Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other op<warningtag>portunities.</warningtag></li></ul>

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.
In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.
Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs.
There’s an opportunity cost to even reading this, at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.
In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline.

Opportunity Cost: You Can Do Anything but Not Everything

“The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best spouse you can find that will have you. The rest of life is the same damn way.”

<ul>
<li>You live in a world where you must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.</li>
<li>Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.</li>
<li>Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.</li>
</ul>

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs

The cost of something is what you will give up to get it. This is opportunity cost.

Everything in Life Has an Opportunity Cost - Right Attitudes

Everything in Life Has an Opportunity Cost


A sunk cost refers to a cost that has already occurred and has no potential for recovery in the future. Given that sunk costs have already occurred, the cost will remain the same regardless of the outcome of a decision, and so they should not be considered in capital budgeting.It is easy to get hung up on sunk costs, especially when they are explicit costs. Explicit costs are direct payments made to others in the course of running a business, such as wages, rent, and, materials. <ul><li>Explicit costs which have already been incurred are sunk and are irrelevant to future decision-making. </li><li>Explicit cost<warningtag>s which will occur in the future, however, are relevant to business decisions as they will be direct costs to the company that could be avoided.</warningtag></li></ul>

What is a Sunk Cost? 

One trap managers should be aware of when it comes to sunk costs is the sunk cost fallacy. The Sunk Cost Fallacy describes our tendency to follow through on an endeavor if we have already invested time, effort, or money into it, whether or not the current costs outweigh the benefits. Economists tell us we should avoid falling into this trap in the decision-making process that justifies a bad decision based on previously incurred costs that no longer bear relevance to the decision at hand.

Sunk Cost Fallacy

It is important to note that while all sunk costs are fixed costs, not all fixed costs are sunk costs. Sunk costs are, by definition, those which cannot be recovered by any means. Some previously incurred costs can be sold on for their purchase price and therefore are not considered sunk.

Challenges with Sunk Costs

An Opportunity Cost is the loss of other alternatives when one option is chosen or no action is taken. Opportunity costs are unseen, not included in financial reports, and can often be forgotten about in capital budgeting. Part of the reason opportunity costs are unseen is because they consider Implicit Costs. An implicit cost is any cost that has already occurred but is not necessarily shown or reported as a separate expense. These costs are much harder to measure as they are not always quantitative. Being aware of trade-offs will allow managers to make better-educated investment decisions.

What is Opportunity Cost? 

The main challenge with opportunity costs is that they are hard to accurately calculate. Returns on investments are often estimated rather than hard-set figures. It is also not always easy to define non-monetary factors like risk, time, skills, or effort. This is not to say trade-offs should not be estimated and considered in business decision-making, but rather that it is only after a choice has been made that managers will have the hindsight to see how each investment decision is compared.

Challenges with Opportunity Cost

Meaning<ul><li>Sunk costs have already been incurred and cannot be recovered by any means</li><li>Opportunity costs represent forgone returns of alternative opportunities</li></ul>Implicit or Explicit<ul><li>Sunk costs are explicit as they are the result of actual cash flows</li><li>Opportunity costs are generally implicit as they are notional in nature and do not come in the form of cash outflow</li></ul>Estimation of Cost<ul><li>Sunk costs can be accurately estimated as they have actual purchase prices that have been incurred</li><li>Opportunity costs are harder to estimate as they are often notional and their value is more subjective.</li></ul>

The Difference between Sunk Costs and Opportunity Costs: Meaning and Estimations

Reporting<ul><li>Sunk costs have already been paid for and are reflected on balance sheets and financial statements</li><li>Opportunity costs are not shown on financial statements, though they may be included in managerial reports</li></ul>Role in Decision Making<ul><li>Sunk costs have already been incurred and are therefore no longer relevant to future business decisions</li><li>Opportunity costs are very important to future business decision-making as they represent the potential benefits a business misses out on when choosing one alternative over another.</li></ul>

The Difference between Sunk Costs and Opportunity Costs: Reporting and Role in Decision Making

Sunk Costs are explicit and appear on financial statements so it is understandable why these costs are honed in on. Opportunity Costs are implicit and unseen, so they are often overlooked.

