3 Money Beliefs That Impact Your Finances
“I just get so anxious. I don’t even want to look at my budget,” a friend once told me, relaying her difficulty with sticking to a spending plan.
She told me she worries about spending too much money, and as a result, will often avoid looking at her budget or avoid long-term planning. Additionally, she will avoid buying things she needs — such as a new pair of shorts — and then overspend on these items when she buys them at the last minute.
As we spoke, I realized that she was struggling with money avoidance. Money avoidance is one of three harmful money scripts identified by researcher Bradley Klontz. These scripts dictate the way we view and spend money. When driven by unhealthy scripts, a person may have destructive saving and spending habits.
As discussed above, those with money avoidant beliefs see money as a negative thing or do not believe they deserve money. These individuals may see virtue in living without money. As a result, they may give too much of their money away. Additionally, money can give them anxiety, so they may avoid budgeting or spend spontaneously. These individuals may also hold the conflicting belief that money will improve their lives. They may accordingly work long hours to earn more money.
The second script is money worship. Individuals driven by money worship see money as key to their happiness, while also believing that they will never have enough money to buy the things they want and need. As a result, these individuals may be chronic spenders, give money away when they cannot afford to, put work ahead of family, or be financially dependent on others.
Finally, those who hold the money status belief liken one’s wealth to one’s self-worth and success. As a result, these individuals may overspend in an attempt to appear wealthier. These individuals are also more likely to lie to their spouses about their spending and be compulsive gamblers.
Developing healthy financial beliefs is key to your success. If you find that you are driven by one or multiple of the scripts above, start to work to reframe your beliefs about money. Just like dieting, it will be difficult to form new habits and mindsets. However, if you work each day to examine your own responses to money, you can begin to contextualize your responses and reframe your beliefs. Slowly, you can start developing a healthier financial perspective as well as better spending and saving habits. It may be helpful to log your work and successes, so if you become frustrated, you can look back and remember all that you’ve accomplished.
