The psychology of money

[pwd72s]

https://www.collaborativefund.com/blog/the-psychology-of-money/

from the piece:

The finance industry talks too much about what to do, and not enough about what happens in your head when you try to do it.

This report describes 20 flaws, biases, and causes of bad behavior I’ve seen pop up often when people deal with money.

More:

3. Rich man in the car paradox.

When you see someone driving a nice car, you rarely think, “Wow, the guy driving that car is cool.” Instead, you think, “Wow, if I had that car people would think I’m cool.” Subconscious or not, this is how people think.

The paradox of wealth is that people tend to want it to signal to others that they should be liked and admired. But in reality those other people bypass admiring you, not because they don’t think wealth is admirable, but because they use your wealth solely as a benchmark for their own desire to be liked and admired.

This stuff isn’t subtle. It is prevalent at every income and wealth level. There is a growing business of people renting private jets on the tarmac for 10 minutes to take a selfie inside the jet for Instagram. The people taking these selfies think they’re going to be loved without realizing that they probably don’t care about the person who actually owns the jet beyond the fact that they provided a jet to be photographed in.

The point isn’t to abandon the pursuit of wealth, of course. Or even fancy cars – I like both. It’s recognizing that people generally aspire to be respected by others, and humility, graciousness, intelligence, and empathy tend to generate more respect than fast cars.

[Seahawk]

Great article, Paul.

I ran through it quickly waiting for my sammich () but 9 and 10 are golden.

The one benefit of the CV-19 months has been how much income people are saving not pursuing frivolity.

Real savings.

[kevin993]

Anything Morgan Housel writes is worth reading.

[Sooner or later]

Good read.

[pavulon]

Originally Posted by pwd72s

https://www.collaborativefund.com/blog/the-psychology-of-money/
3. Rich man in the car paradox.

When you see someone driving a nice car, you rarely think, “Wow, the guy driving that car is cool.” Instead, you think, “Wow, if I had that car people would think I’m cool.” Subconscious or not, this is how people think.

Good article. However, upon observing a great car, the person driving it is last (if at all) on my list of thoughts or considerations. Anyone else?

[sugarwood]

People with money tend to downplay it.
People without money pretend to flaunt it.

[jyl]

Originally Posted by sugarwood

People with money tend to downplay it.
People without money pretend to flaunt it.

Yup. Wealthiest guy I personally know pretty well (est $250 MM) was complaining during the heat and smoke this summer that his house doesn’t have AC. But his Toyota does.

[KFC911]

There's money and then there's real money. I dunno about either, and just leave the psych stuff to Tabby

[GG Allin]

Grace Groner from what I can gather never had to make a mortgage payment it in life. That certainly helps.

[Captain Ahab Jr]

The psychology of money is easy....

Some people have more than you, some people have less than you, secret is be content with what you have, that's the bit too many people can't get their head around

[gregpark]

^ how true is that

[LWJ]

Fantastic!!!

[strupgolf]

I'm not rich, but I'm very comfortable. Wake up each day not having a worry in the world. I just wish everyone could wake up the same way, each day every day. The world would be so much more with peace everywhere.

[Bill Douglas]

Originally Posted by sugarwood

People with money tend to downplay it.
People without money pretend to flaunt it.

My thoughts exactly.

there s a suburb around here called Seatoun where people run themselves ragged financially to impress the neighbours. It proves they rate the neighbours more highly than themselves.

I don't care too much about certain groups, and I get a bit of a giggle when I see how they misread me.

[Por_sha911]

There is a reason that advertising works so well. People desire to be the person driving the sleek new car.

I have found that money don't buy happiness but there are very few deliriously happy broke people. True peace and joy is when you can use the money as a tool rather than have it own you. Those who worry about needing more or having more than someone else are rarely at peace.

[Hard-Deck]

I really like #5: Anchored-to-your-own-history bias: Your personal experiences make up maybe 0.00000001% of what’s happened in the world but maybe 80% of how you think the world works.

[Shaun @ Tru6]

Sheryl Crow said it well, It's not having what you want, it's wanting what you've got.

In the last 5 years I've changed from wanting money for myself to wanting money to effect social change. It's also really nice living a minimalist life that emphasizes experiences more than things.


Such a great song. :35 on

[cabmandone]

Originally Posted by Captain Ahab Jr

The psychology of money is easy....

Some people have more than you, some people have less than you, secret is be content with what you have, that's the bit too many people can't get their head around

If I was content with what I have, I wouldn't be self employed.

[Rot 911]

Originally Posted by jyl

Yup. Wealthiest guy I personally know pretty well (est $250 MM) was complaining during the heat and smoke this summer that his house doesn’t have AC. But his Toyota does.

That is just stupid. There’s a difference between living modest means and being a miser. If I had $250 million I think I would squander a little bit on AC for the house.

[Steve Viegas]

Originally Posted by Rot 911

That is just stupid. There’s a difference between living modest means and being a miser. If I had $250 million I think I would squander a little bit on AC for the house.

Well, that is just the first $10K, then you might want to add a pool,
take a vacation, etc. It is a slippery slope, and THEN, you might only be the third wealthiest person JYL know...you don't want to go there