Consider sunk costs and opportunity costs as part of your business strategy to help cut costs, make better investment decisions, and set your business up for success. Unsure what these are? Read here to learn more.

Sunk Cost Vs Opportunity Cost: What's The Difference?

Sunk Cost Vs Opportunity Cost: What’s The Difference?

<ul><li>Graduation Versus Salary</li><li>Stocks Versus Cash</li><li>Vacation Versus training</li><li>Paying off debt Versus Spending on Welfare by the government</li><li>Entrepreneurship versus steady job</li><li>Selling Stocks now and 2 months later</li><li>Investing in stocks or a higher degree</li></ul>

Top 7 Examples of Opportunity Cost

A person named X is currently working in a company and drawing some salary. X is getting an option to do the graduation for 2 years, but for that, he/she must leave his/her job. If he/she doesn’t go to graduation, the opportunity cost will be a higher degree plus the additional salary that he/she might get because of this degree. On the other hand, if he/she opts for the job, then the opportunity cost will be 2 years’ salary that has to be foregone.

Graduation Versus Salary

Let’s say you got $50,000 in your bank account, which you don’t need immediately. You can have many options with this cash. For example, you can just keep this cash, or you can invest this money in stocks. Let’s say you would have invested wisely that money in some good stocks, and after a year, 50,000 would become $60,000. On the other hand, if you keep this money idle instead of investing in cash, then your opportunity cost will be the difference between 60000 and 50000, i.e., $10,000

Stock Versus Cash

Your school has announced a vacation. You finally get a chance to go on holiday for the next 1 month. But suddenly you come to know that training is scheduled for your favorite sports which you do not want to miss. So, if you go on vacation, your opportunity cost will be missing the training session, and if you stay for training, then your opportunity cost will be enjoying the vacation.

Vacation Versus Training

A country’s government is preparing its budget. It has some surplus which can be used for paying off its debtor or it can be used for introducing some welfare schemes for its citizens such as subsidies.If it pays off its debt instead of a welfare scheme, it would be classified as an opportunity cost for its citizens.

Paying off Debt Versus Spending on Welfare by the Government

You have a steady job with a good income, but your passion is to open your own business, which requires you to leave your current job, and you have to spend a lot of money on opening a business. You have both options. If you are choosing a steady job instead of opening a new business, then your opportunity cost will be not having the work you wanted and maybe success because of the new business. If you start your business, the opportunity cost would be a steady job and a regular paycheck.

Entrepreneurship Versus Steady Job

You are having shares of a company worth $5,000. You are thinking of selling that shares now or waiting for 2 more months. Let’s say, after 2 months, shares would be worth $6,000. If you sell the shares now, then your opportunity cost would be 6000-5000= $1,000, which you could have gotten if you would have waited for 2 more months.

Selling Stocks Now and 2 Months Later

You have got $20,000 which you are thinking of either investing in shares of some company, or you can invest this money in getting a higher degree in a good university. If you invest in stocks, then your opportunity cost would be higher degrees and a higher salary because of the degree. But if you invest in a higher degree, then your opportunity cost would be the profit gained from those shares.

 Investing in Stocks or Higher Degree

Opportunity cost examples that provide an outline of the most common Opportunity Cost.

Guide to Opportunity Cost Examples. Here we discuss its definition and the top 7 examples along with detailed overview and explanations.

Opportunity Cost Examples

Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked. Understanding the potential missed opportunities when a business or individual chooses one investment over another allows for better decision-making.

What Is Opportunity Cost?

