Psychological analysis of human interaction with money has been ignored up until now. As a society we are just starting to analyze this relationship and there are new concepts being defined. These concepts are Financial Literacy , Financial Psychology , Financial Coaching and Financial Therapy .
Human behavior is highly irrational with most things but especially with money. Even successful people are highly irrational. Money operates very logically. The connection between successful financial management and the common man is centered on the ability to get in touch with the rational machinations of money. As you can see in the illustration below there is a lot going on inside of the financial brain of the average person.
Rational management of money can be accomplished with three personal finance thinking tools that can be operated by anyone…the personal budget, the personal net worth balance sheet and a personal life plan. Trying to get your brain to use these is a huge challenge. Man is hard wired and has survived by relying on instincts built into his psychological makeup. They are not rational. The goal of this website and our programs is to help the average person understand their psychological makeup and learn how to manage it. Knowledge is power and you will have the power to understand the psychological barriers keeping you from managing your money rationally. With that knowledge you can empower yourself to focus on the rational connection of money and your behavior. This will free you to manage your money to bring you what you really want in life.
To modify your financial behavior, you will have to invest some time and effort into understanding and managing your financial behavior. We will give you lots of material to read and some forms to fill out. We will coach you with text, keep you interested with our cartoon and money pictures and videos as our site evolves. Sign up for our “One Time Money Saving Report” and we will pay you forward so that you have the money to invest in improving your financial literacy.
