Many of us are crazy about money. We spend too much of it and save too little. We hoard it and we sink into debt over it. We lavish it and are stingy with it. We lie about it and fight over it. We think about it all the time and we avoid thinking about it at all. What makes us act this way? We like to believe that our choices and actions are guided by rationality and common sense. But in fact, reason and common sense often have little to do with our money behavior. Even trained financial professionals can be crazy about money. Rather, our decisions are governed by our emotions and money beliefs. If these emotions and beliefs are balanced and clear, we will act wisely with our money. If they are confused, we will make poor decisions, creating financial havoc and deep unhappiness.
The video below is an introduction to Dr. Maggie Baker’s book, ‘Crazy About Money’ which helps to demystify some of the reasons why we have the psychological issues that we face when dealing with money and how to resolve them. Her blog posts also provide invaluable information on various difficult financial scenarios and how to recognize them as well as navigate them.