The Psychology of Money explores how money moves around in an economy and how personal biases and the emotional factor play an important role .

1. Psychology of money mind
-T.Bhargav Reddy
Investor and financial
advisor

2. Contents
1.Basic definition
2.what is the Psychology of money
3.Studying the Psychology of money
4.why the psychology of money matters.
5.How the psychology of money effect the mental
health.
6.Emotion and money
7.Mental health and Mental illness.
8 how money changes emotions

3. Basic definition
The Psychology of Money explores how
money moves around in an economy and how
personal biases and the emotional factor play
an important role in our financial decisions, as
well as how to think more rationally and make
better decisions when it comes to money.

4. What Is the Psychology of Money?
 The psychology of money is the study of our
behavior with money.
 Success with money isn’t about knowledge, IQ or
how good you are at math. It’s about behavior, and
everyone is prone to certain behaviors over others.
Once you become aware of your tendencies, you
can harness the power of your own mind, your
thoughts and your will—and you can literally
change your life.

5. Studying the psychology of money
 I’ve been studying the psychology of money, and
over the last decade I’ve seen it play out in real life
while coaching people with their money. This stuff is
powerful, so I want you to dig in with me.
 The Psychology of Money’ is an essential read for
anyone interested in being better with money. Fast-
paced and engaging, this book will help you refine
your thoughts towards money. You can finish this
book in a week, unlike other books that are too
lengthy.

6. Why the Psychology of Money Matters
 I’ve come to value self-awareness as a tool. I need to
learn more about the way my mind works if I want to
grow. Whether we’re talking about money or life as a
whole, knowing yourself is a huge factor in creating
meaningful change.

7. How the Psychology of Money Affects Your
Decisions
 The truth is that money is just a magnifying glass—it makes
you more of who you are. If you’re kind and generous,
you’ll be even more kind and generous with money. If
you’re rude and self-centered, you’ll be even more rude and
self-centered with money. Money is simply a tool, and you
get to determine what to do with it.

8. There are hundreds of little decisions that we make
each day without even realizing it that are
influenced by the psychology of money. One
example for me is in the safety vs. Status tendency. I
naturally bend toward status. I’m more likely to
value a name-brand purse or luxury car, and I’m
more likely to find a way to justify a larger purchase
if, on some level, it makes me feel successful.

9. Emotion and money

 The most important emotions in relation to money
are fear, guilt, shame and envy. It’s worth spending
some effort to become aware of the emotions that
are especially tied to money for you because,
without awareness, they will tend to override
rational thinking and drive your actions.
 What’s there to be afraid of? The possibilities are as
varied as there are individual stories. But common
fears include the fear of not having enough, the
fear of looking stupid, the fear of provoking envy
and the fear of being exposed or humiliated

10. Mental health and mental illness

 One in three Americans is likely to experience one of the
following mental health problems in their lifetime: alcohol
use disorder, major depression, bipolar disorder or
ADHD/ADD. Each of these illnesses can have a significant
effect on personal finance.

 Excessive use of alcohol or other substances leads to poor
judgment, inattentiveness to finances, employment jeopardy
and secretiveness.

11. Family and childhood influences never end

 Every family has its own particular psychology of money.
What can be talked about, who should be in control,
what money responsibilities are assigned to what gender,
how important money is or is not.

 Additionally, there are always stories about money that
are part of a family’s identity. Maybe a serial
entrepreneur grandfather lost the family fortune,
sparking an excessive conservatism in subsequent
generations.

12. How money changes the emotions
Because money plays such a significant role in our lives, it both impacts our
emotions and is impacted by our emotions.
It impacts our emotions because we will have emotional reactions to things
that happen to us. We may feel envious of what somebody else has, anger
about something our boss did to us, sadness over losing money in an
investment, fear about what might happen to the stock markets, guilt for
getting promoted over somebody else, or shame for believing we are bad with
money.
Financial decisions can be impacted by our emotions because we may make
financial decisions or partake in other financial behaviors to elicit certain
emotions or avoid other emotions.

13. Thank you