It is amazing what happens when we believe. Sometimes, we don’t have the belief in ourselves. Like right now, you may not have the belief in yourself that you can do this. Or you may not believe that you can ever handle money or that you are good with numbers.
Well, I believe in you and that you can do it. Often, that is enough to carry you to the point of believing that maybe you can. And then we can get to where we can do it.
Transcript: Money Beliefs That Determine Your Future
Hi, my name is Annette Bau (bah oo). I’m a Certified Financial Planner™ and founder of The Millionaire Insider®.
This is the Wealth Inside and Out® Podcast.
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Let’s dive into
Money Beliefs That Determine Your Future
Today, you will learn:
- Understanding your beliefs
- Common beliefs
- How beliefs impact “financial success”
- The power of talking about money and money scripts
- 7 Steps To Create a Healthier Money Mindset
The Power of Beliefs
A belief is a conviction that something is true, even without proof or evidence.
Beliefs can be formed through experiences, influences, upbringing, education, and other routes.
They shape our attitudes and behaviors, influencing how we interpret the world and make decisions.
That is why healthy money beliefs are so critical to securing retirement and a financially free future.
The Impact of Beliefs
My son was ten years old and a wide receiver on a flag football team.
We were losing more than winning.
He told me, “The problem is I need gloves.” So, my husband and son went to get gloves. They returned with bright red gloves.
I thought they would get black or grey. I remember thinking that he was going to get teased.
But my son was so excited about them. He believed in himself with these gloves.
As I sat down, the dad sitting next to me started laughing, and he said, “It looks like we got some new gloves; I am sure that will make a big difference.”
To add misery to the event, we were playing the best team in the league with two brothers who were lightning-fast. Their family had played professional sports, and we were unlikely to win.
We started playing, and my son was playing well, but we were behind the entire game. The score was 12 to 18 with two minutes left. I kid you not; they threw a pass, and my son intercepted it. He ran the entire field to score.
We made the final point and won 19 to 18. It was funny because the smart aleck beside me was no longer laughing.
He asked me where I got the gloves. This time, I was laughing.
It’s amazing what happens when we believe.
Sometimes, we don’t have belief in ourselves. Like right now, you may believe in yourself that you can do this, that you can ever handle money, or that you’ll ever be good with financial numbers.
Well, my belief that you can do it often is enough to carry you to the point where we’re like, well, maybe, and then we can get to where we are.
So I hope that helps you, and I hope you enjoy this. I also hope you find some red gloves here and a belief that you can do it.
So, let’s dive in.
Introduction Money Beliefs
So, let’s look at some money beliefs. Now, the importance of money is huge, and many people don’t understand that. But if you think about it, it’s the medium of exchange we use to purchase things, shelter, food, and utilities. So it’s essential.
It’s also required on your wealth creation journey. Meaning that if you don’t have enough money, you won’t ever become financially free.
So, money is critical unless you live in a third-world country, enjoy struggling, or want to live broke in retirement.
Whether or not you have a lot of money, your relationship with money will dictate much about your life. So, we need to make positive money beliefs a priority.
Common Beliefs Surrounding Money
Now, let’s look at some common beliefs surrounding money. Sometimes they help us, sometimes they don’t.
As we go through this, I want you to identify some of your beliefs about money.
Take a minute and identify beliefs you have about money.
It’s so interesting when people say that.
How do you pay your bills when your bank accounts don’t have enough money?
It’s a problem, right?
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It doesn’t mean you have to have your entire focus on money. But you have to understand that it does matter. And if you don’t believe me, try living without it for a while.
People say, well, it won’t bring me happiness. Clearly, having lots of money won’t bring you happiness, but neither will poverty.
Money is a Means to an End
Wealth is a by-product. It allows you to live the life you want to live. Money, or the lack thereof, will not bring you happiness. And so you just got to be aware of that.
Money is the Root of all Evil
Or people say, well, money is the root of all evil. It’s actually the love of money.
And it’s when you’re just putting money ahead of everything else, like how you treat people, what you do, don’t do.
