The Complex Psychology of Finances and the Psychology Behind Our Decisions

Jan 25, 2024


Few aspects of life wield as much influence over our decisions, emotions, and well-being as money. This goes beyond the mere exchange of currency; it intertwines with our thoughts, behaviours, and relationships. In this article, we delve into the labyrinth of money's complex dynamics and the psychology behind our financial behaviours, sharing personal stories that shine a light on the often-hidden influences shaping our attitudes towards money.

Understanding Subconscious Money Stories:

Money stories are the tales we carry from our past, often instilled during childhood (from caregivers who inherited stories from THEIR past experiences), significantly affecting our relationship with finances. These stories can be narratives of scarcity, abundance, guilt, or fear, subtly guiding our decisions throughout our lives.

The Scarcity Mentality

Meet Sarah, a successful professional who, despite her accomplishments, finds herself clenching her wallet at the thought of spending. Raised in a household where money was always tight, Sarah internalised a scarcity mentality. This deeply ingrained belief influences her even in moments of financial comfort, making her hesitant to enjoy the fruits of her labour.

The Dichotomy of Giving and Receiving:

One intriguing aspect of money psychology is the interplay between giving and receiving. The emotions tied to these actions can be vastly different, unveiling intricate layers of our subconscious.

The Power of Giving vs Burden of Receiving

John, a generous soul with a history of financial struggle, discovered the transformative power of giving. Donating to causes he cared about not only provided a sense of fulfillment but also shifted his mindset. However, the dynamics change when he is on the receiving end. Feelings of unworthiness and guilt surface, illustrating the nuanced psychology surrounding money exchanges.

Conversely, Jane, an individual accustomed to financial abundance, finds herself burdened when receiving assistance. Despite her capability to give generously, the act of accepting help triggers feelings of vulnerability and dependency. These conflicting emotions underscore the intricate dance of giving and receiving in the realm of money.

Chasing Dreams or Running from Fears:

Our aspirations and fears are intricately woven into our financial behaviours. The pursuit of financial success can be driven by a genuine desire to achieve dreams or, conversely, by a subconscious attempt to escape deep-seated fears.

Mark, a visionary entrepreneur, channels his energy into building a successful business. His motivation stems from a passion for his craft, reflecting a healthy approach to financial pursuits. However, Lisa, who, haunted by childhood memories of financial instability, becomes an obsessive saver. Every cent saved serves as a shield against the fears of scarcity, resulting in a life constricted by anxiety and an inability to savour the present.

Balancing the Scales: Responsible Stewardship vs. Hoarding:

The concept of responsible stewardship revolves around the mindful management of money, ensuring its utility in achieving life goals. However, this virtuous approach can tip into an extreme—hoarding, where the accumulation of wealth becomes an end in itself.

Michael, a financially responsible individual, adeptly navigates the delicate balance between enjoying life and securing his future. His journey showcases the art of responsible stewardship, where financial decisions align with broader life goals. Contrastingly, Emma, haunted by memories of financial struggle, clings tightly to her wealth. The fear of losing financial security cripples her ability to enjoy life, underlining the perils of hoarding money as a response to past traumas.

Purpose, Abundance, and Transformative Change:

The journey towards a healthier relationship with money often intersects with one's life purpose. Aligning financial pursuits with a deeper sense of purpose can bring about transformative change, transcending the limitations imposed by past narratives.

David, after years of grappling with his financial identity, discovers a profound purpose tied to his skills and resources. Realising that wealth can be a tool for positive change, he undergoes a transformative journey, where money becomes a means to impact lives rather than a source of internal conflict.

Embracing Abundance:

Abundance, often misconstrued as a materialistic pursuit, takes on a profound meaning when viewed through the lens of purpose. True abundance goes beyond wealth accumulation; it encompasses a rich tapestry of experiences, relationships, and personal fulfillment.

The Role of Re-MIND Institute

In the intricate dance of money dynamics, seeking professional guidance becomes paramount. The Re-MIND Institute provides nuanced insights and strategies to navigate the intricate landscape of money psychology.


For those seeking a deeper understanding of the psychology behind money, Episode 41 of the Re-MIND Institute Podcast offers a rich discussion. Tune in to glean insights, personal stories, and expert perspectives that unravel the complexities of money and its impact on our lives.


Our relationship with money is a multifaceted tapestry woven from personal stories, societal influences, and individual aspirations. Recognising the intricate dance of financial behaviours and understanding the underlying psychology is the first step towards transformative change. By embracing purpose, navigating subconscious money stories, and seeking expert guidance, individuals can embark on a journey towards a healthier, more fulfilling relationship with money.