It's in your head

Our money and our psychology

Hello, you. Every week I write a piece about something that interests me. If you’re interested, subscribe below.

I have always wondered where my behaviour with money stems from. My grandmother is quite stingy with her money. My grandfather was happy to spend money. They were complete opposites on that front. My mother and father did not have much money but tried their best. They are quite materialistic and into things, so not financially literate and live their lives in debt. I blame this on the system they grew up in and their parents. I also have family members who are quite good with money and are open to spending and saving. Therefore, as you can see, my behaviour with money can stem from a number of these factors and why I am curious to identify what type of person I am with, and around, money.

In itself money is nothing. Money is something we assign value to. A more efficient way to barter. I am currently writing a piece on what money is, but it’s the psychology of how we behave with the money I want to touch on.

Me

I think my behaviour with money relates directly to my upbringing. I like spending it, I like saving it, and I also do not like spending too much on it. I love spending money on the things and people I love and care about. I also do not tend to give or spend on people I do not care about. I hate debt, but I do not mind eating into my credit card because I know I pay it in full every month. However, the feeling of spending on my credit card gives me anxiety. That fear stems from growing up with my mom and dad, them being in debt, and me not wanting to ever be in debt. Knowing this fear does not make the anxiety go away though.

My anxiety around spending money must relate to how I do not want to end up without it. This is annoying because I am trying to live a full life, which cannot be done without money. I want financial independence. Freedom. What does that look like for me? I think financial independence will look like enough. It will allow me to do what I want when I want to. That does not have to mean I am on the beach all day every day. It could mean not working in a job I do not enjoy or living in a place I do not like. Having the freedom to move. It is when I am happy and comfortable. When I know it’s enough. It does not have to be a number in my head now, but when I have it I will know what it is. However, I do believe enough relates to my upbringing. Our domestication is so crucial to every aspect of our lives, and we must not forget it.

Over time, I will achieve my financial independence. I recently read The Psychology of Money by Morgan Housel, which helped me see things more clearly. It made me realise that it is important to recognize our behaviour with money. This will allow us to change whatever it is we need to change to achieve whatever it is we set out to achieve in our life. It is therefore vital to become aware. Aware of your decisions, your goals, and what they are influenced by. Once we recognise this, we can decide what it is we want to keep and what we do not want to.

You

Your behaviour with money differs from mine. What you do with and how you spend money differs from mine, and that’s okay. Everyone behaves with money differently because we are different people. If you want to spend all your money on whatever you want that’s fine. Nobody is crazy.

Therefore, you will know how your behavior, and the behaviour of those in your life, influence your decision-making with money. Have you considered whether seeing your mother trying to save every penny has influenced you? Have you considered how your family not speaking about money has made you afraid of discussing it? The little things impact our entire life. When we realise these things are etched into our psychology, we become aware of what activities involving money are worth being anxiety-inducing.

In the end, becoming aware of our psychological influence can save us millions.

I am not a financial expert, nor am I a psychology expert. These are my thoughts and if you enjoy them, subscribe.