This chapter discusses the role and impact of human motivations and beliefs in relation to money. It helps the students to understand the importance of setting clear life goals and developing and maintaining a personal expenditure budget. The chapter also explains the main financial behavioural biases and how they can influence financial decisions. Life goals that will be common to everyone are maintaining financial independence and staying fit and well. This means being able to fund their desired lifestyle until they die, regardless of their desire or ability to work, and that their money lasts a lifetime, including a time when paid work is optional because they have enough financial resources available to fund their desired lifestyle. The foundation of standard or traditional finance is called classical economic theory, and it provides a framework for understanding human motivation. Behavioural finance is the study of human psychology as it relates to money.