Challenging Money: Psychology Edition

I’m a huge fan of psychology, and particularly how our mind works and impacts the choices we make with our money. It’s a huge field that can only be dissected in bits and pieces as I’ve tried to do in the past, like when I looked at being in financial denial or dealing with financial extremes.

This week, three outstanding bloggers tackle financial psychology:

#1: The Simple Dollar: Instead of Thinking About What You Don’t Have, Think About What You Do Have. Trent does an interesting take on the financial hierarchy of needs—what happens when we fool ourselves into thinking we’re farther along than we actually are, and the damage that can cause.

“We’re often convinced, either by fooling ourselves or being fooled by others, that some things are more of a basic need than others or that some of our basic areas are well-covered.”

#2: Frugal Dad: The Dark Side of Gift Giving. (Guest post by CT). Most people think of gifts as something very positive to give and receive. It was refreshing to see someone cover the less exciting and often dangerous side of gifts.

“I believe it is Plato’s Republic that warns there are two major types of tyrants: those who exert power by force, and those who exert power through gift.”

#3: Christian Personal Finance: 21 Financial Questions to Improve Your Marriage. Playing 20 (or 21!) questions with the love of your live can be very insightful. Prompts like this ask questions you probably didn’t consider before, and help you analyze the results.

“Typically, these topics are issues because, until you were married, you never took the time to ask how they would respond to all these situations…I think talking about money can really help you open up a new door to financial intimacy.”

What’s your favorite financial post from the last few weeks?

P.S. The 304th Carnival of Personal Finance was hosted at MMI.

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