THREE WAYS PSYCHOLOGY SHAPES YOUR DECISIONS

Derek Hagen
Sep 25
3 min read

❝Every financial decision is also a psychological decision.❞ -Rick Kahler

MONEY IS MORE THAN MATH

Money decisions are never just about math. They’re about how our minds work, the stories we carry, and the life we’re aiming for.

If you're interested in values-based financial planning, here's how to work with a Money Quotient-trained financial life planner.

Here are three ways psychology influences your money choices, and how recognizing them can help you move forward with more confidence.

THE MIND'S SHORTCUTS

Our brains take mental shortcuts to make decisions quickly. These shortcuts are useful, but they also create blind spots.

You anchor on the first house price you see and compare everything else to it.
You fear losing $100 more than you enjoy finding $100.
You feel overconfident when picking a stock, convinced it will beat the market.

We all have these tendencies. The good news is that simply noticing them gives you more freedom to choose differently.

Money Scripts® are subconscious beliefs we have about money that we learn these we are growing up in our family systems. A Money Script can be anything, but they tend to fall into four categories. Learn what categories your Money Scripts fall into.

THE STORIES WE CARRY

Beyond shortcuts, we each carry money stories that shape how we feel and act.

“Debt is always bad.”
“Money equals success.”
“I’m just not good with money.”

These stories often come from family, culture, or past experiences. They explain why two people can react so differently to the same situation.

The important part: these stories don’t have to define your future. When you pause to notice them, you get to decide whether they still serve you or whether it’s time to write a new story.

THE LIFE YOU WANT

The final layer of psychology is about meaning and motivation. It’s where money connects to purpose.

Helping kids through college
Giving back to causes you care about
Retiring with freedom and flexibility

When you’re clear on what matters most, money decisions feel less overwhelming. They stop being about numbers alone and start being about what those numbers can do for your life.

MAKING FINANCIAL DECISIONS WITH CONFIDENCE

Your money choices aren’t just about math. They’re shaped by:

The blind spots of your mind’s shortcuts
The stories you carry from the past
The meaning that drives your future

When you see all three, you can make money decisions that fit not just your finances but your life.

You get one life; live intentionally.

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