How money affects the psyche of individuals

We are taught from an early age that we have to understand the value and the role money plays. Most people go through this stage. You drop a tooth and get 20 shiny pennies under your pillow as a reward. Maybe wash your parents' car for a couple of bonuses (but now you realize it was well below minimum wage). 

And as adults, we get the impression that buying a lighter laptop or a pair of squishy shoes will change our mood. 

Money and biological interactions 

A study of children between the ages of 3 and 6 showed that even dealing with money affects our behaviour. 

When exposed to money, children were less inclined to be helpful or generous. 

On the flip side, they were better able to persevere and put more effort into the challenging tasks they were given. 

Spending money makes us feel happier 

This may explain the payday hike that seems to be sweeping the office at the end of the month.

And the chemical reactions don't stop there. The psychological act of parting with money for something you've had your eye on for a while also affects our psyche. 

“The rush we feel when we buy something. It helps us feel happy, as if we have achieved something—much like a reward.

Likewise, when we worry about our finances, our bodies react subconsciously (and consciously), going into fight-or-flight mode as a coping mechanism for perceived stressors. 

"Your body will physiologically react the same way whether you're facing a scary movie, a pressing deadline, or financial troubles." 

“Stress hormones will be released, your heart rate will increase rapidly, your adrenaline and cortisol levels will rise, your blood pressure may rise and your breathing may accelerate. 

“We know that in short periods of time, elevated stress hormones can be really helpful for, say, meeting a deadline (or getting to the end of that movie).

Is our personal relationship with money easier to navigate? 

Understanding how financial imbalance affects a person's relationship is essential if you are struggling in your relationship or if you are not finding balance in your relationship to be fair enough there regardless of the points we will cover here: 

1. Financial imbalance can make you feel less than 

When there's a financial imbalance in a relationship, one person can start to feel inadequate, especially if you're not the one generating the income. When you can't bring as much financial gain to the table, you may feel as though you're slacking off or falling behind in the effort department. 

While this isn't true or is the case in any way (especially since there's more than money to fulfillment in a relationship), it's important to identify your feelings regarding your money and the financial situation you're in with your partner. 

2. Arguments can grow 

Relationship finances can cause significant arguments, such as if you are struggling financially or are experiencing financial stress due to a job loss or even unforeseen circumstances. Knowing how to properly handle financial stress is essential to maintaining an ongoing relationship. 

Arguing about money is never fun, and it can quickly deteriorate any relationship. If you find yourself aggravated by the following situations, it might be time to sit down and have a discussion about your money and how you spend it? You and your partner must agree on the following: 

- Keep up with chores, supplies and groceries 

- When you are trying to plan a trip or travel, but you are unable to do so due to current financial constraints. It is better to convince the life partner that this trip cannot be undertaken due to financial constraints. 

- Anytime you've been discussing short- and long-term financial goals, particularly what you want your finances to look like in the future with your current partner 

3. It might cause you to feel unhappy 

If you are tired of arguing over money or if you are unable to see the financial situation in your relationship changing any time soon, this may cause you to feel extremely unhappy. Feeling unhappy in a relationship may eat away at the genuine love and connection you have with your current partner, even if you do not blame them for the issue at hand. 

When you are struggling mentally due to your financial stress, it is imperative to communicate your needs to your partner to attempt to remedy the problem as quickly as possible. Some ways to tell if you are unhappy or in need of time to reflect on your relationship include: 

You find yourself increasingly stressed, anxious, and worried any time you think of money or your financial situation 

You find it difficult to plan for purchases, investments, or trips that were once a source of joy to you 

If you feel growing feelings of resentment and anger that are directed towards your partner due to monetary struggles and financial woes 

If you are feeling increasingly frustrated anytime you are near your partner due to growing resentments and a lack of communication regarding your financial struggles 

4. Causing you to feel guilt 

In some cases, you may also begin to feel guilty if you are unable to contribute to your relationship financially as much as the other person. If your partner is unable to contribute, he or she may also begin to harness feelings of guilt. When you feel guilt, you may find it difficult to live to your fullest potential, as you will always have a mental and emotional block standing in your way.

5. It may cause you to focus on the negative 

When there is a financial imbalance in a relationship, partners can become increasingly emotionally distant and separated. If you begin to feel resentment regarding finances, spending, or even the amount of income you and your partner are earning, you are more likely to continuously focus on the negative. 

Focusing on negative elements of life can quickly become draining, causing a rift between you and your partner. If you find yourself becoming increasingly negative and focused on anxieties and worries regarding finances, it may be time to take a step back to reevaluate your own wants and needs. 

How to deal with a financial imbalance in a relationship?

1. Identify core problems 

The first step to take when you want to address a financial imbalance in a relationship is to take a step back to identify the core problems that are contributing to the issues in your relationship. Take time to identify and address why you are experiencing financial stress and what it is that you can do to remedy your feelings. 

Do you feel as though you should be contributing more? Do you feel as though your partner is not earning enough money or putting enough effort into your home and relationship? In order to fix and remedy the financial imbalance of any relationship, you will need to take a complete and honest inventory of the situation at hand. 