Opportunity Cost = Return on best foregone option (FO) – return on chosen option (CO)The formula for calculating an opportunity cost is simply the difference between the expected returns of each option. company is faced with the following two mutually exclusive options:

Formula and Calculation of Opportunity Cost

The key difference is that risk compares the actual performance of an investment against the projected performance of the same investment, while opportunity cost compares the actual performance of an investment against the actual performance of another investment.The key difference is that risk compares the actual performance of an investment against the projected performance of the same investment, while opportunity cost compares the actual performance of an investment against the actual performance of another investment.Still, one could consider opportunity costs when deciding between two ri<warningtag>sk profiles.</warningtag>

Opportunity Cost and Risk

Opportunity cost is used to calculate different types of company profit. <ul><li>The most common type of profit analysts are familiar with is accounting profit. Accounting profit is the net income calculation often stipulated by Generally Accepted Accounting Principles (GAAP). Only explicit, real costs are subtracted from total revenue.</li><li>Economic profit (and any other calculation above that considers opportunity cost) is strictly an internal value used for strategic decision-making. There are no regulatory bodies that govern public reporting of economic profit or opportunity cost. </li></ul>

Economic Profit and Accounting Profit

The downside of opportunity cost is it is heavily reliant on estimates and assumptions. There's no way of knowing exactly how a different course of action may have played out financially. Therefore, to determine opportunity cost, a company or investor must project the outcome and forecast the financial impact. This includes projecting sales numbers, market penetration, customer demographics, manufacturing costs, customer returns, and seasonality.

How Do You Determine Opportunity Cost?

Considering the value of opportunity costs can guide individuals and organizations to more profitable decision-making.

Opportunity cost is the potential forgone profit from a missed opportunity—the result of choosing one alternative and forgoing another.

Opportunity Cost Formula, Calculation, and What It Can Tell You

The flags of two countries hang unfurled — not by any breeze but by metal wiring — over the desolate, eerily still surface of the moon. One is the stars and stripes of the United States; the other, the crimson of China. But if you ask any official from these countries, they will tell you that these flags do not represent a property claim of any kind. They're more like extraterrestrial graffiti.But if planting a flag on the moon doesn't count as a property claim, then what does? And when you get down to it, can anyone actually own the moon? Does anyone have sovereignty over the moon?

Who Owns The Moon?

#space #universe #didyouknow The flags of two countries hang unfurled — not by any breeze but by metal wiring — over the desolate, eerily still surface of the moon. One is the stars and stripes of the United States; the other, the crimson of China. But if you ask any official from these countries, they will tell you that these flags do not represent a property claim of any kind. They're more like extraterrestrial graffiti. But if planting a flag on the moon doesn't count as a property claim, then what does? And when you get down to it, can anyone actually own the moon? Does anyone have sovereignty over the moon? And can anyone buy it? Here's we are going to find out Who owns the moon? Want to know more about other topics?… Space : https://youtube.com/playlist?list=PLO6kTsDI4xfnAISJIMWKxkPoL9qoU9Hwv General knowledge : https://youtube.com/playlist?list=PLO6kTsDI4xfn6hHfyZBGiw-atw0its-7Q Science & Technology : https://youtube.com/playlist?list=PLO6kTsDI4xfmONVgfMhMbstBLpZuyJCP2 Health : https://youtube.com/playlist?list=PLO6kTsDI4xflrlYCGE0EIyWXoBoNG81-r 🙏Requests🙏 I requested to you (My viewers) please subscribe to my channel and if you like video then please press like button.All youtubers are doing hard work in video making and your like, Share, Subscribes are fruits for our hard work. You also follow me on: - Facebook: www.facebook.com/thetechers You can visit my Website : www.knowledgevaccination.blogspot.com This video is under Fair Use: Copyright Disclaimer Under Section 107 of the Copyright Act in 1976; Allowance is made for "Fair Use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non - profit, educational or personal use tips the balance in favor of fair use. All rights and credit go directly to its rightful owners. No copyright infringement intended. Sound credit : YouTube Audio Library/Storyblocks/Pixabay Footage Credit : Storyblocks/Wikipedia/NASA/CNSA/Roscosmos/Flyingcarsandfoodpills/pixabay Thank you all of you...🙏

