People Who Save Too Much Money Are Emotionally Insecure

You don’t get rich with the money you make, you get rich with the money you don’t spend is the worst money phrase on the internet

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How do people react to a difficult living situation?

They hoard more money on the side. But that is not the only way to feel more secure.

People who are worried about their living conditions start saving because they anticipate a possible emergency and want to secure their future. This is the relationship between the willingness to spend money and a threat to positive self-perception.

This is how savers make decisions

However, it is not only perceived insecurity that influences saving behavior. The influence of social contacts is also a major influence.

People with more social contacts and greater satisfaction with their social life tend to save less money. Friends can replace money as a psychological resource and take away people’s anxiety about the future.

Perceived insecurity increases the willingness to save money. But it is also clear that when you are surrounded by people you know, you think less about your bank account balance.

Why do some people save their money and others waste it on non-fungible tokens (NFTs)?

Would you rather have five dollars now or ten dollars a month from now?

Both choices have pros and cons.