Let’s go to class.
There’s an important psychology that should be understood before you get into the actual way to make money. One that explains to great detail, why some people fall for the same get-rich schemes or the reasons behind some other people’s hesitations when it comes to spending their money.
It’s called Freud’s model of the mind. In his findings, you’ll come across the “Psychic Apparatus” where he saw the human personality as having three aspects. Each of these three aspects work together to produce all of our “complex” behaviours: the Id, the Ego and the Superego. All three components need to be in balance in order to have a good amount of psychological energy available and to have reasonable mental health.
The Id
The Id lives deep within our subconscious from birth. It’s the source of our sudden and most instinctive urges. When you find yourself doing what you know you shouldn’t do, blame your Id. It has only one rule → the pleasure principle – basically saying “I want it and I want it NOW, no matter what!”.
When Id is too strong = one is bound up in self-gratification and uncaring to others.
The Ego
The Ego is the driver making the decisions. It is the rational part of the mind that decides between the devil (the Id) and the angel (the Super-Ego), yes, just like in those Tom and Jerry cartoons with the devil and an angel on either shoulder. We have small voices in our head, and it’s up to the ego to decide which one to fulfil. Its goal is to find a compromise between satisfying both the Id and the Super-ego – basically saying- “I want it now but on second thought, I don’t need it now”.
When Ego is too strong = one is extremely rational and efficient, but cold, boring and distant.
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The Super-Ego
The super-ego is formed later in life to balance the Id. It forms and breaks off from the Id through our upbringing, parental guidance and our sense of community and beliefs. It continually strives for perfection based on set standards and consciousness. Its power to enforce rules comes from its ability to create anxiety and people who are typically careful with their money have their strong super-ego to thank.
When Super-ego is too strong = one feels guilty all the time, cares about what others think and may end up having an insufferably saintly personality.
Now what does all this have to do with you? Naturally, your Id wants you to fulfil those “I want money and I want it now!” desires. Because of this need for self-gratification, those get-rich quick schemes and weight-loss diets are naturally popular – though we are aware a good number of them are untrue or unproven. A dominant Id ensures you are always willing to try anything. If this describes you – a word of advice – Be wary of opportunities that seem too good to be true because they might actually just be too good to be true.
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With the Ego and Super-Ego however, you are willing to follow a steady path to achieve these same goals, this time through rational thinking, asking the important questions, getting help and doing your homework in general, before deciding how to make that money. A dominant superego or ego can also mean you are never willing to accept change, adapt quickly or leave your comfort zone unless you are armed to the teeth with facts. If this describes you – a word of advice – Take some calculated risks but don’t miss your opportunity to strike while the iron is hot.
If your goals for your finances include amassing wealth that outlives you, I encourage you to channel your Id to give you courage to take risks but channel your ego and superego to force you to calculate them first.
JR Kanu holds an MBA from Stanford University, a master’s in Journalism from NYU and a bachelor’s in Engineering from Calvin College. His career has included time at Konga, Amazon, The United Nations, Esquire, CNN, and Black Enterprise magazine. Armed with a strong conviction that you can live a great life no matter how much money you have, JR founded REACH Technologies, www.reach.africa. His company builds software to help young people and companies to manage and grow their money.