How Money Impacts Financial Success and Results
If people don’t have enough money or believe that money isn’t okay, they often sabotage their success.
The result is having an unfortunate retirement. And it is never ideal.
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Talking about money and Money Talk Therapy
I grew up, like many of you, believing that talking about money was voo doo and was not appropriate; don’t talk about money, sex, politics, or religion.
One popular podcaster who loves to talk about money shared that she often gets emails telling her she shouldn’t talk about money.
When I recorded Episode 5: How I Became a Millionaire and said I am wealthy, I re-recorded it five times and actually woke up in the middle of the night thinking I can’t say I am wealthy. That is bragging, and then when I recorded the final version, I explained how I was wealthy from a statistic equation, i.e., being in the top 1% of net worths.
Learning How to Talk About Money
Encourage open conversations about money within families, communities, and workplaces. Create friendships or peer alliances where you can openly discuss financial matters.
So, let’s talk for one minute about the power of talking about money and money talk therapy.
Now, when I decided to do this episode, it was because I was listening to a podcast with a very popular podcaster. She said that she gets scathing emails telling her not to talk about money whenever she talks about it. It’s inappropriate. And this woman makes a lot of money.
I thought that was so interesting. It’s fascinating how so many people have this whole belief about money. And I want you to think about this for one minute.
Wealthy vs. Rich
Why is it okay that a person can have no money, meaning wealth, but they own a big house and a big car, and they’re rewarded by society? Meaning people say, oh, they’re wealthy, or, oh, they’re rich.
Now, most people have no idea the difference. I’ll link to rich versus wealthy in the show notes.
What’s funny is that you get rewarded because you appear to have money.
But if, let’s say, for instance, you’re a multimillionaire, meaning you have multiple millions in the bank. You may not look wealthy, and you may not have the biggest house or the nicest car, but if you say, I am wealthy, it’s considered bragging, and our society frowns upon it.
So it’s okay if you show up and look like you have money, but you don’t. But if you come and say, I am wealthy, it’s a problem. I just want you to think about that now.
It’s not like you’ll say, “I’m wealthy, I’m wealthy.”
I just want you to be aware of it.
The goal is that you have money, not that you look like you have money unless you have this desire not to have any money in retirement, because that’s really the formula to being financially free and living a fulfilled life.
Talking About Money
So the other thing you want to do is learn how to talk about money. And that is such a critical step.
When you have open conversations about money with supportive family members, communities, or even certain people you might work with, and you can discuss it without feeling like a braggart, that’s so important.
I also encourage you to create friendships and even peer alliances where you can discuss financial matters. And again, I know it’s not the norm, but it is so important, and it’s so powerful.
Money Scripts and Your Subconscious Mind
They’re often formed early in life and can be influenced by many things: education, peers, parents, and teachers.
And they impact your decisions, meaning your financial behaviors and good or bad money decisions.
Examples of money scripts
Ted Klontz, a financial psychologist, conducted a study on beliefs about money. He discovered four scripts in the study, which we will review.
People who follow this money script believe that money is bad and that they don’t deserve to have it. So they have a big problem if anyone brings up money, right? Because they feel guilty if they have money.
They don’t want to deal with any money issues. They avoid dealing with financial matters often in their life. And they have a tough time making financial decisions. They do what they can to avoid it, ignore it.
Then we’ve got money worshippers on the other end of the spectrum. They believe that money will solve all problems.
Now, I will say this much: money will solve many problems. That said, they also believe that money will bring them happiness. And as I shared, money will not bring you happiness, nor will poverty. Money is not meant to determine our happiness.
But people using this script prioritize wealth accumulation at the expense of everything else, meaning their health or relationships. Those are the people who are on their fourth heart attack, their fifth wife. It’s just not ideal.
And they’re not fun to be around because everything’s about money.
These people equate their self-worth with their net worth.
They believe their financial success determines their value as a person. So if they’ve got money, they’re worthy; if they don’t, they’re not.
Most of these people are rich. They have high incomes and high debt. And they either fall into the money worship or the money status.
