How Your Beliefs About Money Are Impacting Your Financial Wellbeing

How Your Beliefs About Money Are Impacting Your Financial Wellbeing

Have you ever thought about how your beliefs about money might be impacting your financial decisions?

 If not, it’s time to start paying attention. Research by Dr. Brad Klontz, a financial psychologist, says that we all have something called “money scripts,” which are unconscious beliefs and attitudes about money that often stem from childhood experiences and cultural influences – and they can even go back many generations.

The way we think about money is shaped by many factors, including our upbringing, education, and the media.

Some people may have grown up in a family where money was a taboo subject, or where there was never enough to get by, while others may have been taught that having a lot of money equates to success and happiness.

These experiences shape our money scripts, which in turn shape our financial behaviours.

According to Dr Klontz, there are four common types of money scripts:

Money Avoidance: People with this script have negative attitudes towards money and avoid dealing with financial matters altogether. They may feel that money is the root of all evil and that having too much of it is morally wrong.

Money Focus: People with this script believe that money is the key to happiness and success, and therefore overspend and accumulate debt. They may also believe that the more money they have, the more important they are.

Money Status: People with this script believe that their self-worth is determined by their financial success. They may feel that they need to accumulate wealth at all costs and may even sacrifice their personal relationships and well-being to achieve this.

Money Vigilance: People with this script believe that money is scarce and worry about financial stability. They may be reluctant to invest in opportunities and may be overly cautious with their money.

So, why do these money scripts matter?

• Understanding and addressing our money script is important to improve your financial well-being. By recognising your unconscious beliefs about money, you can identify any self-sabotaging behaviours or thought patterns that may be holding you back from achieving your financial goals in business and in life.
• By becoming aware of your money script and taking steps to change any negative beliefs, you can create a healthier relationship with money and improve your financial situation. For example, if you have a Money Focus script, you may need to work on developing more balanced spending habits and saving more for the future.
• Understanding your money scripts can also help you avoid financial pitfalls. For example, if you have a Money Status script, you may be more vulnerable to fraud or financial scams because you are willing to take risks to achieve financial success.

To uncover your own money script, you can take a free online test on the Klontz Money Script website. Taking the test can help you identify your unconscious beliefs about money and provide insights on how to improve your financial well-being.

Takeaway

Our money scripts shape our financial behaviours and attitudes towards money. By understanding and addressing our money scripts, we can improve our financial well-being and create a healthier relationship with money. So, take the time to reflect on your own money script and take action towards positive financial habits.