Lately the idea of money and how you think about money has become an interesting topic. As a financial planner I know the advantage of investing, diversifying and planning for major life events. When I sit down with a new client we do the usual gathering of information, flush out some goals and go to work figuring out what they need to do to achieve those goals.
The part that catches me off guard later in the relationship is the “money scripts” people have. These are defined in the book “The Financial Wisdom of Ebenezer Scrooge” by Ted Klontz, Rick Kahler and Bard Klontz. These are beliefs about money that you may or may not be aware of. What I found is that by asking someone what their first true memories about money are, it begins to unravel a thought process that could be a barrier to having a healthy relationship with money. We are caught up in beliefs that may or may not be true. By identifying these behaviors and thoughts you can begin to make some changes to your belief system. Money itself is not evil or bad. It is a means of exchange and the choices we make spending and saving often will determine our success.
Take some time and think about what your first memory of money is. How does it affect your decisions now? Are you afraid to spend money because of something that happened to you or your family in the past? Do you believe that investing is only for wealthy people? Do you not make good choices with your money? If you go back and identify what those money thoughts are you may discover a pattern.