News

Financial awareness: the application of emotional intelligence in finance

"Lack of money is never a problem. Lack of money is simply a symptom of what is going on inside you".
T. Harv Eker

It is said that money does not buy happiness, but it does buy food, houses, transport, leisure and it is used to organise future projects. Therefore, earning or losing it can make a big difference in life and, consequently, in our happiness. Western society has programmed us to live "the dream" with all its elements and details but, at the same time, it has taught us not to talk about money. It is something that is not done: what we are supposed to do is simply to pursue more and more.

Today, many of our concerns are related to work and finance as capitalism has built our lives on a system where bartering hardly works anymore, where everything costs money, where without money we cannot afford to survive and where it seems that you are more the more you have.. The current trend of consumerism has its raison d'être in the possession and accumulation of things and does not only affect the most active consumers. We do not buy just out of necessity or survival: we are bombarded with advertisements and, thanks to the Internet, buying and consuming things is convenient, quick and easy and increasingly accessible.

However, what not all of us are aware of is that money has a much greater value than its monetary value: it is a reflection of emotions and, if there are economic problems, we can say that money is the effect and not the cause.. Problems on the outside come from problems on the inside. Relationships, food, health, sport, work, sex... are all aspects of life where problems give us information about our relationship with ourselves. There are really no problems, but there is something to solve, but we look at the problem and not the cause, so we don't give it a solution.

Only the desire to learn can lead to sustainable change over time. When we see clearly, we can decide. When we observe what happens, we can decide. Money says a lot about our relationship with ourselves, our desires, needs, fears and more. When we explore our relationship with money, we discover more about ourselves. When we analyse our relationship with money without judgement, we can gain important information about ourselves and how we live our lives..

The good news is that we can create a freer and healthier relationship with money.. Like everything else that prevents us from evolving, we need to explore, to know ourselves and to detect those situations or factors that can negatively affect the decision-making process related to money. This work can help us to better understand not only the financial situations we perpetuate, but ourselves. Understanding why we save most of what we earn and do not allow ourselves to enjoy money or life, or why we spend absurd amounts on things we do not need, can give us a lot of information about ourselves that can help us understand, accept and improve ourselves.

Until we are aware of what is wrong, we cannot change the current situation. Consciousness is the ability to recognise and perceive reality; it is what differentiates us from animals and machines. Being conscious is the path that opens the door to knowing who we are and from there to access true transformation. Only when we know how we are, what conditions us and what drives us, can we take actions that lead us to change what we are not comfortable with.. It is about recognising and perhaps not changing, but transforming.

A key element of emotional intelligence is to be constantly aware of our feelings and emotions in order to keep them under control and understand how they affect us on a daily basis. When we let an emotional reaction cloud the decision-making process, perception becomes distorted. As a result, we make mistakes we would not otherwise make.

It is not a question of knowing a lot about economics, being a mathematical genius or knowing all financial products in detail. If we want to fix our finances, let's start by looking at what's inside us. Let's start by understanding our brain preferences, temperament and competencies and then we can successfully manage our relationship with money.. Using scientific, psychological and medical studies we can look into our natural patterns and tendencies and take actions that will last over time and lead us to change what we are not comfortable with.

Next week: The different parts of the brain and their role in decision-making.

This text may be reproduced provided that PROA Comunicación is credited as the original source.


Rocío Ledesma del Fresno

Summa Cum Laude graduate in Business Administration and Management with a Minor in Economics from The American University of Paris, she has also completed a Master in Finance at Icade. She recently completed a Master in Emotional Intelligence at the Hune Institute.

For 25 years she was Director of the Innovation and Product Departments at Banif and Andbank. She is currently Manager at Dextra Corporate Advisorsindependent boutique of M&A and corporate, and director of Navis Capital Desarrollo, SGEIC, an alternative investment fund manager registered with the CNMV. She is also a member of the association WA4STEAMan international community of women business angels seeking to expand the female presence in STEAM fields by providing not only capital, but also by becoming a strategic partner for future leaders.

Technology, regulation and customer relations, the keys to the financial sector in 2020

In the aftermath of the 2008 financial crisis, which led, among other consequences, to increased regulatory intervention in the activities of banks, asset managers, intermediaries, investment services firms, insurers and other operators, the sector continues to undergo a profound transformation of its business models and its...

Ismael Nafría: "Paying for Information is Today an Inevitable Choice for the Survival of the Media".

Ismael Nafría, author of the book "The Reinvention of The New York Times", has been advising media outlets around the world for years. He knows well the journalistic business and understands the challenges that the media faces today in these moments of change and uncertainty. We review with him some...

Millennials and the Political Role of the EU

The European elections, the formation of Europe and how young people perceive and face these matters, is the main subject of a study endorsed by Vinces, an independent consultant specializing in Public Affairs, presented just a few days ago in Madrid. The preparation of the report "The European Elections from...

--Jorge Bustos: "Writing well is knowing how to choose verbs. The novice writer becomes obsessed with adjectives".

Jorge Bustos (Madrid, 1982) is the split between the journalist and the writer, the noise of the news and the silence demanded by the craft of writing. He defines himself as "a mixture of Cistercian monk and Wall Street wolf". At the same time as he disembowels the lie and the...

José Antonio R. Piedrabuena -- Stress during and after confinement

We are not in a position to deny that the confinement, the toxic environment of fragmentation created and maintained every day by some politicians, and their perverse trial balloons, has created stress, and continues to do so - adrenergic stress, because of the adrenalin. Adding this to the multiple insecurities of the citizen as a consequence of the...

The beginning of regulatory constraints in the internet sphere: Facebook's content advisory board

The continuous technological progress, together with the existence of an increasingly globalised and connected world, must be accompanied by a normative regulation that establishes the limits of what is permitted and what is an infringement of rights and freedoms, as well as of institutions or bodies that are not only allowed but also...

More conversations, more ideas, more PROA.
Follow us on our networks.

Receive ideas with criteria

Every week we share reflections, trends and the key aspects of about reputation, strategic communication, public affairs and innovation. Content designed for professionals who value information with diligence and perspective.