- Brinda,
Intern, Mind Splatters, July - Aug 2023
Hey there, curious minds! Today, we're diving headfirst into a topic that's as familiar as our morning coffee and yet as mysterious as the depths of the ocean: the psychology of money. It's like that secret friend who's been with us through thick and thin, silently influencing our choices, emotions, and even our dreams. But if you have ever read the book Psychology of Money you’d know that making a lot of money is not how you become wealthy but rather how you behave. If you haven’t read the book, don’t worry we got you covered.
Raise your hand if you've ever thought, "If only I had a bit more money, I'd be happier." Well, welcome to the club! It's called the "hedonic treadmill," and it's like running on a never-ending path, always chasing that elusive carrot of happiness. It's like upgrading to a fancier car and suddenly, your neighbor's even fancier car makes you wonder if you're falling behind. But here's the secret – the treadmill never stops. So, why not take a breather? Let's focus on what truly makes us feel alive, whether it's painting, hiking, or just sharing a laugh with friends.
Let us look at a quote from the book:
“The challenge for us is that no amount of studying or open-mindedness can genuinely recreate the power of fear and uncertainty”.
We were protected from childhood by our parents and finally, when we face the world there is fear and uncertainty.
The same reflects when we make our investments, the new world creates a sense of uncertainty in us that no amount of education can prepare us for.
It is just about believing your instincts and jumping into the unknown. If you swim you survive if you drown that’s it. The fear of death instills in you a great drive that makes you swim.
Another quote that is my personal favorite goes,
“The ability to do what you want, when you want, with whom you want, for as long as you want, is priceless. It is the highest dividend money pays.”
This is the greatest asset one can acquire. The freedom to do what you want which financial independence gives you.
This also talks more about emotions which are higher than money.
When you take a stand, you put emotional needs first, before money. Then automatically money flows.
Now, let's address the monster under the bed – money-related stress. It's that gnawing feeling that there's never enough, or worse, that we might lose what we have. Enter the "scarcity mindset," where our decisions are driven by a fear of scarcity. But hold on, take a deep breath. The truth is, resources are often more abundant than we realize.
By rewiring our brains to think abundantly, we can make more confident choices and let go of that stress. I want you to imagine this: a trip to your dream destination. It's tempting to book that flight right away, but what if you waited a bit? Delayed gratification – it's like a superhero power that helps you resist the temptation of instant rewards for greater, more fulfilling outcomes. Think of it as planting seeds for a future garden of experiences. It takes practice, but as you nurture this skill, you'll find yourself better equipped to handle financial challenges and build a secure tomorrow.
And then there is the social comparison – the classic "grass is greener on the other side" scenario. Thanks to social media, we're bombarded with glimpses of other people's seemingly perfect lives. It's easy to feel a twinge of envy or, on the flip side, a boost of superiority. But here's the truth: those curated snapshots rarely tell the full story. So, instead of falling into the comparison trap, let's cheer each other on, focusing on our own unique journey. Remember, money isn't just about the numbers – it's about the stories we tell ourselves, the choices we make, and the adventures we embark upon. So, let's treat money not as a mysterious enigma, but as a tool to craft a life rich in experiences, relationships, and personal growth. And as we work to use money as a tool for a rich life, let's also invest in our mental well-being, ensuring we're equipped to navigate life's complexities with confidence and clarity. Consider therapy as an investment in your most valuable asset: you.
The title is so witty, and I love the tips you've given!