Saving money can be bad for your health. Psychologists explain why

Should we put money aside, save money or spend more than planned? This is a choice we face every day – and everyone has to make a decision. Relationship with money is a complicated issue that significantly affects other spheres of life.

Ph.D. in Philosophy, Master of Neurolinguistic Programming, Gestalt therapist

With saving money everything is quite simple – you choose cheaper goods and services so that your income would be enough for these expenses. But if you want to spend more, you have to increase your income or look at alternative sources of income.

To get there, you need to reorganize your thinking and reconsider your attitude to spending.

In what cases saving money is pointless

Gezondheid

You don’t have to wait until it gets worse to buy expensive drugs. Often we try to save money and “get sick” at home, without going to the doctor. And when the situation worsens, it comes to the hospital, and we have to spend much more. Not to mention how neglected diseases affect health.

You should also choose quality food. Try to buy unrefined and unprocessed foods so that they retain their health benefits. Yes, such products, as a rule, cost more, but they will bring much more health benefits.

Appearance

Remember – you meet people by their clothes. And before the opponents consider your unique inner world, they will have time to assess how you present yourself through appearance. This is especially true when you’re applying for a job or getting to know a new company.

Identify the elements of your closet that should always be of high quality and expensive. For example, accessories, business attire or shoes.

Lodging

The place where you rest, sleep and stay for a significant part of your time should be comfortable and safe. You shouldn’t feel negative emotions when you walk into a dirty apartment with bare walls or wander down an unlit street.

Strive for comfort and enjoyment in your home or rented apartment. Cleanliness, and therefore timely cleaning, plays no small part in this. What happens if you neglect it for a long time, read in the material at the link.

Development

Invest in yourself. Choose programs and mentors who can impart unique knowledge, develop and scale your expertise. If you are truly motivated and serious about learning, the cost will definitely pay off.

Rest

Remember, the body and mind only rest when they are in a state of calm, peace and ease. Take this into account when choosing a type of rest. And do not forget to supplement it with bright emotions and impressions to reboot.

What a healthy relationship with money looks like

Associate Professor of the Department of Social Psychology at the Moscow Institute of Psychoanalysis

Many people are in the captivity of the so-called “dichotomous consciousness”, emphasizing only “black” and “white” sides of any phenomenon. In financial matters, this is often expressed in the idea that it is better to be a miser than a spender. Therefore, at an intuitive level, we teach children to save up money for desirable purchases, not to spend it on nonsense.

It is hard to argue with this, but financial literacy is a much more complex phenomenon than many people assume.

From a psychological point of view, money is a resource that we exchange to achieve goals. Therefore, developing financial literacy should start with understanding what we really want. In psychology, this is called meaningfulness.

Many people are hindered in achieving their goals by the most common things. More about this in the article at the link.

Not everyone can boast a meaningful approach to life. In this case, a professional psychologist will help to realize the goals and develop a feasible plan to achieve them. The next step is to prioritize and designate your own boundaries of permissible. Answer yourself a few questions. What are you willing to sacrifice for the sake of achieving the goal? What moral dilemmas will you face along the way? For example, are you willing to cheat people for a high salary?

When the priorities are set, it is worth thinking about financial behavior. Economic psychology distinguishes two main forms: saving and investing. The first is associated with savings, the ability to put aside part of the funds without making unnecessary purchases. The second is multiplication of capital, the ability to receive income from invested funds. A financially literate person usually combines these strategies.

The question of how to save and spend is very individual and depends on your personal goals. But it is possible to formulate a few universal tips for proper budget planning.

• Keep a spreadsheet of income and expenses.
• Divide expenses into four categories: a) urgent and necessary; b) non-urgent and necessary; c) urgent and unnecessary; d) non-urgent and unnecessary.
• Create “piggy banks” and transfer a portion of any income into them. “Money boxes” can be targeted (e.g., “for vacation”, “for repairs”) and stabilization (e.g., half of your salary for unexpected expenses or a “safety cushion” of 6-12 months of income in case of layoff).
• Use financial instruments properly: loans, stock market, etc. Remember that high profitability is directly related to the risk of losing money.