Financial Self-Determination: An Endogenous Factor in Individual Financial Health

Abstract

This article examines self-determination as a key endogenous factor in individual financial stability, highlighting its role in economic decision-making and the construction of financial freedom. Through a theoretical review, the foundations of self-determination are identified from a multidisciplinary perspective, integrating contributions from economics, psychology, and social sciences. The adopted methodology is based on the praxeological dimension of human action, complemented by an evolutionary approach inspired by the Evolutionary Theory of Economic Institutions. The findings suggest that self-determination directly influences time preference, savings, investment, and financial planning, establishing itself as an essential mechanism for autonomous wealth management. Additionally, structural barriers that limit its exercise are identified, such as institutional intervention and hegemonic ties that constrain an individual’s ability to make decisions aligned with their financial goals. Although the study is based on a theoretical framework, it acknowledges that the lack of direct empirical evidence limits the conclusive confirmation of the proposed hypotheses. However, it is argued that the article incorporates references to relevant empirical research in other fields, which indirectly reinforces the validity of the developed arguments. This approach opens the door to future empirical research that delves deeper into the relationship between financial self-determination and financial well-being.