How Money Beliefs Affect Your Spending
It’s common knowledge that one must control one’s thoughts because thoughts lead to actions. The same is true with money – how you think about money directly leads to how one spends money. So it goes that improving your relationship with money is an important first step to changing your spending habits.
Many people, particularly women, believe they are terrible with money and then act according to that belief. “I’m terrible with money,” one thinks, and thus that person doesn’t feel the impetus to learn how to be better with money. Or she tells herself she is terrible with money so it doesn’t hurt her psyche when she’s spending as she shouldn’t.
If you are terrible with money, then acting as if you’re terrible with money seems like a logical next step. But if you perceive yourself to be good with money, it’s harder to act against that identity. If you act against your belief in yourself, you have cognitive dissonance. So you then have to change your actions to match up with your identity or you rationalize your actions to yourself so you can retain your identity. Either way, it’s a bit more difficult than just thinking bad person=bad actions.