The Psychology Of Money

What is it about money that makes people want to horde more and more and more… but never enough? It is biological, or hardwired into our brains the moment we are born.

Have you ever seen ants carrying more than enough food into their hills? They are storing their food in case of future shortages. Humans like to do the same thing, except we have placed food with money (which in turn can be exchanged for foods, other goods, and services). It is hardwired into our brains that we need extra food slash money stored away, in case we run out of food slash money. Our brains does not set a limit to how much is too much, because in nature, it is unlikely that we will end up with too much due to continuous consumption. Even if we do, extra food will never harm us. So we end up endlessly piling money into our banks, even if we already have too much (for example, William Henry Gates the third with more than fifty six billion dollars).

Money also plays a role in our display of status. Animals show their status with roars, humans have out evolved that and have learned to show our status with money and the luxuries that can be brought with money.

In the animal kingdom, the lower ranked animals always want to become higher ranked. For example, it is not unusual when as soon as the current dominant male or female is unable defend his or her spot, another takes over. Humans are also doomed to this never-ending cycle of competition: we are always trying to be better then other people. We endlessly try to show that we are the dominant man on our street, in our town or even in the world by showing our “status” with money. But there will always be people who have nicer things, drive a better car, or simply have more money, and we are trapped in the endless cycle.

We hoard money endlessly because it is part of our natural instincts. Greed is a part of human nature.