personaldevelopment

Personal Development

#space #universe #didyouknow
The flags of two countries hang unfurled — not by any breeze but by metal wiring — over the desolate, eerily still surface of the moon. One is the stars and stripes of the United States; the other, the crimson of China. But if you ask any official from these countries, they will tell you that these flags do not represent a property claim of any kind. They're more like extraterrestrial graffiti.
But if planting a flag on the moon doesn't count as a property claim, then what does? And when you get down to it, can anyone actually own the moon? Does anyone have sovereignty over the moon? And can anyone buy it?
Here's we are going to find out Who owns the moon?

Want to know more about other topics?… 
Space : https://youtube.com/playlist?list=PLO6kTsDI4xfnAISJIMWKxkPoL9qoU9Hwv

General knowledge : https://youtube.com/playlist?list=PLO6kTsDI4xfn6hHfyZBGiw-atw0its-7Q

Science & Technology : https://youtube.com/playlist?list=PLO6kTsDI4xfmONVgfMhMbstBLpZuyJCP2

Health : https://youtube.com/playlist?list=PLO6kTsDI4xflrlYCGE0EIyWXoBoNG81-r

🙏Requests🙏 
I requested to you (My viewers) please subscribe to my channel and if you like video then please press like button.All youtubers are doing hard work in video making and your like, Share, Subscribes are fruits for our hard work.
 
You also follow me on: - 
Facebook: www.facebook.com/thetechers
You can visit my Website : www.knowledgevaccination.blogspot.com

This video is under Fair Use: Copyright Disclaimer Under Section 107 of the Copyright Act in 1976;  Allowance is made for "Fair Use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research.  Fair use is a use permitted by copyright statute that might otherwise be infringing.  Non - profit, educational or personal use tips the balance in favor of fair use.  All rights and credit go directly to its rightful owners.  No copyright infringement intended.

Sound credit : YouTube Audio Library/Storyblocks/Pixabay
Footage Credit : Storyblocks/Wikipedia/NASA/CNSA/Roscosmos/Flyingcarsandfoodpills/pixabay

Thank you all of you...🙏

Hi Friends,
In this channel, We provide you with Facts about Latest Space, Science & Technology research and information, Research based Health-related facts, General Knowledge facts, and many more. Your Information, Our Responsibility. 
Here I research a lot to make one video and Compress it in only 1-10 minutes video to gives you an instant knowledge boost. 
So friends Subscribe to my channel and watch my videos. Also, press the Bell icon to get new video notifications. And if you like videos, don't hesitate to tell your friends to subscribe to my channel. 
Because The Knowledge is Infinite.
Thank you in advance.

Sudhir Talati

Anyone Actually Owns The Moon?

Have you ever spent money on something you knew was stupid, silly, or ill-advised? Have you ever known what you “should” do with your money, and then not done it? Do you procrastinate about important financial decisions, afraid you’ll make the wrong move? And then beat yourself up about it?Here are two pieces of good news. You’re normal. And these are issues that can be solved.We all have beliefs about money. Many of those beliefs were formed when we were young, maybe before we even knew what money really was. Sometimes those beliefs get in the way of our financial peace of mind.

Psychology of Money: Your Beliefs About Money Can Impact how you Manage it

<ul><li>Many of the attitudes we’ve internalized come from our childhood. Even when we don’t realize it, things our parents said and things we saw them do shaped our attitudes about life in general and our financial lives in particular.</li><li>Culture and religion play a role, too, teaching us additional lessons about earning, spending, saving, and giving. Everything from “the stock market is a gamble” to “donate a percentage of your income to those less fortunate” are lessons we absorbed. </li></ul>If those beliefs help us make the financial decisions that are best for us, great. But all too often they may get in the wa<warningtag>y.</warningtag>

Where Our Beliefs Come From

Chances are, your path to financial health involves several major questions. Should you invest more or pay down your mortgage? Should you save more for retirement or for your child’s dream college? The right answers aren’t about how well a given investment performs. The answers that are best for you, and only you, need to include your attitudes toward debt, your feelings about risk, and the value you place on your financial goals. How important is it to you to be debt-free? To own a home? To pay for your child’s education?

