Money is an important attribute of life. The influence of a person’s financial condition on the quality of his life is difficult to overestimate. Only saints don't need money. Therefore, most people sooner or later set themselves the task of learning to succeed in financial matters.
Psychology of money in human life
To achieve financial prosperity, you need to turn to the psychology of money - a young direction in psychological science that studies the influence of attitudes about money on a person’s behavior and his relationships with other people.
Psychological and economic aspects of money
The economic aspect of money is that financial income is seen as the basis of purchasing power. They make various goods and services available to us. All economic theories are built on the basic assumption that people behave rationally with money, trying to maximize income.
However, psychological research demonstrates the widespread prevalence of irrational behavior regarding money. The way people earn money, borrow and lend it, spend it on gifts and charity, make and do not make financial savings, sometimes completely contradicts common sense.
The psychology of money classifies the following psychological effects as irrational behavioral patterns from the point of view of economic gain.
- Money illusion. People tend to attach more importance to the face value of money rather than its purchasing power.
- Money is considered a more valuable resource than goods of similar value, since money is the most liquid commodity.
- Silencing effect. Discussing income is considered rude because it threatens our self-esteem. According to psychoanalysts, their clients find it much easier to talk about sexual problems than about money.
- Money tension. Tension between people increases when it comes to financial issues.
- Money profanation. Monetary payment for labor demonstrates its quantitative assessment, which leads to the profanation of human relations. Therefore, for example, it is customary among relatives and friends to provide services to each other free of charge or to pay for them through barter.
- Lending effect. While borrowing money is frowned upon, lending, including in the form of grants, is approved.
So, even economists are forced to admit that the role of money is not limited to a simple medium of exchange. The consciousness of people endows banknotes with various symbolic content and power. And although most agree that money cannot buy true values, on a subconscious level people associate having money with the ability to satisfy needs for freedom, security or love. Many people believe that their failures in these areas are due to a lack of funds. As a result, the so-called thirst for money develops, inducing envy and greed in people.
Differences in the psychology of money between men and women
Gender influences the attitude towards money, others and oneself in connection with obtaining it. With the industrialization of society and the separation of the workplace and home, it was the activities of men performed in public places - in factories, workshops, offices - that began to be viewed as the sacred act of “earning our daily bread.” Despite the fact that a woman was an object of worship in the role of a caring wife and loving mother, the housework she performed was profaned and considered “unproductive,” banal, and without value.
A woman began to be treated exclusively as a consumer: the man “works” - the woman spends money “earned exclusively through his efforts.” In families that still maintain a patriarchal model of relationships, women often feel guilty about spending money. Moreover, if a husband has problems getting money, it is easier and safer for a woman to pretend to be a stupid spender than to let her husband feel his inadequacy as the family breadwinner. On the other hand, if a woman stubbornly refuses to accept the care and love of a man in monetary terms, then he may lose his motivation to earn money.
Laws of money
Money doesn't appear by magic or out of thin air. Each bill received is the result of human activity. The larger it is, the greater the result. But activity alone on the path to wealth is not enough. Money, as a complex mechanism, has its own laws, understanding which will help preserve and increase capital. The psychology of money describes in detail the rules that govern money:
- The law of choice states that a person himself decides whether to be rich or poor. Passive, uninitiated people who do not want to achieve their goals remain below the poverty line. People who are open to the world will not miss opportunities to increase their capital: a chance to get a new, more profitable job or take on an additional project for career advancement. We are not talking about constant, continuous work, because you need to value yourself and your strengths. You can begin to follow the law only after changing negative attitudes about money.
- The law of exchange states that money is a means of acquiring goods. Without exchange, they lose their significance, turning into “pieces of paper”. People can replace the real goal for which they earned money with a race for banknotes. Such an attitude will not only not help you gain capital, but will also increase the likelihood of losing what you have. As long as money is a means, a person can reach great heights, constantly increasing her finances.
- Large sums are attracted to large bills. This is how the law of magnetism works. It is valid when a bank account is opened. The larger the amount, the more profitable the interest. From a psychological point of view, a stable financial situation predisposes a person to take action, improve the quality of his activities, and anxiety and fears dissipate. These factors have a positive effect on increasing income.