It’s so important for them to look like they have money. They don’t, but they want to look like it. And you see this a lot in different country clubs and communities, and it can be such a vicious cycle.
So you just have to be aware of it and careful not to fall into it.
This involves a heightened sense of anxiety or secrecy around money matters.
So these people want to avoid hearing anything about money. And they’re the ones that will say, “You’re bragging if you talk about money” because they are super cautious about spending money.
They are often excessive savers and are reluctant to discuss anything.
The Importance of Different Money Scripts
The bottom line is that it is important to understand the different money scripts, determine which ones impact us, and learn how to use them to help develop a healthier relationship with money. We’re not bragging about it, but we can talk about it.
Financial Therapists, Psychologists, and Money Coaches
These experts can work with people to help identify and replace scripts to have a better relationship with money, more overall fulfillment, and a different type of outlook on life. Instead of thinking, “The only reason I’m valuable is because I have money.” Meaning, how tragic is that?
The other thing that experts can do is help you identify common money scripts and the impact they’re having on your life, and how you can use new ones to make better choices that align with your goal so you achieve it.
Because most people don’t want to feel like they’re worthless unless they have money. That’s just miserable.
7 Steps to Healthy Money Mindset
We will look at seven steps to replace negative money beliefs and scripts and create a healthier money mindset.
1. Inventory Your Money Scripts
The first thing you want to do is inventory your money scripts. Now, don’t judge, just take notes.
You want to look at what they are because that’s the first step to being able to replace them.
2. Identify Your Mindset
The next thing you want to do is to identify your mindset around money, both positive and negative. And you want to rewrite negative beliefs into positive affirmations.
Now, this may take you a little bit of time. As you go through, you start identifying that you’re judging people if they have money or you’re making comments. For example, people with money are dishonest or unethical. Instead, why not affirm that people with money are kind and generous?
I’m around a lot of wealthy people.
They are the kindest people and the most generous people I know. And if they weren’t, I wouldn’t be around them. So it’s not true that people who have money are not kind and generous. And if those are the people you’ve met, you just need to meet some different ones.
Create New Beliefs
Go from believing money is bad to loving money, wealth, and what wealth can do.
I use my money to do good and to support “blank.” And then fill in your favorite charity and maybe even how much money you support them with.
I was on Facebook and somebody asked if you need money to be happy. And I said that I don’t think you do.
Fulfilled and Wealthy
But you do need money to live a fulfilled life and do the things you want to do. And it was so interesting because this woman responded and said, you do not need money.
And I was so interested in her response and reaction because this is my research.
I went through her Facebook posts. There were 500 comments, and she went to anyone who said money was important. And, yes, you need money to live fulfilled.
Or some people said happy, which I disagree with, but that you need money.
Choices When We Don’t Have Healthy Money Beliefs
So then I took it to another step. I looked at her Facebook group, and I kid you not.
Two months earlier, her dog of umpteen years needed surgery that cost $4,000. She said it was devastating and that she had to put him down because she couldn’t afford the surgery.
But she could not connect the fact that that’s what money allows you to do. If she had money, she could afford the $4,000 to save her dog’s life.
That’s just a perfect example.
So, again, this is not for you to beat up on yourself. This is just for you to become aware and determine where you show up.
Where can I improve? How can I get a better relationship with money so that I am happy when other people succeed? And I know that that brings me more success.
3. Get Financial Education
Learn everything you can about finances, investments, and money management. This is going to empower you to make better-informed decisions.
It will also help you develop that prefrontal cortex and allow it to come into play when making money decisions. So, it’s more logical and rational than our child’s limbic brain.
I want it now, and I don’t care what it takes, and I will get it.
4. Determine What a Fulfilled Life Looks Like for You
First and foremost, you’ve got to find out what you want, and then you can work with your partner.
But once you know your end goal, creating goals to achieve them is much easier. So does identifying those high-value activities. Those are the consistent actions you’ve got to do so you can achieve your goal.
5. Create a Supportive Network
The next thing you want to do is create a supportive network.
