The Psychology Of Better Financial Decision Making

By John Loff / Posted: Mar 13, 2018 / 0 Comments / Posted in Finance and Psychology

How to make best financial decisionsIf you want to know about money and better financial decisions, you should look at important practical and psychological facts that apply. You can make dealing with money a lot easier – that is earning more and spending less – if you concede or believe that: Money Is Energy.

Is This $ our Energy?

We humans need a symbol of our life’s energy, which is how we ended up with money in its most basic form. Having money to trade with is a lot easier than hauling a cart behind you filled with all your worldly goods so that you can trade with each other. Can you imagine life without money?

Imagine if you are an artist or a plumber.
How do you go about your daily transactions without money?
What if your landlord is not interested in your arts and crafts?
What if the doctor hasn’t got any leaky pipes to fix?

Bartering might be okay sometimes, but it’s just not possible all day, every day. Regardless of your occupation, goods and services represent time, effort, and expertise. Put another way it represents energy. When we get paid with money for performing these tasks, we are exchanging a symbol of energy.

Your Energy and Money

Is that important to know? Yes, because when we know and understand that fact, feel it in our bones, we make better financial decisions. In simple terms, what happens to our energy will happen to our money. More specifically, whatever drains our energy, wastes our money.

Energy Drains

Here’s an example. Think about the employee who is always distracted by “personal problems,” which you can refer to as relationship energy drains. Does that employee contribute to their company in the best possible way? Will that employee be looked at for promotion? Will that employee be on the lookout for career opportunities? Probably not.

Think about this: Are your chronic personal issues that are taking up a lot of your energy affecting your bank balance?

Being the Best Can Cost

These issues are not always evident as outward drama and dysfunction. Sometimes the problem comes from pure and even seemingly desirable things like perfectionism or a desire to volunteer and help out. If you take these impulses too far, they will start draining you rather than inspiring you.

And that is where the money problems start showing up. It often starts with little things like spending too much on coffee or junk food to get through a tough week and ends up with chaotic financial records, habitual overspending, and chronic or low-grade health problems. All of those things end up costing us money one way or another.

Make Changes

You can turn these patterns of negativity into new opportunities by remembering that whatever happens to your energy will happen to your money. What can you do to plug the energy draining out of your body due to stress and find a way to recharge before it starts creating unexpected expenses down the road? Sometimes deciding that a client report is really good enough, or treating yourself with a massage can make good economic sense. (Not always, but sometimes.)

Check List of Energy / Money Drains

Is this making sense to you? Look at some of the common drains on your energy to see which ones relate to you. Then, slowly make some simple changes to plug those drains.

1. Understanding the specifics of your financial agreements.

Avoid being vague or unclear. It is about understanding who owes you what and when and under what terms. Are you absolutely crystal clear about your financial obligations to others? Are you prone to being a bit nonchalant about these things and just worry and wonder?

2. Allowing other people control your time.

These things are:

  • Letting others make last minute changes all the time that throw you off track.
  • Allowing friends or family to push you into spending too much of your weekend time in ways that are not relaxing at all.

Learn how to say no at the risk of upsetting them rather than maintaining a pattern that drains your energy until it creates a crisis.

3. Being disorganized with your bills and paperwork.

Eventually, you will miss a bill, pay late fees, or have to hire an accountant or professional organizer to get you out of a jam. Don’t procrastinate. Either get help or at least start a simple system to get all those things organized.

4. Being the one-stop shop for everybody!

It is a strategy that does not work well either for business or people. By doing this, you will always feel like you don’t measure up, that you are inadequate. What is your real value when you are trying to do everything for everyone? This behavior and attitude do not attract opportunity and abundance.

Financial Decisions and Prosperity

If you want to get on the train taking you on a Prosperity Journey, you need to work out what is draining your energy and what you can do about it. Are the people and organizations in your life returning value back to you? That may mean anything from spiritual fulfillment or helping with the dishes. It’s not complicated. Keep it silly simple and ask yourself:

“Is this situation feeding me or draining my energy?”

You will know the answer. And when you do, and you stop doing the things that drain your energy, you will find that you also will start effortlessly creating more money.

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