This is the first principle of 10 for your review and critique. As I mentioned in a recent previous post, Financial Principles: Lighthouses that Will Never Steer You Wrong, I want to expound on 10 financial principles that are absolute and unchanging an that if applied will dramatically change your financial life. “Spending is Emotional” is Principle 1 of the 10 Money Mastery Principles.
Money Mastery Principle 1: Spending is Emotional. This means that money is more about emotions than it is about math. If spending were simply a mathematical problem, more individuals and families would not be consuming more than they should and would be far wealthier than they are. If you do not decide to systematically control your money, you will emotionally consume your future and the opportunities it can offer. Spending money almost always has a powerful emotional impact in our life, whether we realize it or not.
For example, if you just arrived home from a vacation and in your mail found a bill for your auto insurance that you no longer have money to pay, this is an emotional event. Or how about if you never have surplus money and have to use credit cards so that the balances owed keep growing? This emotional event can put stress on a marriage.
To further illustrate how emotional money can be, take the time to answer the 12 questions that follow. This assessment will help you see how you are (or are not) managing your money, which will be an extremely emotional experience. Ten points are given for each question, so choose how you are doing on each one for a possible total 120 points.
Once you have taken the assessment, I recommend learning more about how you can get in control of your emotions by learning how to systematically control your spending: contact me for a no-cost consultation, firstname.lastname@example.org, or sign up for our low-cost online program that will help you start getting in financial control today: Money Mastery Online Program.