2. Define your relationship priorities 

Every relationship is different and unique in its own way. If you are in a relationship where money is not the most important aspect, it is important to keep this in mind. 

This is why it’s a good idea to define your relationship priorities and goals as they pertain to finances and contributions. In particular, if you find that you are bringing in more money than your partner, maybe there are other ways in which he or she can contribute to help maintain balance over time. 

What is most important to you in your relationship? Do you find financial wealth and abundance to be a top priority, or are you more concerned about the time you are able to spend with one another? Ensuring that you are compatible with your partner in terms of financial goals is also essential if you want to make a relationship last longer. 

3. Encourage open and honest communication 

One of the biggest problems in marriages and long-term relationships often stems back to a total lack of communication. When you are unable to communicate openly, honestly, and directly with your partner, you will have many more issues to deal with later on, aside from finances alone. 

For that reason, whenever you are confronted with financial strain, the best course of action begins with a conversation. Having the ability to speak openly and honestly regarding the money imbalance in your relationship as well as your own needs in relation to this can help to put you and your partner on a path that is right for you.

4. Seek financial unity 

One of the best ways to improve your relationship while minimizing the financial strain and stress you experience, including in relation to a money imbalance in the relationship, is to seek financial unity with your partner. 

Financial unity means having the ability to sit down and discuss financial woes that are bothering you or even interfering with your relationship and current way of life. Work together with your partner to help improve your financial situation and to feel as though you are both on the same page and path as one another. 

Some ways to help improve the financial unity in your relationship include: 

• Discussing your finances openly and honestly 

• Taking an inventory of your spending habits and getting to know each other’s problem areas in terms of overspending and not being frugal enough 

• Honestly discussing your plans and goals in terms of finances 

• Creating a roadmap of your financial plans and goals to help set and achieve milestones together 

• Final thoughts on dealing with money imbalances in a relationship 

Relationship finances and strains are rarely simplistic in nature, and must account for the individuals who are also involved in the relationship themselves. In a partnership, it is rare to deal with a one-sided financial relationship issue, especially if you are equally involved in paying or managing household expenses and bills.

Experiments with money can be exciting 

Among the exciting experiences of spending money “When we spend money, especially on perceived frivolity with no apparent tangible benefit, the brain is very likely to think: 'I feel less safe now because I spent a valuable resource on something other than the thing that will keep me safe. "This is a mistake" 

But while we always seem to be chasing more money to avoid these thoughts, do we all share the same motives about money and can it lead to happiness? 

While it's true that you can't go to a store and buy happiness, a 2010 study found a relationship between money and happiness. Daniel Kahneman and Angus Deaton's study looked at a US survey of 1,000 people about emotional well-being (the emotional quality of an individual's daily experience) and life experience (people's ideas about their lives). The duo found that emotional well-being and life experience are related to happiness, but only to a certain extent, and that emotional well-being only increases with annual incomes of about $75,000. 

But now a wider survey in the US in 2021 is challenging the $75,000 figure and the idea of ​​a plateau.  Matthew Killingsworth of the University of Pennsylvania found that high-income people felt better on a day-to-day basis and were more satisfied with life overall. 

Other studies have focused on world income and happiness, yielding some interesting insights.  A 2018 global sample of 1.7 million people found that what the authors call “income satisfaction” occurs at $95,000 for life satisfaction.  However, this satiety occurs later in the wealthier parts of the world, and incomes above $95,000 are still associated with lower life valuations in some parts of the world.  Income between $60,000 and $75,000 was responsible for emotional well-being. 

As the authors note, the results "suggest a degree of adaptation to happiness, and that money influences happiness by satisfying both material needs and growing desires." The study found that larger increases in income were associated with lower life satisfaction and lower levels of well-being.  The authors hypothesize that after this point, people may pursue material gain and engage in social comparisons, which may reduce well-being. 

Previous studies show a relationship between income and happiness, but the 2021 study noted that some of the differences in results may lie in how the data is collected (real-time or recall).  Also, money may be more important to some people than to others in different ways. For example, a 2021 study found a stronger correlation between income and well-being for people who equate money with success.  For these people, there was no income level associated with higher well-being than known. 

Clearly, studies generally agree on one thing: income affects happiness at least to some degree, and for some people, earning more can increase well-being and life satisfaction. 

However, income is not the only factor that affects happiness, and the same amount of income will not affect everyone's happiness in the same way.  Two things are still unclear: we don't know for sure how important money is to happiness compared to other factors, and we don't know how much money you need to be happy.  .

Money dials and our motivation for spending

Congratulations! You’ve finally decided to get serious about your finances, and you have some financial goals you want to achieve. But maybe you need some motivation for saving money. So, how do you stay motivated when it will be months or maybe years before you reach your money savings goal? 

Saving for big money goals can be a long road. According to MarketWatch, it could take someone earning $56,000 a year 77 months to save for a downpayment on a $216,000 house. It's easy to get discouraged when big dreams and goals seem out of reach. 

