Feb
13
Money is like food – we all have our weak spots. Some of us spend money emotionally. Some live in fear about money. Some have no fear! It’s important to identify what your unique financial strengths and weaknesses are so you can start to address them and move toward financial freedom and ease. The purpose of this exercise is to examine your beliefs and emotions about money so you can see how they may be affecting your saving and spending habits, and identify areas for improvement.
Emotional Side of Money – Questions to Ask/Answer:
(This exercise will be more effective if you actually write your answers down)
- What is important to you about money?
- What emotions do you associate with money?
- What lessons did you learn about money from your family growing up (“good” or “bad”), both directly and from observation?
- In what ways do you manage money well?
- What are some specific ways you could manage your money better?
- Describe your ideal financial picture. How are you making money? How are you managing it? How are you spending it?
- What area of financial management or spending concerns you most?
- What one action could you take today to improve in this area?
- How will you reward yourself for improving in this area?
That’s it! All your money problems solved, right?
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Interesting post, I think the problem is also that people do not understand the purpose of money.
Thanks Tom! I completely agree – I wrote a while back about money as a means, not an end. I think part of the reason people spend emotionally (or fail to manage their money) is that they are not clear or aligned with what money ultimately buys them (ie fulfilling key values like happiness and security). Of course, things like financial education and will-power play a role too
I just happened upon your blog through the Money category on Brazen Careerist. Great topics, look, and content. I’ll be back.
@frugalCPA – thanks for stopping by! glad you found something useful…love your site too.
Not sure if I mentioned this but I was watching Suze Orman on the hour and she took a 20 dollar bill and ripped it in half and their was a reaction from the crowd. Her point was to show just how emotionally attached people are, to a piece of paper.
She also went on to say that money is the foundation.
I liked this post – the other thing I might include in this is the semi-emotional question of ‘why do I actually want the money?’ I think that helps me prioritize and remember there are other things in life than just trying to maximize my earnings.
Very interesting post, I am actually writing the questions down to answer them silly me lol
@Jeff – thanks for your comment – you bring up a great point. Once you’ve figured out what’s important ABOUT money, you still need to prioritize the WHAT – what you actually want to do with it. It’s a good reminder that we don’t just earn money to retire, we should enjoy our life too.
@unbreakable – thanks! hopefully the process of writing down some answers brought up something new for you