'Money' is a universal medium of exchange, regardless of its denomination. Everyone has daily expenses, but the money in our wallets often has a source and frequently seems to vanish, leaving us struggling to make ends meet.

           
The simple yet challenging solution is to manage money in a balanced way.
 

The root of all problems begins when the money in our wallets does not align with our financial behaviors. The result is stress. Dr. Rapeepong Yangwarasawat, a financial counseling psychologist at Chulalongkorn Hospital, offers various insights for alleviating stress stemming from the complex issue of money.

Dr. Rapeepong Yangwarasawat
Financial Counseling Psychologist, Investment Psychology Department, Chulalongkorn Hospital

 

Why is money such a complex problem that requires therapy? What are the underlying causes of debt and poor financial management?


I view finance as consisting of earning money, saving money, and spending money. I prioritize these three aspects as they are interdependent. This is what we call 'financial balance'.
 

The issue arises when financial balance is disrupted. For instance, some people earn a lot but have no time to spend it, leading to certain stress. Thoughts have energy and must be expressed in some way if financial stress is not addressed.
 

Alternatively, some individuals spend more than they earn or save, creating an imbalance. When spending exceeds income, debt accumulates, burdening others—be it banks, friends, family, or relatives. Thus, the root of our problems lies in this financial imbalance.



Excessive spending, such as being a shopaholic, indicates an addiction. How do we develop a shopping addiction?

Spending addiction is a repetitive behavior, similar to drinking coffee. Once accustomed, especially to something we enjoy, we remember it. Therefore, when people earn money and spend it, it brings happiness—not that it's wrong, as long as it's within limits.


Shopping addiction often leads to preoccupation with spending. For example, if someone loves traveling, they might spend hours browsing hotel and travel websites, disrupting their financial balance. Work performance may decline as they become absorbed in this activity. I believe the definition of obsession is not fixed, but if you spend at least two hours a day on it, I consider it an obsession.


Moreover, shopping can lead to conflicts within families. People may hide their purchases, claiming they were inexpensive, leading to dishonesty and a lack of self-control.

From a scientific perspective, is there a correlation between excessive spending behavior and chemical imbalances in the brain?


To some extent, yes. Some individuals desire wealth, and their brains become accustomed to it. For instance, if we are addicted to coffee, we feel bored on days we don't have it. This affects our thoughts, emotions, and behaviors.


The brain can be addicted too, reflecting behaviors and emotions. When such thoughts arise, emotions follow, leading to impulsive spending.


When debts become unmanageable, credit cards multiply—one card covers another, and when the bubble bursts, stress ensues. Debt collectors come knocking, and financial problems often lead to work or family issues, resulting in depression. Ultimately, the problem traces back to finances.

For salaried individuals who feel financially secure for only two weeks each month, what advice do you have?


First, I recommend keeping a record. Second, track income and expenses to identify where money leaks. By understanding monthly earnings and spending, one can plan finances better.


Thus, salary issues stem from poor financial planning. If planned well, one can estimate annual expenses. For salaried employees, income is stable, while freelancers can average their earnings over several months to get a clearer picture.

If debts are overwhelming, disrupting life balance and financial balance, what should one do?


Identify the root cause of the problem and adjust behaviors. Sometimes, the root cause may be something simple. In today's materialistic society, the desire for material possessions can lead to overspending.


Reflecting on this, some may find their root cause is social pressure—wanting to impress friends or fulfill family desires, even at the expense of their own financial stability. It's essential to track where money is going and return to basics by documenting income and expenses.

When financial stress becomes overwhelming, regardless of wealth, what strategies can help alleviate financial stress?


This requires managing stress. Engaging in therapeutic activities that one enjoys is crucial. For those addicted to shopping, it’s important to avoid triggers. Initially, quitting may be difficult, but gradually, one can replace shopping with activities like exercising together, even if it means going to a public park instead of an expensive gym.


As a psychologist, I serve as a reflective mirror; the individual is ultimately their best healer. I merely reflect whether certain activities are beneficial and encourage them to experiment with what improves their life.

If spending brings temporary happiness, even for unnecessary items, and leads to guilt afterward, what should one do?


If a mistake has been made, I suggest keeping a record of it, noting it as the first instance. People in this group often forget; if they remember, they will be more mindful. A second instance may be considered a mistake, but a third indicates a pattern, leading to discomfort and guilt, similar to gambling addiction.


During counseling, we document past issues, discussing why a second purchase was justified when it resembles the first. This awareness helps them recognize patterns. Sometimes, we allow flexibility, as resolving issues and building mental resilience is not easy; it requires gradual effort.

If one is not the debtor but a family member is, such as a father in debt, how should the family cope with the stress?


If possible, I recommend discussing it as a family, as each member may have different concerns. It's essential to identify who holds influence and who the key decision-maker is.


Families are interconnected; for instance, a sibling may be close to the father while another is close to the mother. If the father faces financial difficulties, it's crucial to determine which issues to address first.


If the situation escalates to violence, it's important to identify who is violent towards whom, who can control the situation, and who has the power to negotiate. Understanding how to manage this violence is key.


Financial problems often stem from poor communication and blame-shifting. During conflicts, family members may stop using respectful language, leading to accusations and financial abuse, where one party may exert control over the other due to financial power.


Adjustment is necessary. If one partner incurs debt, the other must first adjust their mindset, then modify behaviors. Seeking a psychologist's help can be beneficial, and family members should provide support.

SOURCE: www.scb.co.th