The Psychology Behind Making Smart Financial Decisions

From “Psychology of Money” Book

By Rochi Zalani

The psychology of money refers to the study of how people think, feel, and behave in relation to money.

It teaches us about the cognitive and emotional processes that influence our financial decision-making, and how our beliefs, values, and past experiences shape our attitudes and behaviors toward money.

Some key things that the psychology of money teaches us to include:

1. Our beliefs and values about money shape our financial behavior: Our beliefs and values about money, such as whether we view it as a means to an end or as an end in itself, can influence our financial behavior.
2. Money can have both positive and negative effects on our mental and emotional well-being: Money can bring a sense of security and freedom, but it can also lead to stress and anxiety if we don’t manage it well.
3. Our past experiences shape our relationship with money: Past experiences, such as growing up in a financially stable or unstable environment, can shape our attitudes and behaviors toward money.
4. Money can affect our relationships: Money can be a source of conflict and tension in relationships, and it can also impact how we…