What is the psychology of money? Yes, you heard it right, there are many psychological aspects and they do influence the way we live.
Most people think only in the terms of, “make money/spend money/invest money/save money” or something to that effect, but the subject of the money goes much deeper than that.
In fact, there are psychological reasons why we spend, make or save money. There are also reasons for the way we secretly feel about its place in our lives.
How does money truly affect us?
Believe it or not, there are several ways that money affects us psychologically. It can even sometimes feel as if we’re slaves to it, always finding reasons to buy things and fewer reasons to save. But that’s only for some. For others saving money comes easier, and yes, it’s all psychological.
A few secrets of the psychology of money
Supernatural money
One of the first things that I want to get out of the way is the supernatural stigma that’s attached to money. This includes gambling, curses, and other strange ideas which mix your mindset with money. When it comes to gambling, money is seen as a reward for luck and risk alike, depending on which one you believe in.
Some people believe that too much money can be a curse, or the lack of money is from a curse. Some spiritual individuals see money as “the root of all evil”, but let’s face it, money is just an object in and of itself. But who am I to judge these beliefs.
Money breeds entitlement
Sometimes and with only some people, money causes a change in personality, for the worst, that is. When some people come into a greater financial status, their personalities change, taking on a sense of entitlement. To them, this change means a change in how they can treat others, and how others should treat them.
Although from this standpoint, we can see how ridiculous that is, just win the lottery and see if you feel any different. I bet most of us would look down our noses just a bit more than usual. Of course, that’s just an assumption, but a well-researched one.
Less money, more empathy
Although this might sound silly, those of lower-income have a better sense of how other people feel, thus more empathetic. Wealthier people, although intelligent in their own right, seem to pay less attention to those things.
You see, when you have plenty of money, you tend to be more occupied with purchases and savings, even investments, not people surrounding you. I’m not saying that you care, it’s just money keeps you busy in a much different way.
Lower-income people are concerned with making ends meet, getting bills paid, and also saving. The thing is, I’ve noticed more lower-income people giving money to others when they needed money themselves. They could feel as the others felt and understand the plight of being near the poverty level.
The fear of losing money is also less prevalent among the lower-income population because concerns are built on empathy. Fellow people are more important than worrying about a financial solution.
More money, judged and envied
On the flip side of the psychology of money, you will find many poorer people making false judgments against wealthier people. Many feel that people who have a lot of money are cold and snobby.
Some lower-income people even envy the wealthy and see them as being greedy because they don’t share, whether or not they actually do share or not.
The rich aren’t trusted and the bigger the corporation, the more “evil” they must be. Even though this is a loose assumption of what some people think, it forms the way they feel about money itself. Secretly, this sort of psychological effect of money is causing rifts between lower and higher-income groups.
Wealth and happiness
A common question: “Does being rich mean you’re happy?” Well, I have an easy answer for that. No. In fact, there seems to be a higher rate of depression and narcissism in the wealthy than in lower-income groups. Overall, however, it really doesn’t make much difference whether you’re rich or poor.
Happiness can be found in many places, including areas that require no money at all. Even though the psychology of money has slipped into the idea of happiness, fewer people are depending on money as their source of success. Isn’t that fascinating?
Financial avoidance, leading to anxiety
There comes a time where money becomes a problem, your spending or investment habits have become the problem. There also comes a time when important decisions need to be made involving money in some way, and there can be various situations. Here’s where psychology connects with money.
So many of us are stricken with procrastination or even worse, avoidance, which is a bit different where the money is concerned. We avoid financial situations we need to take care of, and the situation generally gets worse, causing anxiety. When they get worse, many people use avoidance once again, causing more anxiety.
The fear of facing the problem becomes tremendous. If you would face the problem, yes, the anxiety would temporarily reach extreme levels, but as you work through the mess you’ve made, anxiety gradually reduces and so does your problem.
The psychology of money can also be good
Although worrying about money and judging others with money are negative frames of mind, you could also strive to reach goals, as well. You could use psychological factors to work for you and not against you.
You must remember, each culture has a certain way of viewing money. While some see it as everything, others see little value in this sometimes “worshipped “ exchange, believe it or not. So, it depends on where you are, who you are, and, again, your psychological view of money.
And I’ve only scratched the surface of the psychology of this coveted possession. Money has become somewhat of a taboo subject.
Most people, unfortunately never dig any deeper than obtaining, saving, investing, and spending of money, as I said before. So, before you brush the topic off, think about money a bit harder, and ask yourself one question.
“What are the psychological effects that money has on my life?”
You might learn quite a bit about yourself.
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Excellent write up….
Thank you, Anjan