Psychology with money - Understand your Psyche

 

In terms of our money matters there are certain factors which affects our psychologies. So if you know these factors we can manage our money more effectively.

So today we are going to talk about 3 psychological factors which affects our money spending. One may be an extreme spender or one may be a balance spender. So balance spending affects our psychology positively.So the first thing we need to analyse is whether we are a spender or a saver. So spender means one who spends all money for his needs first and then thinks about saving. Now for savers they think only about how to save and they do not have any idea of spending the money. So if you could do a small exercise to analyze yourself whether you are a spender or a saver and put your comments in the comment box so that I could understand your pattern.

Now the second factor is full budgeted versus free budgeted psychology.Which is your psychology? Are you fully writing down your expenses and based on that you do the spending. You do not end up spending more than your budgeted expenses. They will also feel uncomfortable if any sudden inflow of money comes above their budgeted expenses and will have unnecessary worries. For free budget they will spend money as long as it gets over and if any shortfall comes they will avail loan and spend money. So the extreme approach for both fully budgeted and free budget is a tricky situation. So our goal should be attain a balance between these two approaches. So identify yourself which category do you belong to.

Now comes the third category of people where safety is of utmost importance to them. They will write down each expenses and ensure that they save according to the budget and turn out to be misers. They may even avoid purchases in the family stating that the expenses are not written down in the budget. The other type is status oriented spenders. They will spend money to ensure that they are matching with the status of living of other people in the society. For example one decided to buy a car and they may be able to buy a budget car without taking any loans. But they look at the people living next door and compare their status and decide to buy a bigger car because they would like to equalize the status with others next door. So when you are purchasing anything whether you consider safety aspect as a decision maker or status as a decision maker. 

Now with the above you may able to understand your psychology with money and act accordingly and manage your money more effectively. If you find this article useful please share,like and follow me for further updates.