Your income, debt, spending habits and net worth aren’t merely a function of your actions. They’re a reflection of your deep-seated inner psychology around money.
Dr. Brad Klontz, a clinical psychologist and financial planner, joins me on today’s show to discuss four “money scripts” that may be harming us. These scripts include:
Money avoidance — We believe money corrupts or that staying poor is noble, so we self-sabotage our success. Yet at the same time, we also desperately (at the conscious level) want more money in our lives, and feel trapped between these conflicting ideas.
Money worship — We believe money will solve our problems. And even though we know that the research says that, after a tipping point, it won’t, we don’t internalize that idea.
Money status — We believe our net worth is our self-worth, and we overly identify with our investment and bank balances. We may display conspicuous consumption or place a high priority on making the “right” friends.
Money vigilance — We watch our money carefully, but we may also feel anxious about running out. We may also downplay the amount of money that we have, if we’re outperforming our friends, because we feel guilt and imposter syndrome.
In addition to these four “money scripts,” we’re also subject to innate cognitive biases around how we manage money. We may grapple with loss aversion, overconfidence, or confirmation bias.
How can we develop a healthy relationship with money? Find out in today’s episode.
Resources Mentioned:
Books by Dr. Brad Klontz
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