I recently watched a video on Money Emotional Quotient by Ken Honda on the Mindvalley Platform and realized that there is a little more than just ‘accident’ when we talk about our relationship with money.
Most people will blame the circumstances, events and people responsible for their poor financial health but, our financial status is more than simply a set of circumstances; it has to do with the mindset behind those circumstances.
What is Money EQ and Money IQ?
When we speak about generating wealth in life, we usually depend upon the instincts of logic and material evidence to support our financial decisions.
Yet, sometimes, we are not able to justify why we ended up being emotional about spending money in a particular way.
The fact is, we make such decisions based on our past experiences circling around money. The ‘Money IQ’ may support your logical decisions in short term, but it does not define the long term emotional state of decision making related to money, until we address and resolve our issues relating to money relationships.
Money EQ on the other hand is the emotional connect between the situation and your inner self while making the financial decisions. Especially, when it is a major life decision, no amount of material logic will ever be able to support your decision, because, the fear / reservations about money keep you from taking the action.