The Emotional Influence of Money Stories on Our Perception of Expense
The way we perceive what is "expensive" is deeply influenced not only by our personal values but also by our individual money stories, how we perceive, relate to, and manage money based on our experiences and emotions.
Every individual has a unique money story, shaped by their upbringing, experiences, and cultural influences. Some may have grown up in environments of abundance, where spending was encouraged, while others faced scarcity, leading to a cautious mindset around finances and money. These stories significantly impact how we view expenses and what we prioritize in our financial lives.
For instance, consider someone with a background rooted in financial insecurity. This person might perceive investments in education or mentorship as "too expensive," driven by fears of lacking basic needs during their formative years. This emotional burden can create reluctance to invest in opportunities for personal growth, transformation, and opportunities for abundance. Fear becomes an invisible barrier, prompting a focus on short-term safety over long-term value and growth. Recognizing and understanding this fear is the first step to overcoming it. By acknowledging our personal money stories, we can begin to rewire our relationship with money and shift our perspectives, allowing for greater opportunities and abundance in our lives.
If you relate to this, consider reflecting on the following:
• Identify Key Moments: what pivotal experiences from your past shaped your relationship with money? Think about your upbringing and early financial experiences. What messages did your family convey about spending, saving, and investing?
• Reflect on Significant Events: Consider major life events that impacted your view of money, ranging from unmet basic needs in childhood to financial constraints or even a divorce in adulthood. These experiences play a crucial role in shaping your financial approach. Journaling about them can clarify their influence on your current financial choices.
As humans, we naturally seek safety; when we perceive a threat (even if it’s not real), we often prioritize safety above all else. By bringing awareness to these patterns, you empower yourself to make more intentional and informed financial decisions.
On the other hand, someone who has experienced financial stability may feel empowered to invest in experiences or education, believing that these expenditures will yield significant emotional and intellectual returns. They view these investments through the lens of growth and enrichment, rather than financial costs.
However, while financial stability can foster positive emotions, emotions around money can still lead to self-sabotage. For instance, feelings of guilt or inadequacy can deter someone from spending money on self-care or personal development, even when they recognize the value of these expenditures. They may feel undeserving of investing in themselves, leading to a cycle where fear and negative emotions hinder their ability to make choices that align with their values.
To break this cycle, it’s important to acknowledge these feelings and remind yourself that investing in your well-being is not only valid but essential for personal growth.
Reflecting on Your Money Story
Understanding how our emotions and money stories influence our financial decisions is vital. Reflecting on our experiences can help us understand why we associate certain expenses with fear or value, allowing us to challenge and reframe our relationship with money.
Here are a few practical steps to analyze your money story;
Reflect on Emotional Triggers: Notice your feelings when thinking about or handling money. Do you feel anxious, excited, guilty, or empowered?Understanding these emotions clarifies why your approach to money.
Assess Your Spending Patterns: Review your current financial habits. Do you hesitate to spend on yourself, or do you frequently splurge? Awareness of these patterns reveal underlying beliefs about worth and value.
Examine Your Values: Ask yourself: What values drive my financial decisions? Are there expenses that conflict with my values? How can I adjust my spending to better align with what truly matters to me?
Explore Your Fears: Identifying fears or attachments that may hold you back from investing in what truly matters. Identifying these fears can be a significant step toward overcoming self-sabotage.
By exploring these questions, you can identify and confront the emotional barriers that may be sabotaging your financial well-being.
Bridging Value and Expense
In conclusion, the relationship between value, expense, and our money stories is intricate and deeply personal. By acknowledging our emotions and understanding how they shape our financial perspectives, we can make wiser choices that reflect our true values, allowing us to invest meaningfully in our lives.
Recognizing and reshaping your money story is transformative. It opens doors to richer experiences, healthier financial habits, and enhanced emotional well-being. Embracing a positive mindset around money can dramatically change how you view expenses, empowering you to invest in yourself and your future with confidence.
Start today by reflecting on your money story, I invite you to download my free Money Story and Behaviour Bias Workbook available on our homepage! This resource is designed to help you dive deeper into your money story and uncover the biases that may be influencing your financial decisions.
I would love to hear your thoughts on the topic! Let’s start the conversation on Instagram @ wealth_ insideout_
Don’t miss out this Friday! I’ll share insights from a recent decision I made in my own financial journey. I’ll illustrate how my values guided and supported a significant financial choice. Join me to explore how aligning values with financial decisions can lead to positive outcomes!