Final Episode 4: How To Detach Your Emotions From Money for Better Financial Decisions.
Last week, we identified 8 money-sabotaging emotions.
Today, we are going to examine how to separate your emotions from money so you can be more objective in your money decisions.
To do this, the first step is to identify which emotions you are most susceptible to and the money situations that trigger these emotions.
★1. Anxiety ?:
If you find yourself anxious about money, find out the true cause of your worry and get it addressed.
Your money anxiety could stem from a problem you have been avoiding. Get it fixed and watch the anxiety go away.
If it is a problem that won’t go away quickly, experts advice you give yourself permission to spend only a few minutes a day indulging them.
Doing this will also allow you to limit the behavior so that you won’t be occupied with bothersome thoughts all day.
Use that time to relieve the problem and alleviate your stress and spend the rest of your time on productive thinking.
Try to come up with one thing each day that you can do to control the situation that’s causing the anxiety.
★2. Jealousy ?
If jealousy is driving you to spend money recklessly in other to catch up with your friends, you have to bring yourself to think, “what is missing in your life?”.
Convert your jealousy into a growth opportunity by making a careful self-examination of your finances.
Let your envy fuel your desire to make smarter and radical money decisions that can help you raise the money to get what you want, at the right time.
Instead of feeling insecure over what you don’t have, develop a habit of gratitude by focus on the good things of life that you have.
★3. Regret ?
Regret is a wonderful indicator of which areas of your life that needs improvement and can provide the motivation you need to improve.
Convert your regret into a great learning opportunity and see what you can do today to avoid future behaviors with negative consequences.
Forgive yourself of the mistake, embrace the decision making process and take actionable steps to avoid such mistakes in the future.
★4. Embarrassment ?
When you go out with someone you are familiar with, it pays to be honest about your financial situation.
You don’t have to feel bad admitting that you are on a tight budget and looking to save money.
Any good friend will understand where you are coming from and will not encourage you to overspend.
“Ultimately, you have to realize that it’s about who you are inside, not what you have or don’t have” – Maggie Baker.
★5. Sadness ?
Even when you are grieving about something, you still have to take charge of your financial life and make important decisions.
It could be beneficial to find an outlet for your sadness. Talk to someone you trust and get the burden off your neck.
You may also need to handover your money to a trusted financial planner to manage it for you. Knowing your money is under control can help lighten your mood.
★6. Guilt ?
Last time, I mentioned how feelings of guilt from sudden undeserved money can cause you to spend recklessly.
To avoid this, it is absolutely important to have a financial plan for your money long before it arrives. Having spending limits by sticking to this plan can help you focus.
Alternatively, you might consider channelling some of that money into charity. This allows you to take the focus off you and invest your good fortune into something helpful.
★7. Feeling Overwhelmed ?
People feel overwhelmed about their finances when they lack control about what happens to their money.
The root cause not feeling in control could be ignorance about basic financial concepts. If so, then taking action in educating yourself can help you.
Before going into any investment, invest first in your Financial Intelligence by reading books what will make you financially literate in that aspect of investment.
That way, you can take charge of your finances or be actively involved in what your finance professional is doing with your money.
★8. Overconfidence ?
Money confidence and positive outlook can be helpful in overcoming many money problems.
But you should be careful about crossing the line between optimism and denial. Spice up your confidence with reality and face the numbers about your finances.
How is your balance sheet like?
Is the income from your assets enough to cover your expenses?
Do you have enough for retirement?
Answer these questions objectively and don’t turn a blind eye on them.
In conclusion, one of the best ways to create financial security is to separate your money from your emotions.
Because your emotions, thoughts, and beliefs directly contribute to your behavior, which directly affects how much money you earn and spend.
Also, you can successfully cut off your attachment to money by having multiple streams of income.
Do you have any questions or comments from the just concluded series on Money and Your Emotions?
Let’s hear you in the comments below.
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