So why do we sabotage ourselves when it comes to money?We know better but we can't do better.
Well it all comes down to our money scripts.
In this video we talk about what money scripts are, where they came from and how they can
keep us from reaching our goals.
Plus I'm going to give you 3 tips for discovering and rewriting your money scripts.
Coming up!
Hey I'm Dr. Brad Klontz on this channel we look at best strategies to help you transform
your relationship with money, master the psychology of wealth, and live a life of an abundance.
So check out the links and the resources in the show notes below and if you're new here
consider subscribing.
Now let's get started.
So what are money scripts?
Money scripts are those typically unconscious beliefs we have about money that we learn
in childhood.
They're passed down to us from our parents and grandparents and we learn them from people
we hang around and from our cultures.
We come by them honestly.
Think back to what your mother taught you about money.
What did your father teach you about money?
Did they teach you either directly or indirectly that there will never be enough money?
Or did you grow up believing there will always be enough money so you don't have to worry
about it?
What did they teach you about rich people?
What where their opinions about poor people?
Now chances are these lessons were grounded in some type of reality.
For example, the money script that there will never be enough money will very often come
from the experience of not having enough money no matter how hard you try.
Poverty for example, is often a very painful experience and can have an impact on your
relationship with money for the rest of your life.
The problem is that we take these beliefs for granted as adults and we rarely go back
and examine them.
Let alone decide to change them because we realize they aren't getting us where we want
to be.
Instead they are kind of like an actor's script in a movie we just continue to read the lines
in our heads or out loud to our family and friends and believe that they are true when
in fact they are often quite distorted and can limit our success or even hurt us.
For most of us our money scripts are unconscious but they drive all of our financial behaviors.
Now we have conducted many studies with thousands of people in recent years and have found that
money scripts are very strong predictors of your level of income, your net worth, your
financial behaviors, and even your credit card debt.
We've also found that wealthy people have very different money scripts than middle class
and poorer people.
You've heard about poor thinking, well our money script research has shown that this
is a very real thing and it will keep you poor.
Specifically we found 4 patterns of money scripts, three of which are bad for your financial
health.
The first is money avoidance this is the belief that rich people are greedy, money corrupts,
or there is even some kind of virtue in having less money.
It probably comes as no surprise that money avoidance scripts do not bode well for your
ability to accumulate wealth they are also associated with a whole host of financial
problems.
The second category is money worship.
This is the belief that the key to all your happiness is and the solution to all of your
problems is more money.
In fact money worship scripts tell you that you can never have enough money.
This money script is also associated with lower income, lower net worth, and self-destructive
financial behaviors.
The third category we have found is money status.
This is when we link our self-worth to our net worth.
The keeping up with the Jones' effect if you will.
With this script we won't buy something unless it is new and we might even tell people we
make more than we actually do.
Money status is also associated with poor financial outcomes and people from poorer
backgrounds are even more vulnerable to this script.
The fourth and final category we found is what we call money vigilance.
This is a belief that it is important to save for the future.
The money vigilant will often downplay how much money they have or make.
This combination of some anxiety about saving for the future and some secretiveness and
frugality is associated with having more wealth.
The good news is that by identifying your money scripts and where they came from you
can start to gain power over your relationship with money.
So here are three tips for discovering and re-writing your money scripts.
Tip number one take the Klontz Money Script Inventory this is the test we developed for
our research and which we have administered to thousands of people you can take it for
free at the link below and a report will automatically be emailed to you.
Tip number two reflect on what your parents taught you about money.
Journal about these, more specifically, what 3 things did your mother teach you about money?
What 3 things did your father teach you about money?
What was your earliest money memory?
Your most painful?
Your most joyful?
Lastly once you've identified some of these beliefs write down the most prominent ones
then ask yourself two simple questions: have they helped you or hurt you and how can you
change them to serve you better?
Question of the day: what are your money scripts and how have they helped you or hurt you?
Let me know in the comments section below.
If you like this video and you want to see more like it please subscribe and hey make sure to check
out the show notes and links below for resources.See you next time!
See you next time!