TheAlchemist MJ

Money is more than a tool for trade, it is a reflection of our emotions, values and personal history. Managing money is rarely about math but more about mindset.

Why Is Money Emotional?

For some, Money represents safety. For others, it represents freedom, status, and even influences love. Money is tied to deeper emotional needs which is why making financial decisions can feel overwhelming or stressful. Our behaviors are driven by our beliefs developed over time.

When Does Your Money Story Start?

Our relationship with money often begins in childhood. If you grew up in a household where money was scarce, you might now either spend too little such as hoarding it anxiously or too quickly without considering long-term financial planning. If you were raised in a financially stable environment, you might feel more confident or even take the financial stability for granted.

The first step of changing your mindset is to understand your current money mindset.

Some common money mindsets include:

1. Scarcity Mindset: A belief that there is never enough. It is rooted in fear, often from past experiences of lack or instability.
2. Abundance Mindset: A belief that there is always more. It is rooted in trust and possibility.
3. Avoidance Mindset: A belief where individuals dodge money decisions or thinking about finances because they feel overwhelming, confusing or shameful.

The Role of Fear, Shame, and Status

Unfortunately, often our financial decisions are made based on what others would think. This can lead to stress in overspending to keep up or feeling shame about debt or income. The truth is: Net-worth is not self-worth. People are not their bank balances.

How to build a healthier relationship with Money

1. Track your patterns: Notice how you feel when you spend, save, invest and talk about money.
2. Get curious, not judgmental: Instead of blaming yourself for your financial mistakes, ask yourself why you made them.
3. Define what ‘enough’ looks like: To avoid endless chasing and never being satisfied with what you have, define what ‘enough’ looks like for you.
4. Talk about money: Open conversations with friends, family and even financial advisors will not only help uncover blind spots but also help learn useful financial information.

Final Thought: Money is a Mirror

“Money is a mirror” is a powerful concept in the Psychology of Money. It mirrors our emotions, beliefs, identity and boundaries. From the way our emotions change when we spend money to our boundaries in giving, lending and sharing money, our financial choices expose where our limits lie. When you view your money as a mirror, you stop judging it as “good” or “bad” and start understanding that it is a reflection of something deeper.