What does money mean to you? What is its role in your life? And how much is enough? These seem simple enough questions, but many people never take the time to consider them. Research shows that such questions often elicit a maze of emotions instead of rational responses. Understanding the meaning of money in our lives, and these emotions, will help us become both wealthier and happier.
Giving Meaning to Your Money Behaviour
A combination of peer pressure, ‘group think’ and ‘celebrity materialism’ makes us vulnerable to a range of emotions. They stem from fear and include greed and envy, leading directly not only to financial disasters but also to life disasters. The two are closely inter-related, and often arise from attitudes formed in childhood. What emotional baggage do you carry from your past with respect to money? If your parents used money as a device to control your behaviour; if your pocket money was inadequate; if you were the poor kid on the block; or in any one of 101 other ways money may have played a role in shaping you, it’s worth identifying this as a first step to understanding your money behaviour today.
For the first time in history it’s important to develop a philosophy of money, one that focuses on intrinsic, not material needs and is consistent with your values. Investment and money-related decisions are not made in a vacuum. They are influenced heavily by your circumstances, emotions and beliefs and reflect your philosophy of life, your values and goals.
(Extracts from ‘How much is enough?’ – Arun Abey & Andrew Ford)
Financial coaching is about asking the questions around money, and helping you to understand what role money plays in your life. Once these emotions and behaviours are identified, and if they are negatively impacting on your life, we can help you to structure practices where we can assist in helping you to change negative behaviour around money.