Comments on: The Psychology of Money http://www.milliondollarjourney.com/the-psychology-of-money.htm Building Wealth through Saving and Investing Sun, 21 Mar 2010 00:57:57 -0400 http://wordpress.org/?v=abc hourly 1 By: paulette http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-49362 paulette Sun, 24 Aug 2008 14:25:12 +0000 http://www.milliondollarjourney.com/?p=621#comment-49362 Pressure is always part of us. Handling it is part and the best things that we could do. Pressure is always part of us. Handling it is part and the best things that we could do.

]]> By: Rob Viglione http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-49096 Rob Viglione Thu, 21 Aug 2008 21:33:48 +0000 http://www.milliondollarjourney.com/?p=621#comment-49096 I am reminded of "Francisco's Money Speech" in Ayn Rand's "Atlas Shrugged." I recommend looking it up and reading it for yourself, but here's my favorite part: "Money will not purchase happiness for the man who has no concept of what he wants: money will not give him a code of values, if he's evaded the knowledge of what to value, and it will not provide him with a purpose, if he's evaded the choice of what to seek." I am reminded of “Francisco’s Money Speech” in Ayn Rand’s “Atlas Shrugged.” I recommend looking it up and reading it for yourself, but here’s my favorite part:

“Money will not purchase happiness for the man who has no concept of what he wants: money will not give him a code of values, if he’s evaded the knowledge of what to value, and it will not provide him with a purpose, if he’s evaded the choice of what to seek.”

]]> By: Mike http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-49079 Mike Thu, 21 Aug 2008 19:44:09 +0000 http://www.milliondollarjourney.com/?p=621#comment-49079 I'd argue the psychology of money is directly intertwined with the psychology of success. The more investment you make, the great the payout. Invest money into many different types of stocks, funds, etc., and you increase your chances of return because your are diversified. With the brain, you can invest you energies into certain things like meditation, self affirmation, and learning, that will payoff in the form of a strong, focussed, and driven mind. The results are staggering.. good book for this here actually... www.readtheanswer.com/index.php?RTA=web2 I’d argue the psychology of money is directly intertwined with the psychology of success. The more investment you make, the great the payout. Invest money into many different types of stocks, funds, etc., and you increase your chances of return because your are diversified. With the brain, you can invest you energies into certain things like meditation, self affirmation, and learning, that will payoff in the form of a strong, focussed, and driven mind. The results are staggering.. good book for this here actually… http://www.readtheanswer.com/index.php?RTA=web2

]]> By: Cannon_fodder http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-49043 Cannon_fodder Thu, 21 Aug 2008 13:36:20 +0000 http://www.milliondollarjourney.com/?p=621#comment-49043 Very interesting article and some points brought a new perspective. What does it mean when a person gets more satisfaction by saving a lot of money when buying something versus the purchase and ownership of the item itself? Very interesting article and some points brought a new perspective.

What does it mean when a person gets more satisfaction by saving a lot of money when buying something versus the purchase and ownership of the item itself?

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-49034 FrugalTrader Thu, 21 Aug 2008 12:26:39 +0000 http://www.milliondollarjourney.com/?p=621#comment-49034 CD, i'm not sure about actual percentages, but it really depends on the person the choice being made. For me, since i'm fairly analytical, i'm a numbers guy. But for most i'm sure, the psychological factors play a huge role. I would say 60% (or higher) is a good range. CD, i’m not sure about actual percentages, but it really depends on the person the choice being made. For me, since i’m fairly analytical, i’m a numbers guy. But for most i’m sure, the psychological factors play a huge role. I would say 60% (or higher) is a good range.

]]> By: Just Getting Started http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48997 Just Getting Started Thu, 21 Aug 2008 06:23:22 +0000 http://www.milliondollarjourney.com/?p=621#comment-48997 Money can't buy happiness, but it does buy everything that makes me happy. Money can’t buy happiness, but it does buy everything that makes me happy.

]]> By: IanM http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48993 IanM Thu, 21 Aug 2008 04:20:54 +0000 http://www.milliondollarjourney.com/?p=621#comment-48993 Okay so I get it, money is an important part of life and a stressful subject for most people. Our pre-conceptions, what we learned during childhood, how much we got, etc, directly effects our subconcious and often concious reactions to money issues... so what? It's the same as any other aspect of life that comes up constantly. Relationships, work, hobbies, whatever. No matter what, there's going to be alot more to it than meets the eye. Often completely different reactions from completely different people. The important thing to remember about money is that it really does represent everything we own. Everything we have. Even our own time. Treat it with care, and don't let your emotions, or preconceptions, control any decision making on the subject. Okay so I get it, money is an important part of life and a stressful subject for most people. Our pre-conceptions, what we learned during childhood, how much we got, etc, directly effects our subconcious and often concious reactions to money issues… so what?

It’s the same as any other aspect of life that comes up constantly. Relationships, work, hobbies, whatever. No matter what, there’s going to be alot more to it than meets the eye. Often completely different reactions from completely different people.

The important thing to remember about money is that it really does represent everything we own. Everything we have. Even our own time. Treat it with care, and don’t let your emotions, or preconceptions, control any decision making on the subject.