- The law of capital characterizes a person’s ability to earn money, and salary is an indicator of this ability. Money goes not to those who work hard, but to those who develop and work for quality. Constant self-improvement in the professional field is the key to strong capital.
- In psychology, when earning big money, the law of perspective applies. The bottom line is that the outcome of all financial actions must be calculated in advance. When starting your own business, don't expect a lot of cash flow. It pays to be persistent and see it through to the end. Then your income can increase tenfold or more. Rich individuals think about prospects first.
- Law of savings of income. Rich people have the healthy habit of saving a certain percentage of their income as a reserve. You can start with a small percentage, constantly increasing the number to 10%. From a psychological point of view, an individual who has an additional reserve feels much freer and safer.
- Rich people invest the money they earn in a profitable business. But you should approach investing responsibly, having carefully studied the company. When investing, there is always a risk of losing your money. If a person is not ready to take risks, you should not carelessly invest your money. This is how the law of investment works.
- Another law of saving money. The basis of financial well-being is measured by the amount of money left over from income, excluding the 10% that a person saves. If a person manages to save most of his earnings without compromising his desires, this means that his finances are being managed correctly.
- Money loves counting. This is the law of analysis. It is necessary to regularly calculate and evaluate the financial situation. Counting expenses and income should become a daily habit of a person. The more a person thinks about money, the more conscious his actions will be.
Thinking ahead is the basis for success
Psychology of money: how to become rich?
Psychology primarily considers the request “I want money” from the point of view of the motives that lie behind the desire to get rich.
Healthy attitude towards money: psychology
People often take the hard route to get their needs met. Before you start the “race for millions,” ask yourself what goals you are really pursuing. Do you really dream of wealth? Or do you really want something that you think comes with big money?
Acting out of a sense of lack never pays off. Let’s say you dream of making a fortune because you believe that having more money will allow you to “never again” have to suffer from being looked down upon by others because you drive an old car and wear unfashionable clothes. However, having become rich, you will also depend on the opinions of others. Perhaps there are simpler and more reliable ways to increase self-esteem? For example, ask yourself the question for what qualities you respect other people, regardless of their financial situation (honesty, goodwill, strong will) and direct your efforts to developing these traits in yourself.
Money cannot compensate for a lack of peace of mind. There are no fewer neurotics among the rich than among people with low incomes. A healthy perception of money involves treating it as a tool that allows you to increase the joy that already exists in a person. The golden rule of truly successful people: first become happy, and only then proceed to any action.
Psychology: what to do if there is money denial?
Psychologists who specialize in solving financial problems note that behind unsuccessful attempts to get rich there is often a fear of success. On a conscious level, a person seems to want to achieve material well-being, but in the subconscious, wealth is strongly associated with all sorts of problems.
Fear of envy
The psychology of money is such that successful people are always in the spotlight. Their lifestyle and actions become the subject of discussion, envy, and gossip. If as a child you had the experience of being pestered by envious people and ill-wishers for your success in school, sports, or creativity, then there is a high probability that you have developed a fear of any achievements due to possible aggression from others. Such fear is relieved by the understanding that you are now an adult and are free to choose your social circle. Don't let outsiders set the standards for how much money you should have and how you spend it. People who truly love you will always rejoice at your achievements.
“A woman should not be more successful than a man”
If you are a woman, the fear of hurting the pride of your less ambitious or successful man may prevent you from earning big money. A situation where a wife earns more than her husband can really become a threat to the family idyll. But only if the spouses are subject to gender stereotypes.
“Money is unspiritual”
You may also be hampered by the attitude that striving to earn big money is simply indecent. Some argue that there is nothing spiritual about wanting money. If you are tormented by the fear of being branded as a materialistic person, remind yourself often that you are not a disembodied spirit. You cannot separate yourself from the material aspect of life.
“What if I become a different person?”
