If you think money is about dollar and cents and things you can hold in your house or your hand, you‘re wrong. Personal finance may seem like it‘s all about the numbers, where you have to spend less than you earn, where you have to save up an emergency fund, where you have to invest in the stock market and get your 10% return; but the truth of the matter is that personal finance is more about psychology than it is about mathematics.
Everyone knows that you have to spend less than you earn, no one is so disconnected or so poorly educated that they don‘t realize how basic math works. It‘s like physical fitness, we all know what we‘re supposed to do - we just have difficulty remembering to do it.
After learning from friends and clients what money represented to them, I asked them to tell me where they thought they got those notions - what messages they have received about money and where the messages have come from.
Through our discussions we learned that there were four main sources of those myths and messages:
Family
Community/society
Media
Peers
All of the sources listed above work in combination to shape our relationship to money.
Who influenced you the most and how well did they handle there personal finances?
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