December 19, 2013
Personal finance is not overly complicated. The psychology behind it is. Explain?
Personal finance is not overly complicated. The psychology behind it is. Explain?
It is not difficult to manage your finances (design a financial plan one time every year and stick to it). Our society wants you to believe that you are not capable of managing your own finances. Instead, our society tells you that you need a financial adviser to manage your personal finances for you. Don’t buy in to that! No financial adviser can do for you what you can do for yourself!
I applaud you for taking a stab at this one, Katherine. It is a bit subjective so there is no perfect answer. Here is my perspective on this rather difficult question.
Personal finance can be learned and applied by the vast majority of people. It really is not that complicated and yet, many, many people screw it up. Why?
Human beings are emotional creatures. We don’t always act in rational ways. Our psychological makeup has a big impact on what we do with our money and how we ultimately manage what comes in and leaves our lives. This is where it gets difficult for many.
If you have self-esteem issues, managing money will probably be difficult. If you are insecure, angry, egotistical, fearful, or even feeling victimized, you may very well deal with money in some really bad ways as you try to “fix” what is wrong in your life. We can be our own worst enemy.
Know thy self and learn to like who you are instead of trying to change to meet others expectations. Figuring out who you are is the first step leading you down a path of financial freedom and ultimately happiness. Believe it!