There is a myth that money changes a person. And certainly for the worse. But in fact, big money only reveals the true nature of its owner. When there is no money, a person is more dependent on the will of his superiors, the support of colleagues and relatives. As soon as cash appears, the need to maintain good relations with others through concessions and compromises disappears. If the only motivation for going to work is the salary, the person quits it or begins to be irresponsible about his job responsibilities.
From a psychoanalytic point of view, the fear of wealth is the fear of loss of self-control. An individual who has not developed will and self-discipline needs external restrictions in the form of financial disadvantage or bodily illnesses, which provides him with a sense of security. For example, a person who is afraid to openly express an unpopular point of view may suddenly develop a sore throat and a dull voice.
Imagine yourself suddenly achieving financial success. What lifestyle will you choose and how will you behave towards others? Will you really begin to waste all your time on empty entertainment, will you begin to look down on your less successful acquaintances, will you rush to change your current girlfriend to a younger and more beautiful one? A simple game of imagination will help you understand your true feelings and desires.
Helpful Beliefs About Money Worth Buying
Many people who have failed on the path to financial prosperity tend to accuse government authorities, employers and traders of a global conspiracy against ordinary honest workers. This variation of socialist ideas is very common among the inhabitants of Russia and explains the lack of money from one person by the fact that it illegally migrates into the pockets of selected citizens. The psychology of money states that your ability to get rich is influenced not so much by the existing economic or political situation in the country, but by the dominant thoughts about money.
The number of resources is unlimited
The world is full of abundance and opportunity. Money can come into your life in endless different ways. This is why so many market niches are opening up all the time and people are achieving financial success with ideas that recently had no market value.
If you tend to think that the road to financial prosperity is a long, difficult journey, then it will be - for you. Some people look at life with optimism, notice favorable opportunities and take advantage of them. Others, because of their pessimistic perception of life, pass by open doors, and then complain that life is unfair.
The negative scenario is laid down from childhood, when the child constantly hears from his parents that life is difficult, one must dream modestly, and one can become rich only by stealing. Life is a self-fulfilling prophecy. When inherited negative attitudes about money begin to be confirmed by one's own life experiences, belief in their truth only intensifies. Therefore, it is not so easy to switch to a positive attitude.
I deserve to be rich
Most often, big money causes feelings of guilt. This is associated with Puritan values: asceticism and hard work. Puritan morality condemns self-indulgence and objects to easy money. As a result, many people feel the need to justify their financial well-being through hard work.
To the question of how to become rich and successful, psychology answers: believe that you are worthy of financial abundance. There is nothing more destructive to your ability to allow significant amounts of money into your life than a negative attitude towards yourself. People with low self-esteem are embarrassed to ask others for help, afraid to ask their bosses for a well-deserved increase in salary, and refuse lucrative offers for fear of not meeting the expectations placed on them. Don't repeat their mistake.
If the thought of living a prosperous life while others are living paycheck to paycheck makes you very uncomfortable, then attracting financial success will be difficult for you. Think about it: you don’t feel guilty towards blind people for being able to see, do you? And don't wear a dark blindfold to compensate for their lack of vision? Likewise, your deplorable financial situation will not relieve other people’s financial difficulties.
Try to outsmart your subconscious and find an excuse for your success. Plan what good things you will do to spend part of your increased income on: set up a playground in the yard for everyone, help a local orphanage...
What's next?
A 2006 paper published in Science magazine talks about the importance of studying the psychology of money for two important reasons. Firstly, money is one of the most important values for a person who lives in today’s society with its own economic laws. Therefore, it is important to study the influence of money on any area of human activity.
Secondly, how a person reacts to all sorts of factors related to money directly affects his life. The same studies that we briefly mentioned above made it clear that even one thought about money affects a person’s brain so much that he immediately switches to his personal needs, desires and principles.
In addition, the stronger a person’s attitude towards financial success, the less he cares about what is currently happening in society in general. And people who have a more serious attitude towards money and are focused on material values, as a rule, are much less likely to be happy people. Studying these and similar questions, according to researchers, can help improve people's levels of happiness.
