"Our financial decisions are coloured by emotions, biases and by the people with whom we associate - our peers. Some prefer to live in the moment and not think too much about the future. Some of us make decisions more on "gut feel" than solving problems rationally. Everyone is vulnerable, to a greater or lesser degree, to making mistakes when managing our finances.
Who has not been guilty of putting off a decision and leaving it to later because it is all too hard and now is not the right time? Psychological research has made big strides into better understanding financial decision making... This research has shown there are four basic money belief patterns that people tell themselves, whether true or not:
1. People with a "money avoidance" belief pattern try to distance themselves from money.
2. Then there are those who "worship money" and think that if they only had more of it their problems would go away
3. Those with a "money status" believe pattern link their self worth is linked to their net worth.
4. Finally, there is "money vigilance"; those who pay their debts on time and are cautious about over spending. However, they could deprive themselves for no rational reason. In other words, what we would call a miser."
*Extracted from Sydney Morning Herald Wednesday 1st April, 2015. To view the full article click here:
What "Money Type" are you?