How can I optimize my emotional relationship with money?

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How can I optimize my emotional relationship with money?

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Did you know that your emotional relationship with money define what type of investor (or spender) you are? This association was even proven through a research conducted at the University of Amsterdam, which states that we become more confident and bold when our finances are at stake.

This is because, according to the study, our brain understands that there is a greater chance that more good than bad actions will happen. It makes us more conducive to taking risks and believing in our own luck. That is why betting becomes so dangerous.

Obviously, being positive is a very good thinghowever, when we talk about money, we must be, above all, realistic and know our financial condition itself.

So having emotional intelligence in finance it becomes something so important, however, hardly sought by most people.

So, to solve this problem, we have prepared an article to help you have a better emotional relationship with your money and how to deal with it better. In it, you will see:

  • What is the relationship between emotions and money ?;
  • How do feelings (emotions) influence financial choices? (FAQ);
  • How to have emotional intelligence in finances ?;
    1. Invest in your financial education;
    2. Make decisions rationally;
    3. Understand your money in a different way.

Continue reading and check all the details about your emotional relationship with your money.

What is the relationship between emotions and money?

There are several connections between your emotions and finances. Money, depending on the person and the time of his life, can have different representations, including power. This makes the emotional relationship with money be different between each one.

But in general, we can divide the relationship with money between positive and negative.

In positive cases, we can think of the extravagant choices based on happiness, power or self-affirmation, for example.

Being able to reach the other extreme, when there is avarice, anxiety, guilt, immaturity or fear.

Among the emotions that stand out the most when spending, are the power and self-affirmation, as positive aspects.

Through them, the individual spends to satisfy his pleasures, without thinking about the future, and all this, to maintain a good social standard or to please yourself.

As you saw at the beginning of the text, positive emotions make us bolder and impulsive when spending, which makes balance in these situations so difficult.

And in the negative forms, we have immaturity and anxiety as the champions. They are responsible for impulsive behavior to meet certain needs.

To understand how do you relate to your money, it’s important to identify why you’ve been unable to keep the line when it comes to saving.

So, be aware of your financial movements and, above all, yourself, should be the focus to understand how everything is working.

How do feelings (emotions) influence financial choices? (FAQ)

As you have seen, feelings are closely linked to your financial choicesbecause, in times of impulsiveness, we make wrong decisions. Among these emotional spikes, we can mention some feelings like:

  • Auto correct: when we go through a difficult time, such as a tiring day, for example, we want to correct this deficit through spending;
  • Fear: losing money or your job is a big fear, right? For this reason, it is common to think of spending because “you only live once”;
  • Anxiety: very close to fear, anxiety leads us to spend immediately, because we are afraid of not being able to purchase such a product or service at another time;
  • Belonging: when we live in society, we are influenced daily by commercials and living standards very different from ours, this means that money has the meaning of power and belonging.

There are also other feelings and emotions such as euphoria, guilt, self-acceptance, anger, nostalgia, etc.

Anyway, even though there is a close emotional relationship with money, the key to not overdoing it is balance. And it can be obtained through emotional intelligence in finance, as you will see below.

How do you know if your relationship with money is emotional?

One of the branches of psychology that best helps us to achieve goals and the self analysis. And this also works when it comes to emotions and finances.

Thus, in order to know our profile and find out if our relationship with money is emotional, a detailed analysis of our purchasing acts is necessary.

So, see when you are most attracted to making a purchase, if that desire is preceded by a moment of strong emotion, if it is a constant case, etc.

In all situations, it is necessary to maintain balance so that our mind remains healthy. After all, if living in an unruly way has bad consequences for our financial life, having too many rules can be harmful to our mental health.

How to have emotional intelligence in finances? Check out 3 tips

Some say that emotions and reasons do not mix, however, emotional intelligence has brought a different perspective on the subject. With it, it is possible rationalize your feelings and emotions, leaving impulsive thoughts and instincts aside.

Thus, it is feasible to conquer more real results and possible, creating ways to carry out your planning in a totally rational way.

The emotional intelligence technique can be applied in several areas, always being a good choice in the financial niche.

There are also those who say that winning a good emotional relationship with money difficult, but with the right strategies, it is possible to have a new perspective.

If you want to get started, see below 3 tips that can help you make peace with your pocket in a simple and very practical way!

1. Invest in your financial education

According to a research conducted by Ibope Inteligência, only 21% of UK citizens had early contact with financial education. And this, unfortunately, can be seen as a reflection of the population's lack of ability to deal with their own finances.

To exemplify the situation, a analysis commissioned by SPC Brasil points out that about 46% of UK citizens do not have financial planning.

This expressive number is caused by the lack of access to financial education, causing debts and more debts for lack of emotional intelligence and control over money.

So, to reverse this situation, know that it is never too late to learn to understand and save your finances.

Therefore, perform the planning adequate, with the help of courses, books or videos can be of great value to those who are starting to think better about their relationship between emotions and money.

2. Make decisions rationally

Unfortunately, not all planning and financial education will be able to deal with your emotions if they are not in balance.

Therefore, it is important to keep in mind the need to purchase a certain product or service.

In short, always ask yourself: do I necessary of this or I just want that?

To resolve this issue quickly and practically, it is important to combine your financial knowledge and your own expenses.

After all, it's okay to buy something that you like and don't necessarily need. The heart of the matter must be control over these actions.

For example, out of the routine and celebrate your promotion at work in a slightly more expensive restaurant, it is understandable and must be done!

However, consider that every night you deserve an extravagant snack because the day was heavy, it could end up becoming a snowball at the end of the month.

So, look at your finances and think about your needs and if your budget allows.

3. Understand your money in a different way

Due to social reasons, the UK residents's relationship with money generally has only one purpose: to pay the bills. And then, when there's some money left, it is never saved, aiming at the momentary pleasure.

A simple step of maintaining a good emotional relationship with money it is considering it as an enabler.

So, think that through it, you can achieve your goals, even those who are not immediate. However, for this, it is necessary to respect your planning and save.

When we realize that the our money can serve other purposes, we ended up taking better advantage of finances and living a more peaceful life.

Now that you know how to have emotional intelligence in finance, see in our article how you can develop it in your workplace: How to develop emotional intelligence at work?

Change your money experience right now!

Unfortunately, the UK residents's relationship with finance, in many cases, is restricted to paying bills, with nothing or almost nothing left for the following month.

This considerably affects your emotional relationship with money, making the subject a great displeasure to face every day.

However, for this situation to change, it is necessary to view your experience with finance differently.

As you have seen, it is necessary to create greater emotional intelligence and learn more about financial education. For without it, the risks of making mistakes or spending too much, neglecting the total value of money, are much greater.

Therefore, make a detailed analysis of your current emotional relationship with money and how it can be transformed with its own change.

With small simple steps, it is possible to reverse the situation in your favor, having an increasingly healthy financial scenario.

So, did you like our content and want more people to get a better financial life through these small steps? Then, share this post on your social networks right now!

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