Psychology of Money: How to create and build a Wise Mindset

 

Wealth is what you don't see. So wealth is created by suppressing what you could buy today in order to have more stuff and more options in the future". 

Up until now, I know there's people that having a hard time with money because of their emotional decisions, and beliefs. When it comes to the psychology of money, it refers to behaviors, attitudes and emotions that can shape their decisions. There's also beliefs and messages about money that we received or learned from our early age, but it's whether be good or bad that could affect our knowing of wealth and also can lead us to fear of spending. 

When it comes to understanding money, there's a role of emotion that is can tied to negative emotions like fear, anxiety, or pride and fear of losing money can lead to cautious decisions. That's why we need wise money management means of understanding of our emotion can affect and make a impact in our decisions. 

There are a lot of principles that could align with a very good approach to handle money:

• Personal Finance:  Try to develop good money habits as saving regularly, spending mindfulness and planning in long term.

• Financial Independence:  Building assets, trying to maintain low liabilities, and reduce dependence.

• Time and Patience:  Patience is always the key to build wealth.

• Avoid Comparison:  In today's world of social media, you could see that is easy to compare financial situations to other. However you should not worry about how others doing than yourself. A wise mindset should avoid comparison, recognizing that each one's journey is unique.

• Financial Education: Teaching people the principles of managing their money. The more you learn about money, the more knowledge you learned and the more empowered you become to make smart financial decisions.

• Generosity: can also be a key aspect of financial freedom, when it comes to through charity, helping others or investing. 

  

• The Danger of Comparison: Don't compare your financial situations to others, everyone's financial journeys are different. So focus on your own and set goals based on your values, not the expectations of others.

• From Scarcity to Abundance: To those that have a scarcity mindset that see money as limited which lead to fear and anxiety. But to those that must have a mindset of abundance that can see the opportunities everywhere and believe that with effort can lead to approach money with a sense of optimism.

To have a wise mindset about money is not about hoarding wealth or avoiding risks. it's about creating a mindful and balanced aware relationship with your finances. So as long you're creating long term goals and educating yourself and also being generous, you can build a life of financial freedom and peace of mind.