Have you heard “talking to yourself is fine, but you need to worry when you start answering”? Well, it may be time to let that go as current psychology tends to disagree, instead suggesting self-enquiry (asking yourself questions) as a powerful tool for change.

Financial psychology* tells us that building awareness of our beliefs, thoughts, and feelings about money, equips us to better understand and take control of our decisions and behaviours. Why? Because when it comes to our finances, like it or not, we cannot escape the impact of our emotions, our family or our past. They all directly influence our spending, saving and investment choices. (When purchasing real estate, there is another level of impact, so this process can be especially important.)

Start by asking questions to identify feelings, beliefs, and self-talk about money.

Then listen to the answers. This process can happen in a number of ways, but some find it helpful to process their thoughts in writing (handwritten or typed, it doesn’t matter). However you do it, the power lies in what you learn.

Building financial self-awareness allows us to make changes, be empowered to act, and have the inspiration to grab hold of our financial future with both hands.

Whether your next steps are to consolidate debt, refinance your mortgage, or purchase property, our Team has the knowledge and experience to help you take them.  Why not give us a call on 8657 8664 or contact us here? We are cheering for your financial future!

 

*Also described as ‘Economic Psychology’, ‘the Psychology of Money’ or ‘the study of money-related behaviour’.

 

Sources:
1. https://exploringyourmind.com/financial-psychology-the-art-of-knowing-how-to-invest
2. https://forbes.com/sites/prudygourguechon/2019/02/25/the-psychology-of-money-what-you-need-to-know-to-have-a-relatively-fearless-financial-life
3. https://core.ac.uk/download/pdf/19187704.pdf
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