Have Anxiety Around Money? Learn To Improve Your Money EQ

Ken Honda the bestseller of Happy Money interviewed a bunch of rich Japanese billionaires to understand how they perceived money. He coined the term “Money EQ” (Emotional Intelligence). According to Honda, Money EQ emphasizes the relationship and mindset one has towards money vs financial literacy (Money IQ).

In his research he became aware that money is energy, and the way we perceive money affects to way we deal with it.

There are three money types personalities.

Three Money Personality Types

1. Controlling — Uses money to control their emotions.
2. Indifferent — A person who can make decisions irrelevant of money.
3. Fear — Believes that money is bad / evil and therefore avoids money.

Control Money Type

Each money type has their own subtypes. Within the Control Money group there are:

• Saver — someone who uses money to reduce fear and increase sense of security
• Spender — someone who uses money to feel good
• Money Maker — someone who gets enjoyment out of making money

Fun fact: money savers and spenders is that they are often attracted to each other. The psychology around this is that savers want to be around spenders because they’re fun, exciting, and generous. They use money to have experiences and get joy out of life. Spenders like to be around savers because deep down they know they’re too careless with money, and want to be more grounded. In romantic relationships this often leads to arguments. Ken Honda, has said that the realization that a couple has different money types has helped them accept one another and reolve arguments.

Indifferent Money Type

People who are indifferent to money can choose a life path that isn’t influenced by money. Since they can focus on what gives them purpose they are generally happy. The only downside is that if they can’t do their purpose to earn money, they generally don’t know what to do.

Fear Money Type

Within the Fear Money group there are also three subtypes:

• Hippie — has resentment towards money and avoids capitalism
• The Gambler — will take big risks around money and uses it for thrill seeking
• The Spender-Splurger — will save money but then can’t hold onto it and will spend it all
• The Worrier — actions (over control) or paralysis (avoidance) are driven anxiety and concern with worry of not having enough or fear of loss

Fun fact: The Gambler may be a reaction to growing up in an overly stable household. The need for excitement leads to self sabbotage to create the ups and downs in life.

We may be on a spectrum of the different money types with a domination personality. Trying on a different personality is a great way to calibrate your relationship to money.

Money EQ

Key concepts around money EQ include:

Emotional Relationship:
Money EQ addresses one’s emotional connection to money, including attitudes, beliefs, and feelings that shape how they manage finances.

Healthy Mindset:
It stresses the importance of having a positive and healthy mindset towards money, moving away from negative emotions such as fear, guilt, or greed, which can hinder financial well-being.

Money and Happiness:
Honda’s teachings emphasize the connection between financial habits and overall happiness, advocating for a balanced and joyful relationship with money.

Spending with Joy:
He encourages spending and managing money in ways that bring joy, suggesting that emotional well-being and financial decisions are interconnected.

Practical Applications:
Money EQ involves integrating positive emotional responses with practical financial strategies, guiding decisions around earning, saving, and investing.

To read more about it buy the book or audible here

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