]]> By: Gates VP http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48947 Gates VP Wed, 20 Aug 2008 19:22:15 +0000 http://www.milliondollarjourney.com/?p=621#comment-48947 <b>Moneygardener</b>: <i>Money likely causes 80% of the stress in life, yet people never want to address their financial health.</i> Of course, it's still chicken & egg, which comes first? To pull out the old weight loss analogy, is it eating right, running getting enough sleep, reducing overall stress? My experience has been that they're all related and you have to cyclically make these improvements. In this case, people who don't want to address financial health often don't want to address the 50 other underlying problems causing those financial health issues. And humans can't really address 50 at a time anyways, at best we can manage 2 or 3. But Cara does capture something essential here, which is simply that your ability to manage your life and you ability to manage your money are one and the same. Thank you Cara. Moneygardener: Money likely causes 80% of the stress in life, yet people never want to address their financial health.

Of course, it’s still chicken & egg, which comes first? To pull out the old weight loss analogy, is it eating right, running getting enough sleep, reducing overall stress? My experience has been that they’re all related and you have to cyclically make these improvements.

In this case, people who don’t want to address financial health often don’t want to address the 50 other underlying problems causing those financial health issues. And humans can’t really address 50 at a time anyways, at best we can manage 2 or 3.

But Cara does capture something essential here, which is simply that your ability to manage your life and you ability to manage your money are one and the same. Thank you Cara.

]]> By: Canadian Dream http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48939 Canadian Dream Wed, 20 Aug 2008 18:06:48 +0000 http://www.milliondollarjourney.com/?p=621#comment-48939 It's rather ironic we PF blogger focus a lot on the numbers when often the psychology is more important for the average person. Perhaps that is why JD over at Get Rich Slowly is doing so well. I actually read an interesting column the other day in the paper which an advisor pointed out in his work that decisions about money were 60% psychology based and 40% on the numbers. FT and Cara, do you agree or what are your %? Tim It’s rather ironic we PF blogger focus a lot on the numbers when often the psychology is more important for the average person. Perhaps that is why JD over at Get Rich Slowly is doing so well.

I actually read an interesting column the other day in the paper which an advisor pointed out in his work that decisions about money were 60% psychology based and 40% on the numbers.

FT and Cara, do you agree or what are your %?

Tim

]]> By: dc http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48934 dc Wed, 20 Aug 2008 17:19:44 +0000 http://www.milliondollarjourney.com/?p=621#comment-48934 Great post. I find the emotional aspects of money fascinating and discouraging at the same time. On one hand, I feel great when I make what I think is a wise financial decision - paying down debt for example. It helps re-affirm that I am progressing in my goals towards financial freedom. On the other hand, it is far too easy to compare yourself to others based on monetary or material things. I find it disheartening when finding out that a colleage makes more than I do or that my neighbor has a nicer house than I do. In a lot of cases, I am better off if I can shut out the noise of knowing what someone else has or earns and just focusing on me versus my goals. Easier said than done though. Great post. I find the emotional aspects of money fascinating and discouraging at the same time.

On one hand, I feel great when I make what I think is a wise financial decision – paying down debt for example. It helps re-affirm that I am progressing in my goals towards financial freedom.

On the other hand, it is far too easy to compare yourself to others based on monetary or material things. I find it disheartening when finding out that a colleage makes more than I do or that my neighbor has a nicer house than I do. In a lot of cases, I am better off if I can shut out the noise of knowing what someone else has or earns and just focusing on me versus my goals. Easier said than done though.

]]> By: moneygardener http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48932 moneygardener Wed, 20 Aug 2008 16:47:02 +0000 http://www.milliondollarjourney.com/?p=621#comment-48932 Money is a fascinating thing/concept/tool in this world. Most people are working away every day in order to obtain money, but few people ever discuss money. Money likely causes 80% of the stress in life, yet people never want to address their financial health. Money is a fascinating thing/concept/tool in this world. Most people are working away every day in order to obtain money, but few people ever discuss money. Money likely causes 80% of the stress in life, yet people never want to address their financial health.

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48917 Dividend Growth Investor Wed, 20 Aug 2008 13:28:06 +0000 http://www.milliondollarjourney.com/?p=621#comment-48917 I think that for most people the money subject is a taboo. Parents seldom talk about money to their kids, although they should have. Money is also a quantifyiable way to prove that you are worth more or less than the other guy/gal. I think that for most people the money subject is a taboo. Parents seldom talk about money to their kids, although they should have.
Money is also a quantifyiable way to prove that you are worth more or less than the other guy/gal.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-psychology-of-money.htm/comment-page-1#comment-48914 FrugalTrader Wed, 20 Aug 2008 12:39:34 +0000 http://www.milliondollarjourney.com/?p=621#comment-48914 Thanks for the great post Cara. Question, what would you suggest on how to get past negative beliefs about money? I'm also a big believer that being wealthy is all in the mindset. Thanks for the great post Cara. Question, what would you suggest on how to get past negative beliefs about money? I’m also a big believer that being wealthy is all in the mindset.

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