We don’t know how you feel about money. But one thing we can say with confidence: money is not all that “rules the world,” as many people now say. Money is just a part of a person’s life, and the part is often not the most important. Strive to be richer spiritually and morally - this is what true wealth is based on. And, of course, read Robert Kiyosaki to treat money correctly.
Good luck and prosperity to you!
We also recommend reading:
- Storytelling
- How to save money wisely
- How to learn to manage money more wisely
- Children and money, or How to teach a child to manage money
- How to make money on crowdfunding
- Top 7 mistakes in managing money
- Behavioral Economics
- Cognitive economics: the science of thinking
- 10 basic rules of financial literacy
- Strategies for Overcoming Limiting Beliefs
- Causes of the global crisis of 2008
Keywords:1Business
Psychology of wealth: how to easily attract money?
The psychology of money is not only our beliefs about possible wealth, but also our feelings about our current financial situation. By cultivating a sense of well-being, you can increase your income in a short time. It doesn’t matter how dire your current circumstances seem to you.
Gratitude
Look around and see what you already have in your life. And try to sincerely enjoy these things. Of course, for example, modest rented housing and a boring low-paid job are not the limit of your dreams. But this is already something.
Wallet
Find the largest bill you have and put it in your wallet, but do not use it to pay for goods. During the day, think about what you could buy with this amount if you wanted: take a taxi to work instead of the subway, have a snack at an expensive restaurant, buy a cute little thing you saw in a store window. By mentally spending the money you have saved over and over again, 20-30 times every day, you will, at the level of sensations, develop a calmer attitude towards a higher level of income and spending.
Imaginary bank account
You can also open an imaginary bank account and deposit an amount equal to your monthly salary into it on the first day. Your task is to “spend” every last penny of the amount on the same day. So the next morning you need to deposit twice as much money into your account and again figure out where you will spend it.
Magic box
The psychology of money is such that we often forget why we strive to improve our financial situation. Try not to focus on a specific amount by which you dream of increasing your monthly income. Thinking about the experience you want to have: travel, get an education, make a movie. By scrolling through your head about the desire itself, you bypass the financial issue of the matter, and your unconscious finds other ways to realize what you want. For example, you will be “magically” lucky and will be sent on an paid business trip to the country of your dreams.
Secrets of successful people
The money psychology of rich and poor people is different. To achieve more in life, take note of the secrets of successful people. By adopting their habits and way of thinking, you will change your destiny.
- Keep a diary. Keeping a diary helps you organize your thoughts, track negative beliefs about money, analyze the effectiveness of your behavior, and become more purposeful.
- Read more. The benefits of books are obvious. Reading broadens your horizons, enriches your inner world and develops your thinking. Try to develop the habit of reading for several hours every day. But don't get carried away by novels and detective stories. Read educational literature: biographies, philosophical and economic works, books on time management.
- Develop immunity to failure. The secret of success is confidence and optimism. Thomas Edison succeeded in creating an incandescent light bulb only after 9,000 attempts. View your failures as experiences that will help you in the future.
- Be creative. When creating your own business, strive not just to earn more money, but to improve this world, to make people's lives easier and more joyful. Projects that create something valuable easily attract money.
- Dream bolder. Set yourself goals that take your breath away. Do you feel like you won't be able to triple your income next year? Try it! The higher you set the bar for yourself, the more creative ideas you will come up with.
- Develop your communication skills and strive to create warm relationships with others. Don’t be gloomy and withdrawn, communicate with people of different social groups, ages, and professions. From another person you can get information on a topic of concern, valuable advice, and help.
- Reach out to people who are better than you. Delve into their way of thinking, emulate their behavior. Your environment shapes you - as a person, as a professional.
- Don't be afraid to take responsibility, don't shy away from it, learn to benefit from it.
- Make every effort to achieve your goals today. Don't wait for ideal circumstances. They don't exist.
- Turn what you love into a business. To be competitive, you need to love what you do. This is the only way you will have the energy to get up in the morning and do your best at work.
By learning to think like successful people do and gaining knowledge of the psychology of money, you will be able to see from your own experience that wealth is available to everyone.