However, we are here to supply you with some "save money motivation" to help you reach those financial goals! (You can also check out our favorite money slogans for extra motivation!) 

Why having the motivation to save money is important? 

The fate of everyone who wants to achieve their goals is exhaustion and patience. This applies to saving money. This is why finding ways to stay motivated is key to achieving your goals. Motivation will keep you focused on what you really want! 

Maybe you've got your eye on a trip to Disney World or a fancy handbag, or maybe you're ready to finally start building your home down payment fund; Whatever your financial goal is, now is the time to work towards it with this money saving campaign! 

Save money motivation: 

1. Be specific 

One of the ways to lose motivation for saving money is by not being specific about what you want. If you're saving for a home down payment and it will be years before you have enough to move forward with your home purchase, it’s important to be specific and get clear on what you want. 

Do you want to live in the suburbs or the city? Do you want a condo or a house? Will it be a fixer-upper or move-in ready? 

The more specific you can be about what you are saving for, the more connected to the goal you’ll feel. Setting SMART goals is a great way to get crystal clear about what you wish to achieve. 

2. Know your why 

Once you are clear about what you are saving for, why is that purchase important to you? How will you feel when you reach that savings goal? What will achieving that savings goal represent? 

Reminding yourself why that savings goal is important will help keep you focused. A strong “why” will help you save money and keep that motivation high as you work towards that goal. 

Saving money is a smart money move, but alone won’t be enough to keep you motivated. Attaching a strong passionate purpose behind what you're saving for goes beyond the actual goal. It addresses the feelings and emotions of what the goal represents. 

3. Set the intention and tell others 

Setting the intention for saving money is great, but accountability is crucial. Share the goal and the plan for how you are planning on achieving the goal with those you trust. 

Along with sharing your intentions with others, sharing your progress can also motivate those who know you to achieve their own goals! 

Ask your friend, loved one, or financial coach to hold you accountable. Sharing the plan with other people is a great way to ensure you stick to it. 

Particularly for long-term savings goals, it can feel lonely when you are on the path. But sharing your progress is a great motivator for you and an inspiration to others. 

4. Create short-term milestones 

Setting goals with realistic timelines is important. However, setting weekly or daily goals for smaller milestones will allow you to track progress. 

Having a goal to save $10,000 in a year may seem out of reach, but a simple goal of reducing your daily expenses by $27.40 and saving it, will make that goal possible. 

Breaking down your big goals into smaller ones will keep you from getting overwhelmed and help you attain your goals much easier. 

5. Celebrate the wins 

Here’s a reminder to celebrate every milestone reached, including the small ones. Decide now how you’ll celebrate when you reach each one. Will you post it on Instagram to get community support? 

Reaching huge savings goals is most successful when you celebrate the wins along the way. Set yourself up to have quick wins along the way. Celebrating the first $50 saved is just as important as celebrating your first $1,000. 

6. Keep your funds separate 

Keeping your savings as a single pot of money can be tempting, but every goal should be kept in a separate account or in a different savings bucket. If you are saving for a car, keep that money separate from the money you are saving for your dream vacation trip. 

Sinking funds are a great way to save for something specific. Having separate accounts will make tracking your progress easier. 

7. Create a vision board 

Using visual cues is a great way to keep your motivation for saving money high. A vision board will remind you of what your priorities are and can be a great daily reminder. 

Whether you use scissors, a magazine, and glue or create a desktop screen saver to serve as a reminder, there is something powerful about having a photo of what you are working towards. 

8. Start a money-savings chart 

Get motivation for saving money by using a money-savings chart! Money-savings charts are printable charts that help you track money for specific goals. 

They are an excellent tool to keep you motivated. Using an app or a printable savings tracker is an easy way to track those quick wins.

Master the art of delayed gratification 

So once we look at the kinds of things we spend our hard-earned money on, how we spend it says so too. 

If you're someone who likes to be a little frugal with your money (maybe you arrive in the middle of payday and start having an impromptu drink after work or add Asos to the cart),  maybe it's time to practice the art.  gratification. 

The study looked at children between the ages of 3 and 5 and measured whether they were more likely to wait 15 minutes for a larger reward or give earlier than receive the marshmallow right away. 

The experiment was followed up with the children to see if their choice of delayed gratification affected them later in life.  Children who expected higher rewards have been shown to have higher academic achievement, lower rates of obesity, and fewer instances of substance abuse. 

Although the evidence has been repeated since the original version and shows that our social environment and experiences are key to our success in adolescence and adult life (i.e. it is not solely dependent on  our will), the theory can be applied to expenses. 

Delayed gratification takes practice 

Can we delay the reward in exchange for a bigger "return", whether it's an investment, a more expensive car or maybe our dream house if it means having to put up with a  little and say no to smaller but more feasible and profitable projects?   immediate purchases? 

It's possible to train our brains to get better at the art of delayed gratification, but it may take practice. 

Make sure your goals are realistic 

We all dream of putting down a down payment on a house in a few years if we stop with, well, everything.  But instead of saving, looking at things like investments and their returns can give you and your money a better sense of purpose, and it also practices delayed gratification.