Working With A Financial Planner

Psychology of Money: how to have a better relationship with money and to make smarter financial decisions

books

Books

Understand yourself and those around you.

psychology

Psychology

The Psychology of Money

Reframe your thinking about money and work with a financial planner to achieve healthier finances.

What Does Psychology Have to do With Financial Planning? | Facet Wealth

The Psychology of Money: What Does Psychology Have to do With Financial Planning?

“Some people are born into families that encourage education; others are against it. Some are born into flourishing economies encouraging of entrepreneurship; others are born into war and destitution. I want you to be successful, and I want you to earn it. But realize that not all success is due to hard work, and not all poverty is due to laziness. Keep this in mind when judging people, including yourself.”

“Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time.”

“Spending money to show people how much money you have is the fastest way to have less money.”

“Use money to gain control over your time, because not having control of your time is such a powerful and universal drag on happiness. The ability to do what you want, when you want, with who you want, for as long as you want to, pays the highest dividend that exists in finance.”

“Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”

“Controlling your time is the highest dividend money pays.”

“Independence, to me, doesn’t mean you’ll stop working. It means you only do the work you like with people you like at the times you want for as long as you want.”

“Be nicer and less flashy. No one is impressed with your possessions as much as you are. You might think you want a fancy car or a nice watch. But what you probably want is respect and admiration. And you’re more likely to gain those things through kindness and humility than horsepower and chrome.”

“Progress happens too slowly to notice, but setbacks happen too quickly to ignore.”

“Things that have never happened before happen all the time.”

“Saving is the gap between your ego and your income.”

“Nothing is as good or as bad as it seems.”

“Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.”

“Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.”

“Using your money to buy time and options has a lifestyle benefit few luxury goods can compete with.”

“You are one person in a game with seven billion other people and infinite moving parts. The accidental impact of actions outside of your control can be more consequential than the ones you consciously take.”

“Risk is what’s left over when you think you’ve thought of everything.”

“Plan to survive reality. Future filled with unknown is everyone’s reality.”

A selection of quotes from the book The Psychology of Money by Morgan Housel

611 quotes from The Psychology of Money: ‘Some people are born into families that encourage education; others are against it. Some are born into flourish...

The Psychology of Money Quotes by Morgan Housel

The Psychology of Money Quotes

It’s worth thinking about money as something with which you have a complex relationship. Your money is not a fixed entity, but rather a complex of data points, challenges, and opportunities you circle around, interact with, and have feelings about. You make decisions about money that impact your financial situation and these impacts in turn reciprocally affect your feelings and future behaviors. And it’s a relationship that evolves over a lifetime.

Our relationship with money

Here are three key things to know about the psychology behind our personal relationships with money:<ul><li>Emotion plays a huge role.</li><li>Anxiety and avoidance create a vicious cycle.</li><li>Psychologically, you can’t entirely escape your family and your past.</li></ul>

Psychology of money: 3 key things

The most important emotions in relation to money are fear, guilt, shame, and envy. <ul><li>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.</li><li>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.</li><li>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 so<warningtag>mething you're ashamed about.</warningtag></li></ul>

Psychology of money: Emotion and money

<ul><li>I don’t have enough money.</li><li>I’ve avoided thinking about finances.</li><li>I’ve avoided doing what I’m supposed to do about finances (creating a safety net, planning for retirement, sensible budgeting).</li><li>I’m really ignorant about all of this.</li><li>I spend too much.</li><li>I buy stuff when I’m unhappy.</li></ul>When you’re filled with shame the natural tendency is to avoid facing whatever is making you uncomfortable. That avoidance itself leads to additional shame and more avoidance.

