Money is an important factor in people's lives, and there is a lot of research on the psychology behind it.
Every day, we make hundreds of small decisions that are unknowingly influenced by the psychology of money. An example of mine is Security and Status Trends. Of course, I lean towards status. When I feel successful in some way, I'm more likely to like a designer handbag or luxury car, and more likely to find a way to justify a larger purchase.
When money is related to a person's status, she uses it to measure success. The amount of money they have can affect the type of home they live in, the activities they participate in, and their ability to have the vacation of their dreams. (More on this motivation later.) Our contact details are all different. We all have unique thoughts and emotions when we hear the word money. Understanding the psychology of money will help us become more aware of these thoughts, emotions, and behaviors.
There are three important things we need to understand about the psychology behind our relationships with money: The most important driver of anything related to money is the stories people tell about themselves and their preferences for goods and services. These things tend not to sit still. They vary by culture and generation. They always change.
One area of psychology that is particularly relevant to money is its ability to give control over your time.
The Psychology of Money impressed me for three reasons: "Money's greatest intrinsic value -- and I can't stress it enough -- is that it gives you control over your time."
"People want wealth to signal to others that they deserve to be liked and admired. While not mentioned in the book, I think it's a common cause of many relationship squabbles. About what constitutes an investment in emotional well-being versus pure financial stupidity, different opinions.
In this book, with only 19 short stories, the author examines the many perceptions people have about money and sheds light on the most important emotional features in the psychology of money. In the real world, economic decisions are not... "One of my deepest investing beliefs is that there is little correlation between investment spending and investment returns.
Money can have a huge impact on people's happiness and spiritual well-being.
It pays to think of money as something that has a complicated relationship with you. Your money (and your personal finances) is not a solid entity, but a complex of data points, challenges and opportunities around which you interact and feel. The money decisions you make affect your finances, and those effects in turn affect how you feel and behave in the future. It's a lifelong relationship.
First, wealth is related to your savings rate, not your income and investments. Wealth is accumulated money. You have to save money for this. Second, the value of wealth is related to your needs. It's much easier to use money more efficiently than to find new sources of funding. Third, above a certain income level, you need exactly what is below your ego.
Awareness of the emotions tied to money is important because without it, those emotions will override rational thought and influence your behavior. Once you have the basic things that make you comfortable, everything else is a want, and often displays more money than actually having money.
© 2022 Patel Vatsal