Money and Your Emotions

Money is more than just the number in a bank account; it is deeply personal and influenced by experiences, beliefs and emotions.

Whether it’s the celebration of reaching a milestone in our finances or anxiety about debt, or even the excitement in planning for the future, this emotional relationship with money impacts more life choices than one could imagine.

To many of us, this relationship started during our childhood. Maybe we grew up where money was scarce and learnt to connect it with security and survival.

Or maybe you’ve seen a very carefree approach to money spent and this perhaps has formed an idea that money is there to enjoy, without much thought for the future.

Understanding these deep-set perceptions is the first step towards mastering your financial mindset.

Our feelings about money can help and hurt us. Positive feelings, pride after saving successfully, or attaining a financial goal, for example, could reinforce good habits.

Negative feelings such as fear, guilt and overconfidence could lead to problem behaviour.

For example, not taking risks may prevent you from investing in opportunities for growth, while impulsive spending linked to excitement or stress could derail even the best financial plans.

One such emotional pitfall is avoidance.

Given a choice between financial uncertainty or debt, some people would rather wait, hoping the problem would cure itself.

The thing with avoiding financial issues is that it often compounds them, leading to more stress later on.

Overcoming this requires a change in mindset, from one of avoidance to one of action – even if it only involves small steps at first.

It all starts with setting clear, achievable financial goals.

Also, defining what financial success means to you – be it saving for a child’s education, investing in a home, or planning for retirement.

These become less daunting if broken down into smaller steps that ensure progress consistently.

Another way to overcome emotional biases is by working with a trusted financial adviser.

Advisers act as impartial guides who help you make decisions based on data and strategy, not on impulse or fear.

They are able to bring clarity in helping to understand the risks, seize opportunities and make financial decisions that better align with your long-term vision.

It’s also important to regularly review your financial plan, life circumstances, markets and personal goals change. Your mindset also needs to adapt accordingly.

By setting aside time to reflect on both your finances and your emotional relationship with money, you’ll be better equipped to make decisions that serve your future.

Remember, financial success is about more than just a figure; it’s about how you feel about your money and the sense of control and confidence you get from it.

As your feelings and financial goals start to align, you’re not just managing money, you are empowering yourself to build the life you have envisioned.

Take responsibility for your financial psyche now.

The emotional understanding of money is not a step to better decisions, but a starting point towards a future full of stability and opportunities.

• Hileni Amadhila is a senior public relations, stakeholder and communications consultant at Old Mutual Namibia.