WEALTH
What does money mean to you ?
By Johan Gouws , Head of PPS Wealth Advisory
Our money behaviours are shaped by the meaning we attach to money , which varies based on our early life experiences . Understanding what money means to you can help you become more aware of your financial behaviour . In his book You and Your Money , Alvin Hall explains that the meaning we assign to money can have both positive and negative aspects . Our personality , relationships and worldview influence these meanings and align with the famous American psychologist Abraham Maslow ’ s hierarchy of needs . Here are six common meanings people place on money , which significantly impact how they manage it .
SECURITY
Maslow ’ s hierarchy places the need for safety and security right after basic needs like food and water . When it comes to money , this need can either cause stress or offer peace of mind . Constant worry about money can drain your energy , cloud your judgement and lead to poor decisions . However , if you find comfort in having your needs met – even if not your wants – it can free up mental space , giving you clarity and energy to make better decisions for your financial future .
STATUS
As a meaning of money , status ranks higher up the value chain and is positioned just below the self-actualisation level of human needs . It speaks to our ego ’ s demands for recognition and acceptance by others . Suppose the meaning of money is dominated by the need to be perceived as highly successful from a materialistic and social standing perspective . In that case , we run the risk of spending money we do not have on things we do not need to impress people we do not even know .
As an alternative , you could see the responsible management of your financial affairs as an example to others that achieving your financial goals is within reach of anyone who truly puts their mind and heart into it .
ACCESS TO OPPORTUNITIES
Life is filled with many beautiful experiences that make our time on earth richer and more enjoyable , where being able to work and play helps us live a more integrated life . As with most things in life , it needs to be done in moderation . The experiences you seek should enrich your life and leave you feeling reinvigorated