How Overly Open Information About Money Can Backfire
When something is considered taboo, it is difficult to know much about it. Money is a good example of this, and discussing it more openly is good. But like most good things, too much of it can backfire. LearnVest explains how being too frank about money can be problematic.
The trend in financial transparency is hard to miss. On sites like Glassdoor, you can share how much you earn with specific companies. Personal finance bloggers share their own capital and specific goals for debt. Usually this kind of transparency is meant to achieve something useful. You see how much you can expect to earn. You are inspired by other people’s achievements. You teach.
But Maggie Baker, author of ” Crazy about money: how emotions interfere with our selection of money” and what to do , says LearnVest, that this openness can also backfire.
“People tend to make social comparisons with others and ask themselves, ‘Do they have more than we do? Who is better? “” Says Baker. “But this line of conversation is not very productive.”
There is a fine line between wanting to know someone else’s details in order to improve your situation, and simply wanting to make social comparisons. Of course, this does not mean that we should keep money taboo. But there is a productive balance between too much information and censorship. Before talking frankly about money, Baker suggests asking what your motivation is:
“Ask yourself: is your purpose self-serving? Are you unsure of your finances and want to gossip about someone worse off to feel better? ” says Baker. “Or is it your goal to gain useful knowledge and feedback?” Clearly, if the former, then you should button your lips. But if your intentions are the same, then move on to the second step and follow a few basic rules to figure out who might be in the game to talk.
To learn about these ground rules, go to the full post.
TMMI! Isn’t a new culture invading your life with too much information about money? | LearnVest