Here’s something to chew on.  Successfully managing your personal finances is that complicated.  You’re smart enough to do it.  Virtually everybody is capable of doing it.  Seriously.

Make money.  Spend less money than you make.  Save and invest the excess.

Lather.  Rinse.  Repeat.

Sure, there are a million and one variations on every element of that simple formula, but the basics are easy to grasp.  And if you played it rock simple without any advanced understanding, you’d be unlikely to starve in your old age.  You wouldn’t carry debt.  You’d have money socked aside.

This is how some of those people who don’t seem particularly bright end up making it through a life of unremarkable earnings in good shape.  They made some money but they didn’t spend it all.

So, if it’s so simple why are we here talking about it?  Why is Dave Ramsey packing stadiums?  Why do we know who Jim Cramer is?  Why do payday loan joints pop up like mushrooms in lousy 70s vintage strip malls?  After all, it’s not complicated.

Let’s just say you can’t confuse complication with ease.  The principles might be simple, but putting them into place can be a massive struggle.  And I’m beginning to believe that struggle is more about personal psychology than good money management skills.

I’m not a licensed mental heath professional.  I’m not even an unlicensed provider of unrequested mental health advice, generally speaking.  I am plugged into this wacky world of personal finance, though, and I’ve learned a few very interesting things.

Did you know that the same part of the brain that lights up like a Christmas tree when a guy sees a snapshot of Angelina Jolie wearing lingerie has a very similar reaction when he thinks about big, and potentially stupid, financial risks?

Or, did you hear about the studies that found that people who were exposed to particularly sad stories and ideas were willing to spend four times as much for something as those who were exposed to a neutral message?  The research discovered that those who are feeling bad about their lives or sorry for themselves were more apt to overspend.

Many people draw a parallel between eating disorders and overspending.  They note similar psychological underpinnings.  For instance:

The pattern of overspending is similar to binge eating. There is a trigger; often a negative emotion such as loneliness, depression or boredom. There is a decision point; you give yourself consent to spend. You take action by making the purchase, then once the high has passed, you are overcome with feelings of guilt, shame and self-hate.You are right back where you started, in a negative emotional state.

Are you seeing a theme developing?  Maybe the reason we aren’t all attacking our bad habits with Dave Ramsey’s “gazelle-like intensity” is because it isn’t as simple as knowing what to do.  Maybe it’s because we need to come to terms with the underlying causes of our tendencies.

Those who see bad money management and overspending as an addiction make a compelling argument.  However, as others have observed, the traditional method of dealing with addiction isn’t very helpful.  An alcholic may be able to find a way to never drink again, but a walking money disaster can’t suddenly decide that he or she will never spend again.  Money makes the world go ’round, right?

So, what’s the trick?  You probably don’t need to give up on the solid nuts and bolts advice, but you do need to realize that it might not help you to solve your personal finance problems.

I’m beginning to really believe that those who advocate some introspection and resolving some underlying personal issues in order to get your financial situation under control are on the right track.  If good advice on how to budget, spend, earn and invest could make everyone financially secure, we wouldn’t see so many people struggling with money problems.

Handling money isn’t complicated.  The human mind, on the other hand…