The 5 Psychological Factors That Influence Our Attitude Towards Money
Everyone knows that money can buy happiness. In other words, it’s not how much you have that makes you happy but rather how happy you are with what you have. This is why we humans tend to be conservative with our money. Psychology has a lot to say about the attitude towards money and its influence on us. The way we see money, its value, and how we interact with it all depends on the type of person we are. Five main psychological factors that determine your attitude towards money may surprise you: Are you a carnivorous or herbivorous type of person? Do you prefer spending or saving money? Financial conservatism or frugality? These factors may not seem like much now, but as time goes by, they will have a much more significant impact on your life than you think.
Your financial personality - Are you a carnivorous or herbivorous person?
This question will determine whether you are a frugal person or just plain addicted to spending money. A carnivorous person is a thrill seeker who enjoys spending money the most. This person craves excitement, variety, and new experiences. Frugal people, on the other hand, make up the majority of savers. They are cautious and prefer to save money for a rainy day.
Financial conservatism or frugality
This is a financial personality trait that depends on how much you spend and how much you save. If you are financially conservative, you prefer to save money and don’t become excited by spending money. If you are a financial conservative, you are likely to be incredibly frugal. You may cut corners in your spending habits to save as much money as possible. You may also have a hard time spending money on luxuries because you believe saving for the future is important.
How much do you earn and how much you spend
You may wonder why we care about how much you earn and how much you spend. After all, isn’t it how much money you have that matters? The answer is yes, and no. While knowing how much money you have is important, it’s also essential to understand how you use it. Money is not something you throw away. It has value and should be spent wisely. What you spend money on and what you earn it for is just as important as the amount of money you have.
Your belief in money and its value
This is what we’ve been talking about all along, isn’t it? If you strongly believe in money, you are less likely to be financially conservative. You are more likely to spend money on luxuries and have a weak belief in money. This will make you frugal but may also make you less comfortable with your current financial situation.
Knowing your financial personality type and how it will impact your attitude towards money is crucial. This will help you make better financial decisions and prevent wasting money on unnecessary purchases. It will also help you save more money and understand how your current financial situation impacts your daily life. Knowing your financial personality type and how it influences your attitude towards money will help you see what you have to work with and what you need to change. Understanding these factors will help you better plan for your financial future.
With the Savings Jar app, you can find the right financial coach that fits your attitude toward money. Financial coaching is a proven tool to set you on your journey towards setting and meeting financial goals.