Transforming Your Money Story: How to Rewrite Your Financial Narrative
What is a Money Story?
The way you perceive and handle money can have a significant impact on your financial situation and your progress towards achieving your financial goals. Money can evoke a wide range of emotions, including shame, pride, guilt, and stress, among others. These feelings about money are often rooted in childhood.
Even if money was not openly discussed by the adults in your life as you were growing up, you still absorbed and learned from how it was handled in your family, and the emotions surrounding it. Maybe there was a traumatic event, such as a job loss, death, or divorce that impacted your family finances. Or, it could have been things like extreme frugality or excessive spending, parents arguing about money, or a general feeling of tension surrounding bill payments.
All of these experiences form your money story (also called a “money script”), or your personal narrative and belief patterns about money. For example, you might think:
If I had more money, my life would be perfect.
I am bad with money.
I work hard and deserve to treat myself.
Rich people are greedy.
It’s not polite to talk about money.
When you better understanding your money story, you will have the insight you need to take steps to improve your financial future. Reflect on the past and present of your money story, asking yourself questions like:
What are my earliest memories of money?
What messages did I receive about money growing up?
What are my current attitudes and behaviors around money?
Where do and don’t you spend money?
How do I feel about money? How does money make me feel?
Then, look towards the future. Visualize what your desired financial future looks like. Imagine what your mindset would be. Think about what you need to do to get there.
How to Change Your Money Story
By taking control of your finances, you can change your own financial situation. This involves transforming your mindset, swapping out good habits for ones that disserve you, setting goals, and taking action on a plan to attain them. It seems so simple, but in reality it can be hard to follow through on your own.
Working with a financial coach can be immensely helpful in improving your finances and changing your money story. By providing personalized guidance, accountability, financial education, support, encouragement, and an objective perspective, a certified financial coach like an Accredited Financial Counselor® can work with you to ensure you achieve your goals efficiently and effectively. If you need extra support and guidance in improving your finances, contact us!
Here are steps to take control of your financial situation and change your money story.
Identify limiting beliefs. These might include beliefs like "money is hard to come by" or "I'll never be rich." Write these beliefs down and be honest with yourself about how they might be holding you back.
Rewrite your beliefs. Challenge your limiting beliefs by literally writing down new, empowering ones. For example, if your old belief was "money is hard to come by," your new belief could be "I am capable of earning and managing money effectively."
Identify disabling money habits. Take some time to reflect on your financial habits and identify areas and triggers where you tend to overspend or make poor decisions. Be mindful and inquisitive, but not judgmental.
Set new financial goals that align with your new beliefs. For example, if your new belief is "I am capable of earning and managing money effectively," you might set a goal to start saving a portion of your income each month.
Create a realistic plan. This is what you will do - your new, constructive habits - to reach your goals, and make it achievable. It might involve creating a budget, tracking your spending, identifying and cutting spending, staying away from Target, or seeking out a side hustle to earn more money.
Take action towards your new financial goals. Be patient with yourself and remember that changing your money story takes time and effort.
Celebrate your achievements! Finally, celebrate your successes along the way, no matter how small they may seem. This will help you stay motivated and continue to make progress towards your financial goals.
Remember, the key to a more prosperous financial future is you. By adopting a positive outlook and working towards your financial goals, you can overcome any roadblocks to rewrite your money story.
