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Cape Town - Women should not overlook the importance of their emotional and psychological wellbeing in these tough financial times, warned life coach Godfrey Madanhire of Dreamworld Promotions.
The way they feel about money influences the chance of getting their financial houses in order.
Many women find themselves in a difficult financial situation. The cost of day-to-day living is constantly on the rise, many are taking a hard look at their finances, trying to cut costs.
"At its core a healthy financial lifestyle is all about your emotions and how they influence you to spend or save," explained Madanhire.
"Bad money habits learnt at a young age can for instance cause an urge to impulse shop."
At the other end of the spectrum it could also cause hoarding that deprives families of essentials like a home and food.
“It’s a self-fulfilling prophecy. If you don’t believe that you deserve a good financial life, you do things which make that belief a fact,” said Madanhire.
“How you treat money, and allow money to treat you, goes right back to your childhood."
Try this exercise
Consider your earliest memory of money.
What did you feel and learn the first time you were given money, the first time you earned money, the first time you saved money?
Those memories and feelings have a direct impact on your treatment of money right up into adulthood.
Regardless of your bank balance or how much you earn, those early memories and experiences are often the basis of your relationship with money, Madanhire explained.
“How we think and feel about money is important in understanding the way we act about money.”
Consumers live in a world driven by money. They are always being urged, encouraged and enticed to spend money.
Key to understanding how one behaves financially is understanding how your emotions drive this behaviour.
Research shows that one of the most common reasons people spend money is impulsiveness.
Marketing plays on the emotions to get consumers to buy whatever is being advertised.
"When people spend money, they are often not realising they are trying to fulfill an emotional desire. This often leads to compulsive and reckless spending,” he said.
Prior negative financial experiences, such as going into a serious debt spiral or losing your income, also have and effect on people’s feelings about money.
“If you fall into this category, you’re likely to avoid talking about money, which means you are less likely to seek financial advice,” Madanhire said.
Not about getting rich
“Once you have recognised that money is tied to your emotions, changing the negative aspects of your financial lifestyle becomes a little bit easier.”
Key to a positive financial lifestyle and any other life goal, is to set goals that are attainable.
“For instance, don’t vow to put every cent of your bonus into your savings account. It’s just not a realistic expectation and if you then spend some of the money, you’re disappointed in yourself," he explained.
"Being practical and responsible doesn’t only mean planning for the future, but knowing that enjoying your today is just as important.”
Madanhire believes that understanding that your emotional and financial health are linked is important to your overall wellbeing.
“It is not about getting rich. To achieve overall emotional and psychological stability and wellbeing, your financial life also has to be in order," he concluded.
"That means always knowing exactly how much you owe, how much you earn and ensuring there is a balance between the two that does not harm you or your family.”
- Fin24
* Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts
The way they feel about money influences the chance of getting their financial houses in order.
Many women find themselves in a difficult financial situation. The cost of day-to-day living is constantly on the rise, many are taking a hard look at their finances, trying to cut costs.
"At its core a healthy financial lifestyle is all about your emotions and how they influence you to spend or save," explained Madanhire.
"Bad money habits learnt at a young age can for instance cause an urge to impulse shop."
At the other end of the spectrum it could also cause hoarding that deprives families of essentials like a home and food.
“It’s a self-fulfilling prophecy. If you don’t believe that you deserve a good financial life, you do things which make that belief a fact,” said Madanhire.
“How you treat money, and allow money to treat you, goes right back to your childhood."
Try this exercise
Consider your earliest memory of money.
What did you feel and learn the first time you were given money, the first time you earned money, the first time you saved money?
Those memories and feelings have a direct impact on your treatment of money right up into adulthood.
Regardless of your bank balance or how much you earn, those early memories and experiences are often the basis of your relationship with money, Madanhire explained.
“How we think and feel about money is important in understanding the way we act about money.”
Consumers live in a world driven by money. They are always being urged, encouraged and enticed to spend money.
Key to understanding how one behaves financially is understanding how your emotions drive this behaviour.
Research shows that one of the most common reasons people spend money is impulsiveness.
Marketing plays on the emotions to get consumers to buy whatever is being advertised.
"When people spend money, they are often not realising they are trying to fulfill an emotional desire. This often leads to compulsive and reckless spending,” he said.
Prior negative financial experiences, such as going into a serious debt spiral or losing your income, also have and effect on people’s feelings about money.
“If you fall into this category, you’re likely to avoid talking about money, which means you are less likely to seek financial advice,” Madanhire said.
Not about getting rich
“Once you have recognised that money is tied to your emotions, changing the negative aspects of your financial lifestyle becomes a little bit easier.”
Key to a positive financial lifestyle and any other life goal, is to set goals that are attainable.
“For instance, don’t vow to put every cent of your bonus into your savings account. It’s just not a realistic expectation and if you then spend some of the money, you’re disappointed in yourself," he explained.
"Being practical and responsible doesn’t only mean planning for the future, but knowing that enjoying your today is just as important.”
Madanhire believes that understanding that your emotional and financial health are linked is important to your overall wellbeing.
“It is not about getting rich. To achieve overall emotional and psychological stability and wellbeing, your financial life also has to be in order," he concluded.
"That means always knowing exactly how much you owe, how much you earn and ensuring there is a balance between the two that does not harm you or your family.”
- Fin24
* Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts
