How We're Very Emotional/Irrational About Money

in LeoFinance2 days ago

Guys, these examples show that we are so emotional/irrational about money and that we can hardly even help it!

This is all because of context, though. There's a particular situation you would find yourself and $20 would mean more to you, not because you are richer or poorer in that context but simply because of surrounding emotional factors or irrational factors that don't add up properly.

• Say you want to withdraw some cash, if you withdraw it using an ATM owned by a bank you don't bank with you get charged $0.45, but if you withdraw using an ATM owned by the bank you bank with you get charged $0.00. But the ATM owned by the bank you bank with is about a 15 minute walk away.

Do you know most people would make that walk to save $0.45, but these same people who'll make this walk, if you were to tell them just out of the blues that you would pay them $0.45 to walk a 15 minute distance they'll say no, that it is beneath them.

But they didn't think it was beneath them when they trekked to save that same amount.

Example 2:

• Some girl I know got gifts on her birthday, she got gold bars worth up to 7,000$ and it absolutely blew her mind. She's a rich girl and if she had been gifted 7,000$ in cash it would have meant nothing to her. She would have probably rolled her eyes. But because it was gold bars, it was totally different.

Example 3:

• One period of my life I was rich 😉, I used to have a female friend who hung out with me a lot. In the space of 9 months we hung out up to 70% of the time and hanging out meant she wouldn't have to spend a dime on food because when I eat she eats with me.

70% of 9 months is 6.3 months. This means I fed her for 6.3 months, and it means she had to keep all 6.3 months worth of feeding money. This is huge!

But guess what? She has appreciated me for things I did in the past but never mentioned the fact that I fed her for 6.3 months. Even when I brought it up once she didn't seem impressed.

But if at once I had met her and given her money for 6.3 months worth of food instead of feeding her for 6.3 months, her appreciation would have known no bounds! She would have been impressed out of her wits.

Conclusion

This is quite crazy. I'm sure a lot of people reading this can come up with a lot of examples that show stuff not adding up like this.

This is worth giving a thought, questions we should ask ourselves are: in what ways are we treating money of the same value in different ways? In what ways are we not appreciating money simply because of the form it came in when we would have appreciated it way more if it came in another form?

In what ways are we not putting an effort to make or save money simply because of the form when we would put as much effort or even more to make that same amount or even less if it was only in a different form?

We have to think of these and become more rational and less emotional with our money. Money is numbers, numbers don't operate on emotions and so we shouldn't. Numbers are not irrational, they always add up even when we're not.


The End

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Money tends to change peoples thoughts on matters quite significantly for reasons that seem beyond silly. It doesn't always make sense to others but it will for the individual making the transaction and that is what matters to them.

Your example with the ATM and the 45 cent charge is a good explanation of the subject. Thank you for sharing!

Too Real !

By thinking through how we perceive and treat money, we can make more rational financial decisions that align with our true values and goals.

At all cost individuals should strive to see the bigger picture and ensure all money regardless of its form is appreciated equally.