Our emotions play a much larger role in achieving success than is commonly believed. Money is a source of strong emotions, and not always positive ones. Is it possible to make sure that finances do not bring us negative feelings – guilt, resentment, fear?
Research by neuroeconomics shows that emotions not only hinder, but also help to make money in the stock market. How to control them and deal with unwanted feelings and capitalize on them.
Financial problems, a lot of irrational spending, and constant debt – you should seriously think about it. Maybe it’s all about hidden emotions and psychological attitudes?
All bright dreams about personal finance, which from now on will only go in the right direction, can be broken by emotional blocks and other features of your psyche. People often do not even realize how strong their emotions are connected to money, and being aware of such attachments is the first step in getting rid of them.
Let’s figure out what emotional “mines” can be laid in your relationship with money.
Money and emotions are not friends. The problems that arise from money emotions are painful and prevent you from increasing your income. We must seek a compromise because money is an important sector and a reality of our life. Emotions are something we cannot live without. Only the dead have no emotions.
The truth is that money problems are never rooted in money itself. Emotions are our experiences associated with the satisfaction or dissatisfaction of needs, and interests. It turns out that the value that we attach to money gives out the emotional response that money only manifests in us. Consider how your experience with money affects your thoughts, actions, and habits related to finances. What habits and behavior patterns have you developed and what emotions influenced this?
If you think about it, you will surely find something interesting. And don’t delay: exploring your emotions about money is just as important as deciding where to invest and how to budget.
Remember: emotions rule our lives and have a nasty property to destroy all positive undertakings if there is no positive attitude. So, before you develop your plan for boosting your financial situation, deal with your emotions.
Emotions – give a signal that consciousness is now out of balance due to some kind of need. It may be a need for security and the instinct of self-preservation is turned on, there may be a need for love and most likely thoughts have turned on.
Are our thoughts and instincts always right and true? Are you really in danger of death when you call a client with another offer? Then where do you get this fear?
Your desires and needs create pictures based on certain beliefs, past experiences, or the example of your parents. And all this only speaks of unfinished situations, unprocessed emotions, and erroneous conclusions that you made many years ago.
Some emotions prevent you from growing and developing because they envelop you with fear.
Fear is a strong emotion. Find out what you are really afraid of and work through your fear. When identifying an emotion, it is important to name it correctly. There are many types of those fears.
A group of scientists from Stanford University, Carnegie Mellon University, and the University of Iowa found that the fear of losing prevents investors from thinking logically. In 2005, economists conducted a study involving ordinary people and people unable to experience fear due to brain damage. At the same time, the IQ level of all subjects was the same.
Participants in the experiment received $20 each. They were offered to bet $1 and flip a coin. If the participant guessed what would fall out, he received $2.5. If he lost, he lost $ 1. The “enemy” of successful behavior turned out to be the fear of losing. “The fear of losing can be overcome, like any other fear – it puts pressure on the psyche and does not allow you to think about further steps until a decision is made.
Regret is also a destructive emotion, and the degree of its influence on the strategy of behavior in the market can be very high. A group of researchers from Golden Gate University, the University of California at Berkeley, and the University of California at Davis concluded that the emotional pain and regret that traders experience after losing affects their decisions when buying and selling stocks later on.
Anxiety, on the other hand, is considered a useful indicator. It helps to navigate a risky market situation when not all parameters are known. Scientists from the California Institute of Technology managed to find out which part of the brain is responsible for the feeling of anxiety and how it reacts to the appearance of risks. Experts concluded that the habit of noticing your anxiety and controlling it allows you to invest with greater success.
The authors of the study say that decisions are easier to make if you recognize that the market is unpredictable because it consists of billions of actions of various investors. Therefore, you need to be well aware of the emotions that arise in response to his movements and use your anxiety as a litmus test.
Of all the emotions associated with money, shame is perhaps the most difficult to bear. The emotion of shame goes very deep into who you are. It is based on the concept of “not enough”, being smaller than others, having low self-esteem, and not deserving what you have. This indicates that they are inadequate or incorrect.
Shame is “basically the fear of being unsociable”. We have all an experienced shame because it is a primary and universal human emotion. However, many of us are afraid to talk about it, and because of this, he can continue to control our lives.
The emotion of anger towards money can leave you emotionally and physically closed off from others. This can keep the situation in which you are angry fresh in your mind, body, and spirit. Anger can also lead to blaming others for a difficult situation. In essence, anger and guilt turn away money, opportunities, and people. The emotion of anger about money is based on a belief in the unfairness of life and/or the unfairness of money. The resulting guilt is another way to direct anger at yourself or others.
Correct setting to money
Money is just a tool. The stench is just in every world, and that’s it. Do not hurry to please, as your picture has a lot of money for each other. If a person is loved somewhere, then it’s a tragedy, if you don’t want to open your heart to anyone again. Without a doubt, you are afraid to waste the one you love. And the shards always attract us to the very ones we are afraid of, then emotionally attached to pennies, people often spend them.
Life, one way or another, forces us to determine our attitude to money, choosing any possible position between desperate silversmithing or ascetic struggle against luxury and wealth, on the one hand, and the gambling for money, the desire to own as much as possible – on the other . Our professional and personal life is impossible to imagine without discussing the problems of money. This topic is constant today, it sounds clear or hidden in the subtexts of the relationship. Sometimes she is conscious, sometimes unconscious, but she always is and often guides us.
Manage money RATIONALY, not emotionaly, and you will achieve the financial well-being