You want to connect with people who also have a healthy attitude toward money and success. And you can tell as you start paying attention. When you start listening to people, you will know when someone is a good influence.
6. Practice Gratitude, Mindfulness, and Meditation
When we cultivate a sense of gratitude for what we have, it’s amazing, but we get more of it. And by focusing on what you’re thankful for, you start shifting from a scarcity mindset where there’s not enough to an abundance mindset.
In episode 38, I dive deep into this. You can go to https://themillionaireinsider.com/38. I’ll link to it in the show notes.
It’s so important because when you have a scarcity mindset, it’s a belief that you’ve got to cheat, steal, and do whatever you can to get your share.
And then you’re always worried, anxious, fearful that there won’t be enough.
It’s just a miserable existence. And being around people like that is not fun.
The Power of Gratitude
As you practice gratitude, give thanks and appreciation for what you have done and achieved, regardless of the size.
So it could be something minor, but be grateful for it.
And then, I encourage you to consider practicing mindfulness. This allows you to become more aware of your thoughts and feelings and how they relate to money.
I want you to work to embody your beliefs and experiences, good and bad, so you can experience them without taking negative actions, like overspending, overeating, or whatever you overindulge in.
Overeating and overspending or too much sex or anything along those lines is really happening because you’re not healthily dealing with your emotions.
Getting Comfortable Being Uncomfortable
The more you can sit in that uncomfortable space when you want to eat, not because you’re really hungry, but because you’re bored, which is what I used to do. Or you want to spend money because you fought with your partner, feel down and out, or because your new friend just got this trendy new purse.
Whatever the scenario, you have to get comfortable being uncomfortable to stay above the grid and make conscious choices that will serve you in the long term relating to your life and finances.
The Power of Meditation
Meditation can be beneficial because it allows you to create a mental space to observe your thoughts and make positive beliefs that align with your goals.
It’s amazing what happens when you start practicing, whether meditation, chants, yoga, or all those things. In addition, it is so powerful and a great way to calm your mind.
7. Get Professional Support
You also want to consider getting professional support.
A qualified therapist or money coach can help you replace money beliefs and scripts that keep you broke. I want to remind you that they are not qualified to help you manage your money. Very few money coaches are also registered, qualified financial advisors. So be very aware of that.
Elevate Your Worth Barometer
One thing that also will help you is to elevate your worth barometer. You can go to https://themillionaireinsider.com/3 to access insight. Your Worth Barometer is a measurement of your beliefs and self-esteem.
A qualified financial advisor can also help when it comes to the management of your money and investments. Rarely are they qualified on the psychological side where a therapist or money coach is. So, just for your information.
Recap – Money Beliefs That Determine Your Future
1. Create a Fulfilled Life
The ultimate goal is to create a healthier and more empowering relationship with money so that you can enjoy your money and your life.
2. Review Common Beliefs and Money Scripts
I encourage you to review the common beliefs and money scripts above and determine which ones apply to you, which ones are serving you, and which ones you need to replace.
Once you’ve identified your money beliefs, you can see how they impact your financial decisions and even your net worth. How you spend money, save money, what you do, and what you don’t do.
3. Review 7 Steps to Healthy Money Mindset
I also encourage you to follow the seven steps to identify and replace your current money scripts that are not aligned with your goals. And create new ones that support you in living fulfilled and wealthy.
4. Create New Alliances that Support a Secure Financial Future
You can create relationships with others who want to secure a retirement and bright financial future.
It’s so much easier to do this journey of money and life if you’ve got like-minded people alongside you.
5. Get Comfortable Talking About Money
Continue to increase your comfort in talking about money and supporting others on their financial journey.
So there you have it. I encourage you to go back and review this episode. And more importantly, apply the concepts we dove into today.
You’re going to be so glad you did.
Until our next episode, take one action that will help you create a secure financial future and retirement you love.
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Thank you so much for joining me for
Money Beliefs that Determine Your Future
I’m Annette Bau (Bah oo), host of the Wealth Inside and Out® podcast. All international copyrights are reserved.
Bye for now.