Ego shows up in our personal finances in several ways. The most common example is overspending to impress others. Whether it’s buying a luxury car we can't afford or splurging on fancy clothes, these decisions are less about what we need and more about our image. This can quickly lead to debt and financial strain, all in the pursuit of approval from others.
Another way ego can derail our financial health is through risky investments. The appeal of making quick profits is strong and can be driven by fear or greed. If these investment opportunities don’t pan out, or turn out to be a scam, the financial losses can be significant, leaving us worse off than if we had made more informed, cautious choices.
Refusing to seek professional support is another trap. Many of us hesitate to consult with a coach because we’re embarrassed or believe we already know enough. This prevents us from gaining valuable insights and strategies that could enhance our financial wellbeing. Admitting that we don’t have all the answers and may have some blind spots when it comes to our money behaviours is a sign of strength.
So how do we keep our ego under control? It starts with self-awareness and reflection. Taking the time to assess our past financial decisions can reveal patterns of ego-driven behaviour. Acknowledging these tendencies is the first step towards making more mindful choices.
Setting realistic financial goals is also crucial. When our objectives are based on our true needs and values rather than external validation, we’re more likely to make decisions that benefit our financial future. These goals should be specific and aligned with our personal situation.
Building our financial education is another powerful tool. The more we learn, the more equipped we are to make informed decisions. This doesn’t just mean reading books or taking courses, but also being open to input from those with a range of knowledge and experience, such as financial coaches. They can provide a different perspective and help us navigate our money complexities.
Practicing humility significantly impacts our financial decisions. Recognising and learning from our mistakes makes us more cautious and thoughtful. Humility also frees us from seeking validation through material possessions, enabling us to focus on long-term financial wellbeing.
Ego will always play a role in our lives, but by staying mindful of its influence, we can make financial decisions that are wiser and more beneficial in the long run. Let’s build a financial future based on sound judgment and realistic goals, rather than the temporary satisfaction that arises from ego-driven choices.
