If you’ve ever found yourself daydreaming about what you’d buy if you won the lottery or get a big tip here on read.cash, you already know how powerful money can be.
Everyone has their own idea of what money means to them.
However the psychological effects of money have been found to be universal, predictable, and consistent.
In this article, we’ll explore the psychological effects of money and how it motivates you (okay not you alone but all of us).
The psychological effects of money
Most of us have long accepted that money can make us more excited, happier, and fulfilled.
Psychologists have known that for centuries. Money can make us feel more useful, loved and deserving.
Money can help us invest in relationships, projects, and our futures. People have done studies to examine these effects.
They’ve found that people who feel financially secure are happier and more satisfied with their lives.
. • . Money motivates us to be healthier and happier When at work, I’m usually focused on work.
But sometimes, I will find myself doing something for money instead. I might make more sales, or finish a project more quickly (fiverr).
When this happens, my mind is occupied with two things: money and work. I feel more anxiety and more pressure to perform (in a good way ).
Money and social status
One effect of money that psychologists are studying is how it makes people identify with each other.
As people become wealthier, people become more interested in their relationships with other rich people.
This includes everything from Facebook Likes, to who their friends are and what they do. More affluent people report more social connections.
The effect is that relationships with wealthy people (the rich) are more important to people. In other words, people try to maintain connections with wealthy people, even when it’s not beneficial for them.
In psychology, this is called “self-enhancement.” It’s common, especially with younger people, for them to put more effort into their social relationships instead of focusing on their financial relationships.
How money motivates us
Sometimes, when we receive a huge sum of money, we go through a range of emotions. We might be overjoyed, overwhelmed, anxious, or overwhelmed again. Maybe we get a promotion and feel like we’re rich. Maybe we’re excited about our financial goals.
These emotions may last just a few minutes or a few hours. They’re transient, and in most cases, they don’t last forever. If we keep getting money regularly throughout our lives, we may develop a routine of feeling happiness. If you’re in a rut of feeling poor, then your emotions are likely to fluctuate wildly.
The research on the psychological effects of money indicates that we don’t always feel the same way about money.
Money and envy
After the first five minutes of meeting someone, we’re familiar with their car, house, and personal traits. But the first thing we notice about a potential romantic partner is how much money they make.
This seems self-explanatory, but until recently psychologists didn’t understand why this is the case. But new research from the University of Chicago shows that money does a lot more than just show your income.
It can also give you a feeling of social status. This, in turn, is related to envy.
More money = more emotions and more emotions = more envy
The bottom line: it’s natural to feel jealous when you look at rich people. But it’s important to not spend too much time thinking about it. Instead, focus on your own life goals, and your own version of what success is.
Focusing on your own success, rather than comparing yourself to others, can help you gain clarity about what you’re aiming for in life.
Money and happiness
Our basic psychological needs for survival and safety motivate us to get money.
When you’re trying to stay alive, you have to do everything you can to protect yourself. Because you can’t just stay put. You have to survive in the wild. And if you can just stay alive, you’ll be able to provide for yourself as you get older.
Money allows you to take care of your basic needs and allows you to take care of yourself in the future, if you get sick or injured. In other words, money is essential for survival and safety.
But once you get more money than you can afford to spend or save, there’s a big problem. When you have too much money, you begin to spend it all. And it doesn’t make any sense to spend your money on nice stuff you don't even need.
My Verdict
To get the most out of this article, you should get the psychology of money ( PDF or get the book from Amazon ) by reading as many pages as you can. You’ll quickly see how consistent, studies over the past century have found that our psychological reactions to money are not just “hippie behavior.”
The many psychological and behavioral effects of money are not just a hippie thing. In fact, they’re scientific fact.
Thanks for Reading..
Cheers!!!
Money affect us in various ways in life but the bad effect we should concern about is the arrogant aspect of it. This is a negative behaviour we shouldn't allow money to drives us to.