Many people believe that the way that we react to our finances can have specific ties to both money and psychology. You can look at your financial situation several different ways, No single way can be offered as a blueprint. Money offers a complicated relationship than any person wants to accept. However, there are some places that you can see the connection between money and psychology. It is speculated that our own sabotaging can cause an individual’s financial situation.
Biases
Biases are those opinions that we create based on how we view the world. From the beginning of our lives, we are around individuals that help to shape our opinions of individuals and situations. Our experiences and our environment are another thing that can add to the development of the biases we will have.
Biases can sometimes be the driving factor that is behind our decisions, including those financial ones. Many times friends can help us to convince us to make financial decisions even if they are not the best for us.
The opposite of that situation is the status quo. When a person gets into a routine and does not want to change their financial habits, even if changing is better just because you are used to it this one way.
It is important that in this situation money and psychology are mixed together. The more informed that we are, regarding financial situations can help us to not depend on your psychological biases.
Beliefs
The belief system that a person has often stems from the beginning of their life just as biases did. Beliefs are also influences by the environment we are in as well as the actions of those around us. It is important to know where our beliefs come from.
If money equals stress then it might have come from when our parents felt stress over their financial situations. Those people in our lives that helped shape our beliefs also are the people that we took our financial guidance from.
Our core beliefs help us to make decisions everyday that are surrounding money. These beliefs will affect how we make our money decisions. One thing to remember is that avoidance of situations can cause a person to become in debt. Debt can cause credit problems, calls from collectors, and a continually failing financial outlook.
These situations either positive or negative have helped to shape our way of handling money and psychology.
Money is only Money
The idea that money is only money is not the way that most people live. It is not something that we use to exchange for goods and services. It is the only way that we are able to gain any of the things that we need like food, shelter, and even water.
As we get older it isn’t only worth the exchange for goods, but it is also something that we intertwine into the core person that we are. It can define our success, status, and even our self worth. Since it is so intertwined into our being money problems are not just problems, but they are a much deeper situation.
Financial decisions can often be undermined by the feelings that we have control or no control over them. It is often complicated to try to separate a person’s money from a person’s worth. Money is not something that has to define you, it can be important to show that you are you, and that you do not have to keep up with everyone else.
Change
There are consequences for not following through with change. You can see this with most resolutions or other wishes you make. We desire them so greatly, but do not always know the reasons that they never work out.
So many people believe that if you cannot see a return there is no point worrying about changing. If you think about all those times that we search for pity from others regarding some situation we are in, we are looking for reasons not to change our situation. This is also true with money situations. When we feel that we are loved and supported, our financial troubles are no longer worth changing.
Same Obstacles
One thing that you will notice is that no matter whom you are when it comes to money and psychology everyone is similar. It does not matter if you earn a lot of money, or only a small amount.
Those who make large amounts of money are not immune to the financial troubles that those who make less money have. Everyone can be in debt, have a home in foreclosure, or even have to file for bankruptcy.
Money is not always the problem in every situation, however in almost all situations your connection with money is the problem. Money and the psychology behind our decisions are the basis for almost all financial situations.
