Financial experts or advisors focus on financial intelligence based on money management, investments, etc. In other words, they focus on ‘Money IQ’ but they often ignore the fact that there is a big connection between our emotions and the way we deal with money. Our decisions are affected by the emotions we have about money. In other words, our ‘Money EQ’ Being able to manage your emotional state around money is directly related to our financial success.
Financial decision making is a two step process:
Step 1: Money EQ- understanding emotions for what they are, instead of letting them drive our actions. Understanding and processing emotions while making financial decisions can prevent us from rash decisions especially in tough situations. If we aren’t emotionally stable, we make wrong decisions out of fear or anger.
Step 2: Money IQ- using our financial knowledge for making strategic decisions. By blending these two aspects (EQ and IQ) — one can make more informed and thoughtful decisions.
9 Ways to boost our Money Mindset (Money EQ):
➢ Express appreciation: Appreciate money coming in and money going out. The human mind cannot focus on two things at a time so if we focus our attention on appreciation, we won’t have the mental space for worries.
➢ Feel Rich: Richness is a feeling and it has nothing to do with how much amount of money we have. Everyone has their own perception of what amount/number defines being rich and that amount/number is different for everyone.
➢ Have a happy healthy relationship with money: Enjoy money. Enjoying earning it, enjoy spending it. While spending money, give thanks to money for allowing you to buy the comfort you desire.
➢ Be in love with money: There’s a difference between loving money and being greedy for money. If you love something it’ll love you back and come to you easily. Being truly in love with money and success is feeling happy seeing it even for someone else. The day we are capable of being happy for someone else’s success and prosperity is when we will be truly in love with success and money. Most of us feel jealous of others success and prosperity, which gives rise to the feeling of lack.
➢ Believe in abundance: There is enough for everyone. Trust in the flow of money.
➢ Don’t save money out of anxiety: Save money for your future (for post-retirement, for a rainy day, etc.) but don’t do it out of fear of some hypothetical future problem that focuses on financial intelligence based on money management, may require a crazy amount of money. Don’t live in the fear that you might not have enough saved for the future.
➢ Be Likeable: Likeable people attract money naturally.
➢ Identification and realization: Identify the negative beliefs you have about money and trace it back to your past to find out why you have those beliefs. Review your current financial situation; it might be very different from the time that these beliefs were formed. Realize that your current situation is different and doesn’t require you to have those negative beliefs.
➢ Create a positive flow of money energy: Donate money to help others in whichever capacity. Always give extra in terms of value. It doesn’t necessarily have to be in form of money, it could be doing little extra work than what you are paid for, giving away something complimentary along with your product/service, etc.