Your Relationship with Money

We each have our own individual relationship with money. We’re always doing our own little dance with it. We label it as good or bad, feel all sorts of things about how we spend or save. We’re also not shy about judging how other people handle their cash either!

But here’s the thing: our emotions around money go deeper than spending and saving. They affect our whole lives and how we feel overall.

Let’s explore 🔎 four common money mindsets (or money “scripts”) that can drive our financial lives. These four money scripts come from financial psychologist Brad Klontz:

1. Money Avoidance 🙅: Do you ever feel like money is bad and the cause of all problems? If so, you might be in the money avoidance club. This mindset links wealth to negative traits, leading you to feel guilty about having money. To break free, we need to address our worries about money and recognize the ways that financial success can align with good values.

2. Money Worship 💸: Raise your hand if you believe more money will solve all your problems! If that’s you, welcome to the money worship crew. This can make us spend too much and lead us to taking unnecessary money risks. It also goes hand in hand with a scarcity mentality, where “there’s never enough money.” Money certainly can make life more comfortable up to a point. But to overcome money worship, you must recognize that there is such a thing as enough money, and many other things are important to a good life.

3. Money Status 🛍️: Do you think your worth comes from how much money you have? Then you might be stuck in the money status mindset. This often stems from being competitive and wanting to keep up with Joneses. It also leads to overspending, unhappiness, and financial secrecy. Overcoming this script involves realizing that self-worth extends far beyond what you own and fostering financial habits that prioritize genuine happiness.

4. Money Vigilance 👀: Do you always worry about your money and try to be super careful with it? That’s the money vigilant mindset. It’s good to be responsible with money, but too much worrying can make us miss out on fun stuff. Finding balance is crucial, ensuring financial security without sacrificing the joy of living.

Recognizing these money mindsets is the first step to building a healthier relationship with money. So, take a moment to think about which mindset(s) you tend to lean towards. Hint: you can have more than one money mindset! Understanding where you are empowers you to build a healthier relationship with money. And if you feel better about money, you do better with money.