
Why is personal finance dependent upon your behavior?
The Psychology of Money Understanding the Mindset Personal finance is dependent on behavior, primarily due to the psychology of money. Our thoughts and beliefs about money shape our financial decisions. For instance, having a scarcity mindset often leads to saving money and avoiding non-essential purchases. In contrast, an abundance mindset may encourage risk-taking and investing in high-return opportunities. By understanding and evaluating your money mindset, you can make better financial choices that align with your long-term goals....