Pointing out that people often act with psychological tendencies such as the desire for instant gratification, risk perception, and fear of loss, Özlem Denizmen said, “For a healthy money-psychology relationship, it is important to be aware of these emotional tendencies and to make conscious, planned financial decisions. Those who can control their emotions can also control their money.”
Emphasizing that creating social networks that can provide support during difficult times and applying stress management techniques ensure resilience against economic fluctuations, Denizmen stated, “If your emotions are not crushed, your financial freedom will also not be crushed. Financial resilience is more important than being rich.”
Özlem Denizmen, a businesswoman and Financial Literacy Instructor, who received one of this year's Üsküdar Üniversitesi 9th High Human Values Awards, discussed the relationship between money and psychology in a special interview with Üsküdar Haber Ajansı.
What do you think the relationship between money and psychology should be like?
Those who can control their emotions can also control their money…
The relationship between money and psychology is deeply connected to the fundamental emotional and cognitive factors that shape an individual's financial decisions. Behavioral finance emphasizes that individuals' decisions regarding money are often guided by psychological factors rather than being purely rational. People generally act with psychological tendencies such as the desire for instant gratification, risk perception, and fear of loss. For a healthy money-psychology relationship, it is important to be aware of these emotional tendencies and to make conscious, planned financial decisions. This level of awareness plays a critical role in achieving financial goals and reducing economic stress.
Having entered my 15th year this year, I can comfortably say that those who can control their emotions can also control their money. Therefore, psychology forms the basis for all decisions made in spending money, earning, and investing.
Daniel Kahneman, who recently passed away, also illuminated our path by allowing us to learn a great deal in this school of thought.
Considering that emotional capital should be managed like resource management, can we say there is a similarity in the context of money management?
Conscious emotional capital management improves decision-making processes…
Yes. Emotional capital is a resource that affects individuals' and organizations' relationships, motivations, and teamwork. As with money management, effectively managing emotional capital is important for sustainability and long-term success. Consciously utilizing emotional capital can improve decision-making processes and positively impact personal or corporate financial outcomes. Strategic planning, efficient use of resources, and investing for the future are important in both areas.
Life is the most valuable gift bestowed upon us; to manage it properly, being aware of our emotions and striving to manage them will greatly affect our financial world as well.
Do you think trust is important?
Davos's agenda: 'Rebuilding Trust'
I was in Davos last week because I was selected as a visual leader. The main topic there was rebuilding trust, building Davos... This was one of the most important issues, and meetings were constantly held about it. Resilience has become so important that resilience in humans being human, in cities remaining cities (related to climate), and in nations remaining nations, trust is highly valued.”
Is saying 'I have money' and 'I am happy' a correct approach?
The rich don't laugh more…
Wealth is wanting and needing the least amount of things. A person is not happy just because they have money. They might be unhappy when they don't have money, especially if livelihood is concerned. However, we can say that they feel good not because they are happy due to having money, but because their anxieties are reduced, and they feel secure.
The rich don't laugh more. As long as we see money not as an end, but as a means, it runs, and we chase it. Therefore, it is very important, especially for our youth, to set a goal for themselves and to realize that money is a tool that leads to that goal in the light of their own values.
What are your recommendations for psychological resilience in the context of economics? How do economic uncertainties affect individuals' psychology and their actions in life?
To develop psychological resilience, it is important to engage in realistic financial planning, create emergency funds, adopt a conscious approach to economic news, and strive to be financially literate. Additionally, creating social networks that can provide support during difficult times and applying stress management techniques ensure resilience against economic fluctuations.
Financial resilience is more important than being rich…
If your emotions are not crushed, your financial freedom will also not be crushed. Financial resilience is more important than being rich.
Among the most discussed words recently are “Trust” and “Psychological Resilience - Positive Psychology”. So much so that these words were also on the agenda in Davos. As someone who followed this topic on site, could you provide information on which aspects of this issue were addressed?
Certainly. I participated in January 2024 as someone selected as a Young Global Leader from Turkey. The topic of resilience was one of the most fundamental issues for countries, companies, and individuals alike. Climate change and the simultaneous occurrence of many crises, termed 'polycrisis,' affect and shake the resilience of both individuals and institutions.
However, we are going through times where all of us need to increase our flexibility, and instead of complaining about what's happening or being in a victim mentality, we need to take emotional, behavioral, and financial measures that will increase our resilience.
Financial resilience includes both emotions and the bank account.
What would be your recommendations regarding family budget and personal budget management in Turkey's inflationary and uncertain environment?
One should switch to 'Cactus Mode'…
The only thing we can control is our own behavior; therefore, I advise all of us to review our living standards and switch to “Cactus Mode” for a while, meaning to shape our lives by purchasing only what we need as much as possible for a certain period.
I invite everyone to Monay, our financial behavior application developed from 15 years of experience. By becoming part of a 150,000-strong family, you can start managing both your emotions and your money, and make a difference in managing your life better.