The Psychology of Money: 8 Ways to Improve Your Money Mindset

As the old saying goes, personal finance is ‘mostly personal and a little bit financial.’

[{"selector":"#anim-a3a1ff26-91ae-46d3-8003-58c0f4fe32b5","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-b4039359-5933-46da-b87d-71b47e3a9410","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

Long-term growth and success rely more on our habits and behaviors than complex knowledge and advanced strategies.

[{"selector":"#anim-cd4594f8-ac25-4c57-b3a2-fb52bb54d249","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-27645cb1-43d1-45a5-baa5-eb7d442265e0","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-332dfbc3-0d5c-4c7a-8dc0-754664fcca55","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3dc58a8c-0c63-4f78-b169-d81bd5b5d6c4","keyframes":{"transform":["translate3d(0px, 323.67469%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Read more

Learning a few key points on the psychology of money can go a long way to building the right mindset for prosperity.

[{"selector":"#anim-7da3701d-0898-44bd-9b4c-33ef36a4bd37","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-66139814-f231-401e-a6ef-d3d2d42cb2a1","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-cec563e6-8459-4fca-9014-682e4a0b3a7b","keyframes":{"transform":["translate3d(-140.52864%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bef4c4de-dce3-4fbc-b68e-2f2bff125a4d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d7238f69-1102-4f5e-8b69-7148252c289d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

8 Crucial Money Psychology Concepts

[{"selector":"#anim-4e5c34ef-3575-4741-85f4-b5ff576184fd","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-8f6f4ef9-4094-4f1d-a326-445205ac5736","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-60f44c00-678d-401b-b91c-400185b47798","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-081ac569-0f8e-43d1-b564-2d23e92964b2","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

Optimism bias is the natural tendency to overestimate the likeliness of positive outcomes and underestimate negative ones.

[{"selector":"#anim-c2f915f4-d5d1-4079-954f-a7723e9d6fac","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-fb9c6ec9-5d52-4355-b700-fc517a410260","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-910fbd33-a945-493c-8884-8218378b66d8","keyframes":{"transform":["translate3d(-140.35088%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-771d5508-060a-4aa0-a001-57dce875e5ec","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-20775861-6808-4fdf-ab3e-094b5feadaf1","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-0c9bea27-4ac0-4d4b-8402-12cc2c75afcc","keyframes":{"transform":["translate3d(-140.78948%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e73f1988-e1fb-496d-83e7-2a438ee9485e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cda794f4-e411-45e4-9611-761df9958a22","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

Pessimism bias, (also known as negativity bias), draws our attention away from favorable circumstances and causes us to weigh negative stimuli more heavily.

[{"selector":"#anim-b53aa53e-a455-44a8-aef8-c6837df7aaf1","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7ed60006-3370-482e-a4dd-5550da5320dc","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-8894f16d-8ba6-445d-b5bf-e421dc1d5612","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-db10ee3b-3771-4d3c-bfb1-b9ef21dc6076","keyframes":{"transform":["translate3d(0px, 197.81970%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-20125641-afa6-4857-b7d8-364aafd04de1","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-bad0590b-afc4-4f90-82f3-5ad27974e785","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

Due to hedonic adaptation, many spend most of their adult lives buying bigger, fancier, and nicer things.

[{"selector":"#anim-05d48066-475d-4ae0-beef-7fffd15ae1d2","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-dad79a2e-4ea0-438c-9994-56e169b20fb6","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-4b8d0079-cb15-4573-9acd-70140e5b9b04","keyframes":{"transform":["translate3d(133.87755%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9636d872-5592-49b4-b59b-be98fe031209","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa75f1c8-2f33-438e-bc58-dc96cbe9b0a8","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-b6d3372a-4dca-4b5d-a960-527576e6f662","keyframes":{"transform":["translate3d(-123.57143%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ffd0b49-fda7-4055-a714-d1c6028f5575","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-72f1a22a-19e8-4af1-a78b-081f0d35714b","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

The sunk cost fallacy describes the human tendency to keep doing something we have started, even if it isn’t working out.

[{"selector":"#anim-bac8448f-0629-437b-9656-86313ecefb27","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-bedf004a-151b-4cab-b52d-06fec575bb81","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-4a07d8d0-a986-465c-93fd-cf5eea9b3081","keyframes":{"transform":["translate3d(131.47411%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7ce31466-fb4a-478b-81ab-7d366c0924a2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-33b8427e-26b5-417d-b20b-abedd88aad29","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-deac4843-5122-44c1-85d5-542c36df9edb","keyframes":{"transform":["translate3d(-123.21429%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-82c2d76d-ebe3-4a69-9bb8-bb45f01cdb65","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-917bff31-a42d-4307-88de-2c0750ae96cb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

Swipe Up To Read More

[{"selector":"#anim-56076931-34ab-4677-ba7d-0fe698ec8b54","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-71280eda-5846-4542-9938-2a6eb45249ab","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

The Psychology of Money: 8 Ways to Improve Your Money Mindset

As the old saying goes, personal finance is ‘mostly personal and a little bit financial.’

Long-term growth and success rely more on our habits and behaviors than complex knowledge and advanced strategies.

Learning a few key points on the psychology of money can go a long way to building the right mindset for prosperity.

8 Crucial Money Psychology Concepts

Optimism bias is the natural tendency to overestimate the likeliness of positive outcomes and underestimate negative ones.

Optimism Bias

Pessimism bias, (also known as negativity bias), draws our attention away from favorable circumstances and causes us to weigh negative stimuli more heavily.

Pessimism Bias

Due to hedonic adaptation, many spend most of their adult lives buying bigger, fancier, and nicer things.

Hedonic Adaptation

The sunk cost fallacy describes the human tendency to keep doing something we have started, even if it isn’t working out.

Sunk Cost Fallacy

Swipe Up To Read More

Read More