The Psychology of Money: How Mindset and Behavior Affect Business Decisions

When we talk about money in business, we often focus on numbers: revenue, expenses, investments, exits. But behind every financial decision is a mindset — a deeply ingrained pattern of thinking shaped by our experiences, upbringing, values, and sometimes, unconscious fears. This is the psychology of money.

At Washington Avenue Advisors (WAA), we’ve seen firsthand how the way you think about money influences how you use it, especially as a founder or business owner making high-stakes decisions. Your money mindset shapes your financial outcomes. This is why we stand by the idea that our work really isn’t just about knowing the numbers — it’s about understanding people. 

The Human Psychology of Financial Planning

One of our advisors, Amanda Beeler, has a unique perspective. After earning her psychology degree from Michigan State University in 2013, she transitioned into financial advising — a move that might seem unexpected at first.

But to Amanda, the link was clear:

“I always wanted to help people, and that’s why I went into psychology initially. I did not realize before how much psychology tied into financial planning, and how it would tie into being able to help other individuals, families, business owners, companies.”

Amanda Beeler, CFP, CEPA, Partner and Financial Planner at Washington Avenue Advisors. B.A. in Psychology, MSU.

In our discovery meetings with clients, we rarely start by talking about money. As WAA partner Reuben Levinsohn puts it:

“When we sit down with new clients in our discovery meeting, it’s all psychology — we’re asking nothing about their money. We’re asking what’s important to them, what motivates and what drives them.”

These conversations reveal the roots of a client’s financial behavior — and help us craft a plan that aligns with their values, not just their budgets.

Why Psychology Matters for Founders and Business Owners

As an entrepreneur, your business can only grow as strong as your personal financial foundation. And that foundation is deeply tied to the beliefs and behaviors you hold about money.

Maybe you grew up thinking money was scarce, or maybe you were taught to spend freely and trust it would always flow. These early beliefs affect the risks you’re willing to take, the investments you make, and how you lead your company.

“The way people think about money is the way they act with money. Some of that is how we grew up, what our parents taught us, some of it’s societal.” — Reuben Levinsohn

This is why financial planning for business owners must take both personal and business finances into account. You’re not just running a company — you’re building a life, a legacy. And how you think about money will either help or hinder that process.

The Role of the Advisor

Our team at Washington Avenue Advisors doesn’t believe in cookie-cutter financial plans. We take the time to understand what matters most to you — not just your goals, but your values – when we sit down to craft your personal financial roadmaps. Amanda puts it best:

“Getting people on track for financial independence is my unique skill. But what drives me is watching clients progress over the years. Together, we achieve financial goals and build confidence.”

We’re proud to have a team that values connection just as much as calculation — people like Amanda, who blend emotional and psychological insight with financial expertise.

Looking Ahead

In a future post, we’ll dive deeper into some of the most common psychological biases that can sabotage financial decisions — like loss aversion, confirmation bias, and overconfidence.

But for now, take a moment to reflect:

• What early money beliefs shaped how you think about spending, saving, or investing today?

• How do those beliefs show up in the way you lead your business?

If you’re ready to explore this further, our team is here for a one-on-one conversation.

Let’s connect life and wealth — together.

https://www.waadvisors.com/contact-3 

Changing your mindset around money can change the trajectory of your life.

The information presented does not involve the rendering of personalized consulting, investment, financial, legal, tax advice, or solicitation. Investment advisory services offered through Washington Avenue Advisors, LLC ("WAA"), an SEC Registered Investment Advisor.