The Central Role of Money in Human Life

Money is a universal tool that shapes our interaction with the world. It serves as the foundation for meeting our basic needs, while also enabling self-expression, creativity, and growth. Far from being merely a transactional medium, money can act as a mirror, reflecting personal values, beliefs, and fears.

Yet, many struggle with their relationship to money. This struggle often stems from deep-seated emotional wounds or societal narratives that paint wealth as inherently negative. For others, the fear of realizing their full potential prevents them from embracing financial freedom. Misunderstanding money’s purpose can lead to unproductive behaviors: hoarding, overspending, or rejecting financial engagement altogether.

In reality, money is not an end in itself. It is a means to fulfill human needs—both basic and profound. It is through engaging with the cycle of experience, a model drawn from Gestalt theory, that we can better understand and resolve our relationship with money. This model reveals how unmet needs, emotional resistance, and behavioral patterns influence financial success.

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The Cycle of Experience and Financial Interaction

The cycle of experience is a natural process through which individuals identify, act on, and integrate their needs. This cycle consists of four distinct phases: pre-contact, contacting, final contact, and post-contact. Each phase reveals how individuals interact with their internal and external worlds, including their financial decisions.

Money serves as a powerful metaphor within this cycle. Much like the skin that delineates our physical boundaries, money represents a boundary between our internal desires and the external resources needed to meet them. As a means of connection and survival, it mediates how we interact with the world and fulfill our goals.

However, disruptions in the cycle of experience—caused by psychological mechanisms like introjection, projection, or retroflexion—can create obstacles to financial success. Let’s explore each phase of the cycle and its relevance to money.

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Phase 1: Pre-Contact – Recognizing Needs

The first phase of the cycle of experience begins with sensations, tension, or discomfort that signal the emergence of a need. This phase is governed by the “id” function, which processes raw sensory input and generates awareness of unmet needs. For example, a person who relies on public transportation might feel physically and emotionally drained, sparking a desire for a car to improve mobility and comfort.

Despite these signals, many struggle to progress beyond this phase due to confluence—a blending of personal desires with external influences. For instance:

• A person raised in a family with financial hardships might feel guilty for wanting more than their parents had.
• Socially inherited values, such as “money isn’t spiritual,” can blur the individual’s recognition of legitimate needs.

Confluence creates a false sense of alignment with others’ values, preventing individuals from acknowledging their own desires. To overcome this, one must differentiate personal needs from inherited beliefs and build healthy boundaries.

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Phase 2: Contacting – Exploring Possibilities

In the contacting phase, individuals actively explore how to meet their needs. This phase is driven by the “ego” function, which allows for deliberate decision-making and planning. For example, someone who recognizes the need for a car may start researching models, calculating costs, and exploring ways to increase income.

However, resistance mechanisms like introjection and projection frequently disrupt this phase:

• Introjection: Unquestioned beliefs such as “Money is evil” or “I’m not capable of earning more” can block action. These ideas, often internalized during childhood, create self-imposed limitations.
• Projection: Attributing personal fears or judgments to others hinders meaningful engagement. For instance, someone who believes “Wealthy people are greedy” may unconsciously avoid pursuing wealth to avoid associating themselves with greed.

Overcoming these barriers involves questioning deeply held assumptions, identifying their origins, and aligning actions with authentic goals.

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Phase 3: Final Contact – Taking Action

The final contact phase involves direct action to satisfy a need. Whether it’s earning, saving, or spending money, this is the stage where intention becomes reality. The “self” experiences fulfillment here, but common resistance mechanisms like retroflexion and deflection often interfere.

• Retroflexion: This occurs when individuals turn energy inward, preventing satisfaction. For example, someone who achieves financial success might hoard their earnings out of fear of losing it, depriving themselves of enjoyment.
• Deflection: Here, tension is redirected outward. This might manifest as impulsive spending or investing in unwise ventures to avoid confronting deeper fears.

Breaking these patterns requires self-awareness and deliberate effort. Recognizing and addressing fears of scarcity, guilt, or shame allows individuals to use money in ways that align with their values and aspirations.

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Phase 4: Post-Contact – Reflecting and Integrating

In the final phase of the cycle of experience, the individual reflects on their actions, assimilates the outcome, and integrates new knowledge into their self-concept. This phase is governed by the “personality” function, which shapes one’s sense of identity.

At this stage, resistance often appears as egotism—overanalyzing or devaluing achievements. For instance, a person might downplay their financial success by focusing on perceived shortcomings rather than celebrating progress. Such resistance limits personal growth and hinders the development of a healthy self-concept.

To complete this phase successfully, individuals must ask:

• “What does this financial achievement say about who I am?”
• “How does it reflect my values and goals?”

By answering these questions, they can integrate new experiences into their identity, fostering confidence and motivation.

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Mechanisms of Resistance: Barriers to Financial Growth

Interruptions in the cycle of experience often stem from societal influences, family dynamics, or past traumas. These interruptions manifest as psychological mechanisms that derail financial decisions:

• Confluence: Blurring personal boundaries with external values.
• Introjection: Absorbing unexamined beliefs that hinder financial actions.
• Projection: Externalizing internal fears onto others, preventing authentic engagement.
• Retroflexion and Deflection: Avoiding satisfaction through self-denial or impulsive actions.
• Egotism: Devaluing achievements and limiting growth.

Working through these mechanisms requires awareness, self-compassion, and a willingness to challenge deeply held assumptions.

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Money and Personal Growth: Aligning Resources with Purpose

Money is more than a means of exchange; it is a tool for self-expression, growth, and connection. A healthy relationship with money allows individuals to meet both practical and higher-order needs. Whether through investing in education, pursuing passions, or supporting others, financial freedom fosters personal and societal transformation.

By engaging fully with the cycle of experience, individuals can:

• Recognize genuine needs.
• Align actions with values.
• Reflect on their financial journey to build a meaningful self-concept.

Ultimately, money is not about what we have but about who we become. It empowers us to shape our reality, express our unique potential, and contribute to the world in ways that align with our highest aspirations.