A Penny for your Thoughts

They say that it is easiest for writers to write what they know best, so I am following that piece of wisdom and writing another post about something that has come up a few times in conversations /life lately: the interaction between money and your mood.

It is my strong opinion that managing your finances is not so much a numbers/math game as it is a behavioural one.  Thus, the skills and behaviours involved in properly implementing financial planning for your future would be the same regardless of the size of your income. (In fact, there are many people who have a larger than normal income, but whose expenses equal or supersede said income – making them worse off than someone with a smaller income but better habits.)

But, what do behaviours have to do with mood? A lot! We could be fully well-intentioned on a good day, but then have a bad day and just go all out on a shopping spree or eating out to “cheer ourselves up.” Similarly, you could receive good news (perhaps a job promotion for yourself or a loved one) and want to “celebrate.” Is it really worth it, though? How does looking at that big bill the day after make you feel? You need to be really careful if you have these kinds of tendencies to not perpetuate a cycle of widespread spending and havoc.  It is okay to treat yourself every now and then – you do want to be able to enjoy that hard earned income after all – but, do it within reason.

This idea of rewarding ourselves is just one example of the relationship between mood and money though. Money and how you perceive it can weigh very heavily on various aspects of your life – including your relationships with others and your sense of self worth. For example, you may become fearful if you have a lot of debt, worried about paying your bills; or, you may be so obsessed with paying off your debts/bills that you overdo yourself working too much and isolating yourself from friends and family; another option still, you may think so highly of yourself because of your income that you choose not to associate with others who cannot maintain your kind of lifestyle.

My point here is not to judge any of these circumstances, but rather to provide just a few examples of the combination of mood, money, and behaviour. You can be “poor” and be happy, you can be “rich” and be sad; do not let social connotations affect how you perceive yourself or your money. Part of successful financial planning is helping you achieve your desired lifestyle and, generally speaking, this always includes happiness. (Who wants to plan to be depressed or angry?) So, if you are already happy in your current situation – good on you! If you aren’t, you need to work on your relationship and your perception of money before you can improve the numbers.

Here are some “food for thought” questions for you to consider. Please feel free to share your answers!

1.   Did you choose your current career because you enjoy it or because of the pay?
2.  Do you consider yourself a “saver” or a “spender”? Why?
3. Who is your money mentor? (Who in your life most inspires your own thoughts/behaviours towards money?)
4. How often do you think about money? When you think about it – what exactly are you contemplating: the balances of your accounts or the goods for which you can exchange your money?