Examples of shameful feelings related to money

<ul><li>Excessive use of alcohol or other substances leads to poor judgment, inattentiveness to finances, employment jeopardy, and secretiveness.</li><li>Depression can cause careers to stall or even job disability. Depressed people are often unable to face financial responsibilities because of a lack of energy or sense of purpose.</li><li>Adults with Attention Deficit Disorder (ADD or ADHD) are usually misunderstood. They have the ability to screen out what’s tedious or mundane. Details and repetitive tasks are easily overlooked (think bills piling up, envelopes unopened). For these individuals, delegating day-to-day<warningtag> financial management is often the best course. </warningtag></li></ul>

Mental health and mental illness

What can be talked about, who should be in control, what money responsibilities are assigned to what gender, how important money is or is not.Additionally, there are always stories about money that are part of a family’s identity. Maybe a serial entrepreneur grandfather lost the family fortune, sparking excessive conservatism in subsequent generations. Or a brilliant parent was seen to have been cheated out of her proper destiny.

Every family has its own particular psychology of money

<ul><li>Emotion isn’t all bad. It tells you what you’re passionate about, and what really matters to you. It makes you feel alive.</li><li> Anxiety isn’t all bad either. Mild to moderate levels of anxiety are motivating. Harness them to tackle what you need to face and know that you will feel better when you’ve done so.</li></ul>The key is self-awareness. Much of our emotional world is unconscious. But it’s not that hard to access if you know what to look for and have a blueprint for the kinds of emotions and family stories that can influence your personal relationship with money.

How to harness money emotions

The psychology of money: understanding that no one is entirely rational when it comes to money.

Emotions and family history drive our individual relationships with money and personal finance. Learning about the influence of emotions, the impact of family stories and how to avoid avoidance helps you face financial realities and feel and be safer and calmer both psychologically and financially.

The Psychology of Money: What You Need To Know To Have A (Relatively) Fearless Financial Life

The Psychology of Money: What You Need To Know To Have A Fearless Financial Life

The psychology of money is the study of our behavior with money.Success with money isn’t about knowledge, IQ, or how good you are at math. It’s about behavior, and everyone is prone to certain behaviors over others. Once you become aware of your tendencies, you can harness the power of your own mind, your thoughts and your will—and you can literally change your life.

What Is the Psychology of Money?

Self-awareness is a valuable tool. You need to learn more about the way your mind works if you want to grow. Whether we’re talking about money or life as a whole, knowing yourself is a huge factor in creating meaningful change.Personal finance is 20% head knowledge and 80% behavior. That’s why getting out of debt relies on changing your behavior instead of throwing a bunch of numbers and formulas at you.

Why the Psychology of Money Matters

<ul><li>Spender vs. Saver:  Spenders can see so many creative possibilities when it comes to money. On the other hand, a saver’s first instinct is to not spend their money. </li><li>Nerd vs. Free Spirit: Nerds genuinely look forward to organizing their budget. Free spirits... need the nerds to help them make a realistic budget. </li><li>Safety vs. Status: People who value safety want the security that money can bring.  They need to watch out for living in fear (that keeps them from giving generously, investing in retirement, or even spending money on things they really need).</li><li>Your Family and Childhood: The way you <warningtag>heard your parents talk about money—or not talk about it—definitely influenced your attitude about it from an early age. This alone won’t define your money mindset, but it’s good to be aware of.</warningtag></li></ul>

Ways Psychology Affects Your Money

The truth is that money is just a magnifying glass—it makes you more of who you are. If you’re kind and generous, you’ll be even more kind and generous with money. If you’re rude and self-centered, you’ll be even more rude and self-centered with money. Money is simply a tool, and you get to determine what to do with it.

How the Psychology of Money Affects Your Decisions

The psychology of money is the study of our behavior with money.

The psychology of money is the study of our behavior with money. Learn how the psychology of money affects all your financial decisions.

Understanding the Psychology of Money and What It’s Costing You

Find 100+ Ideas and Facts about Money - Curated from interesting sources like Books, Podcasts & Articles - Genuine Insights from like-minded Users like You!