“If you cannot control your emotions, you cannot control your money.”– Warren Buffett
I don’t think there is anyone out there who wakes up each morning and thinks, “Today I want to make impulsive and unsound financial decisions.”
And yet that is what happens…
We sometimes make decisions that impact our finances detrimentally, not because we want to, but because we aren’t adept at managing our emotions, and allow them (albeit unintentionally) to take control.
We make emotional decisions around finances that inevitably lead to the destruction of wealth.
So, what is an emotional decision?
It is a decision that is driven by either a positive emotion (elation, infatuation, or excitement) or a negative one (depression, fear, shame, or anxiety) and is thus unbalanced.
We can, however, override these one-sided emotions by having these financial strategies in place:
1. Increase your “deserve level”
Emotions such as shame and guilt stand in the way of people receiving and holding onto money as well as valuing themselves when it comes to financial transactions.
Shame and guilt are based on the assumption that your actions/decisions have brought more pain than pleasure or caused more drawbacks than advantages to yourself or someone else.
You can increase your “deserve level” by dissolving shame and guilt.
To do so, first list all things in your life that you perceive have brought you shame and guilt.
Then ask yourself how each thing has benefitted you and/or anyone else involved. (Try and list as many benefits as you can.)
Once you balance out those perceptions and see how all of those things have served you and others, you will no longer self-depreciate and feel as if you do not “deserve” wealth.
2. Create a financial cushion for yourself
Remember, feelings of anxiety and uncertainty over your financial situation perpetuate a poverty mentality.
You can bring about emotional stability (and a healthier financial mindset) by setting up a savings account and making monthly deposits into it.
Knowing that you have money in your savings account will help you to manage your emotions whenever there is a financial challenge or surprise expense.
3. Check your “money self-talk”
Listen to what you are saying to yourself about money.
If your money self-talk is negative and you find yourself saying things like: “I’m always poor, nothing ever works for me,” “Money flows away from me,” “I never have enough,” then that is precisely what is going to happen.
Only you can change how you think and talk to yourself.
If you say things like, “I can do this,” and “If others can save money, I can as well,” you are more likely to take the action steps to bring about the desired outcome.
As a wealth psychologist for many years, I’ve had the privilege of working with individuals and families to help them take charge of their emotions and financial destiny.
Together, we’ve implemented strategies to build wealth (not just financially but in ALL areas of life).
Is financial and life prosperity something you desire?
Is it something you would love to put in the work to achieve? Do you want to have a chat to me about it?
Contact me via email (firstname.lastname@example.org) or WhatsApp if it is. I will then connect with you on an obligation-free discovery call to discuss how we can make it happen.
From my heart to yours,