How to rewrite your money story

As a child, were you told that “money doesn’t grow on trees”? How about “money is the root of all evil”? Or maybe as a teenager you internalized the refrain “more money, more problems.” Seemingly innocuous phrases like these actually contribute to your current money story, and for many of us, that’s not a good thing.

All the information you receive from childhood to adulthood can serve to shape your mindset about money. Also known as your money story. Not everyone has a negative story, but many of us have internalized negative beliefs about money that, no matter how hard we work, save or invest, make our financial lives difficult.

That's why it's time to know yours, so you can change course and rewrite your financial future.

What does it mean to tell a money story?

Understanding your money story is essential to making informed financial decisions. Knowing your story will help you change the way you think about money. What is your money story? Your money story is your own belief and narrative about money.

Your money stories will be influenced by the influences of your childhood. You can tell your story by expressing your feelings, listening to what your parents say, observing the actions of others, and picking up on emotions (for example, a stressed household every payday).

No one chooses their money story: it starts in childhood. In fact, Children can understand basic money concepts from the age of three. While you can't choose the story of your money growing up, the good news is that you can. can It can be modified.

Why is it so important to know the story behind your money?

Everything you do is affected by your money story. Your money story is a major factor in your decisions about the size of the mortgage you take out, the clothes you buy, the job you choose, and every other choice you make. This means that your money story also plays a role in every decision you make.

You may have an example of a family where you had to live in poverty. This may lead you to save instead of spend, which may seem like a good thing, but that is not always the case.

Fear of spending money is one reason people avoid enjoying the many joys and benefits that money offers.

Understanding your money story will help you change your financial future. You can change your mindset about money when you recognize that you are living in a state of scarcity. Instead of worrying about whether there is enough, try to change your perspective and focus on abundance.

This new story about money – a story of abundance rather than lack – will open up new options for you. You will see that you can take control of your finances, that you have choices about how you can pay for what you want and how you can afford a home.

What do this means? You What is the history of money?

First you need to understand the money story you are living. Your story is the one you created in your childhood.

Write down your most important memories of money from your childhood. Do you remember your parents fighting over money? Was your father a spendthrift but he hid purchases from your mother? Your story will be influenced by all your memories about money.

Write down everything you think about money. Do you find yourself saying things like, “No one in my family is rich,” “I’m not good with money,” or “wanting money is selfish”? These are indicators of your money story.

Write down your answers to these questions. This will activate your own internal beliefs about money.

1. How did your parents teach you about money?
2. What is it? has not What did your family teach you about money and finances?
3. Have you had any arguments with your family about money?
4. Do you remember how your parents talked about money with each other?
5. How did you react to spending money when you were a child? How did your family spend money when you were a child?
6. What was your income?

Once you've compiled your list, you'll have a good idea of ​​what your money story is and can move on to rewriting that story.

There are tangible steps you can take to revise your money story.

Now that you know the story of your money and where it came from, it's time to rewrite it. Don't let words, actions and Your behavior will have an impact on your financial future. These steps will help you change the way you treat money and take control of your financial future.

1. Be kind to yourself and your past mistakes

Everyone makes mistakes. But some people are harder on themselves than others. Being able to forgive past financial mistakes, even if they continue to affect your future (like taking out too many student loans or running up credit card debt), is crucial if you want to improve your finances in the future.

It may be easier to let go of past financial mistakes once you know the basics of money matters and how you can control them.

Only when you have forgiven yourself can you let go of the past and open yourself to new ideas and a new future.

2. Reconsider your values

You will need to let go of the old money story and replace it with something new. Your personal core values ​​are a good place to start.

Your core values ​​guide you, whether they are conscious or unconscious. By becoming aware of your core values, you will be better able to determine what your true money story should be.

Let's say you have a value of security. Keep that in mind when you create your next story. You'll want your story to incorporate the high value you place on security. Your story might be about how you believe there is enough money available to support your family and help them thrive.

3. Learn to make money with confidence

You need to change your money story. You may think that to be successful you have to work hard. Of course, hard work has its advantages, but it is not the only way to become rich. Do you know about personal finance, investments and other financial topics?

Do it now! Take one of Clever Girl Finance’s free courses on investing or pick up a copy of Learn How Investing Works: Make Your Money Grow. After educating yourself and gaining confidence, you’ll be in a better position to rewrite your money story.

You'll go from believing you have to work yourself to death to get rich to realizing that money flows to you easily (as long as you understand the stock market!).

4. Be open to change

To rewrite your money story, you have to be willing to make changes Change your attitude and your actions You can let go of your beliefs and start from scratch. You can put your money story into practice by thinking about it every time you make a purchase or decision.

Do you see it from the old perspective (e.g., money should be spent) or from a new perspective? Do you see it from the old perspective (e.g., money can be spent but should also be saved) or from your new perspective (money can be used as needed and should be saved). Recite your declarations every morning.

You can write them on post-its and spread them around the house or car. It doesn't matter. There that takes you or what works best for you. But make sure you keep telling your money story often. Check out this list of the best books on money mindset.

Are you ready for a new money story?

One of the best changes you can make in your financial life is to identify and then change your money story. Once you uncover the most deeply held beliefs you have about money, you'll likely discover that there are many you don't want to hold on to.

Outside influences have shaped your story. But you can release those beliefs and discover a new money story—one that fits who you are today and where you want to go in the future.