Money Beliefs: What’s Driving Your Financial Health?
“Money makes the world go ‘round … The love of money is the root of all evil … More money will make things better … Work hard and the money will follow … Money doesn’t matter … Rich people are bad … Poor people are lazy … A penny saved is a penny earned …”
These are a few commonly held beliefs about money. You may recognize some of them as your own. You may identify others as you think about money and what it means to you. Either way, we all have beliefs about money that trigger strong feelings and emotions. It’s important that we learn to recognize our beliefs and begin to understand how they influence the way we live with and manage our money.
According to dictionary.com, money is “any circulating medium of exchange, including coins, paper money, and demand deposits.” It is not money itself, but ourexperience with money — how we manage money, how we observe others managing it, how we were raised with money, and what we’ve been told about money — that influences our money beliefs. These beliefs may or may not be serving us well.
Consider the following:
Georgina grew up in a family that struggled to make ends meet. She worked hard, graduated from college and now has a good-paying job. Yet because she grew up in an environment where money was a constant source of stress, Georgina feels that she should give away what she has to those struggling around her. So, she chooses to spend what she earns too generously on others. She is not able to save and builds up high levels of debt. Others grow increasingly dependent on her.
Imagine an alternative:
Georgina decides that financial security and independence are important to her. She also values helping family and loved ones. She budgets, invests monthly in her 401(k), builds an emergency fund, and reduces her student debt. At the same time, she teaches family members what she has learned about money management. She allocates a certain amount of her annual earnings to helping others, but makes sure clear boundaries are set and communicates openly with family about her ability to help. Georgina feels confident and secure. Others grow increasingly independent and resourceful. Georgina’s relationships with loved ones have never been stronger.
Like Georgina in the first example, you may have conflicted feelings about money, resulting in behaviors that don’t serve you well. And if you’ve read this far, you may be interested in exploring your own relationship with money – your money beliefs and how they influence your behavior. We strongly encourage you to do so! And we know that changing a lifetime’s worth of money emotions and habits can be incredibly hard work. We commend you for taking the first step and recommend a few helpful resources.
Check out your local library for one or more of the following books:
- Mind over Money: Overcoming the Money Disorders that Threaten our Financial Health by Brad Klontz and Ted Klontz
- It’s not about the Money by Brent Kessel
- Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin
Also, note that each of these authors has a Web site with FREE tools available … take a look:
And for those of you who are EARN Savers or Alumni, consider working with a Wealthcare Coach who can support you in this work. Contact coach@earn.org.
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“You can create a harmonious relationship with money.” – EARN’s Wealthcare Team
“There’s no money in poetry, but then, there’s no poetry in money, either.” – Robert Graves
