How Does Money Help Reveal Your Inner Motivations?
Money has an emotional and psychological hold on virtually everyone in modern society. But when you ask people what their thoughts are around money, or wanting and needing more money, their answers are wildly different. Some view it as essentially, money comes, money goes, while others are much more thrifty, hanging on to every penny if they don’t need to spend it. What you do with your money is an important expression of your core values and how you view yourself and the world. It’s a big part of what makes up your inner motivations.
I’ve polled many people over the years with the question, “What’s important about money to you?”, and the most common answers are the following:
- Security, or Peace of Mind
- Freedom; Fun; and Happiness
- Independence.
Security, or Peace of Mind
This answer has topped the polls overall. When thinking about security, money is usually the first thing on your mind. The people who give this answer most likely own their own home or plan to soon, and spend most of their money on their family. They like safer investments because they want to make sure that they’re ready for anything that may affect their family’s security.
Freedom, Fun, and Happiness
For a lot of people, money means having the means to enjoy freedom, fun, and happiness. Things like international travel, living in the middle of cultural hubs, and affording expensive toys and accessories are what motivate this group. There’s not the same amount of forward-thinking – the big priority is flexibility and spontaneity. These are usually the aggressive investors. They often have little to no savings or long-term investments.
Independence
Not only does having extra money allow you to be spontaneous and feel secure, but it can also grant you independence. Financial dependence on anyone comes with strings attached. But independence means you have a reliable income and your very own nest egg. You’re free of being a burden on someone else should anything happen. You may want to be the one to make all the investment decisions, but you’re most likely better off leaving it to the pros.
By analyzing the emotional side of investing and your approach to money, you can better determine how you want to set your goals and use your money to meet them.
