4 Steps to Rewriting Your Money Scripts (and Your Money Success?Story)

Your money scripts are your invisible beliefs about money often formed in childhood. They play a big part in financial decision-making. Understanding money scripts is crucial to achieving your financial goals. In this article, I explain money scripts and how to use yours to your advantage. Any financial plan you forge must consider your money scripts.

Why are money scripts the most important, least discussed part of your financial freedom plan? Consider:

• Academics once believed that “rational humans make financial decisions based on logic and fully available information.” No longer. Humans are not robots. For most of us, human emotion (often very irrational) reigns supreme. Money scripts help us understand our own irrational money behaviors.
• Money scripts fill a gap in financial planning. A plan is only as good as our ability to apply it. A complete financial plan is personal, comprehensive, supported by math, and actionable. Our actions need to match our emotional capabilities?—?as influenced by our money scripts.
• Often, our first money challenges show up as disputes with life partners. Money scripts explain our unique money perspectives. When we understand our scripts, we see how a partner may have had different experiences with money. Then we can take steps to align our views where possible.

Unraveling our invisible money beliefs empowers us. We can make informed, conscious financial decisions that align with our values and financial goals.

The TL;DR is about making the invisible visible

Money scripts are invisible beliefs you likely didn’t know you had about money. Your scripts define how you view money.

Though often portrayed in a negative light, these four high-level money scripts are not inherently bad:

Money avoidant implies you are not prepared because you ignore money. But I disagree: You clearly understand that money isn’t everything! Money shouldn’t be central to living a happy and fulfilled life.

Money worship implies you are a money-grubbing Ebenezer Scrooge. But I disagree: Money worshippers are great at building wealth. With lots of money, you can do great things in the world.

Money status implies you have big houses, fast cars and are in massive debt. But I disagree: You believe there will always be more money out there. It’s the classic growth mindset. This outlook helps you shoot for the stars.

Money vigilance catches a break. Yes, you are a strong saver. But it also implies you are miserly and selfish. I disagree: You exhibit many healthy money behaviors. You save. You’re financially prepared. You look for value. Stay balanced in your approach to be successful.

“Any financial plan you create has to align with your money scripts. Money scripts capture the human nature of your financial success (whatever success means to you).”

Take these four steps to rewrite your money scripts and your personal financial success story:

1. Understand money scripts and their pros and cons
2. Make your invisible money scripts visible
3. Consciously develop your preferred money scripts
4. Acknowledge the scripts in your financial freedom plan

Let’s get started…

Those formative years pack quite a?punch

What is your first memory of money? Did your parents teach you to save? Did the family business fail? Was your mom or dad a super-duper coupon clipper?

Your childhood experiences left a mark on you… a mark that impacts your relationship with money (even more than you know).

Money scripts defined:

“Your unconscious beliefs about money, often rooted in childhood, that affect your adult behaviors and perspectives.”?—?Dr. Ted Klontz, 2011

I come from a typical midwestern, middle-class family. We didn’t go without. We weren’t extravagant. We visited a restaurant only once or twice a month. We never ordered appetizers or desserts. I learned the value of saving and compound interest from an early age. I opened a passbook savings account when I was 10. I knew to fund my 401k the moment I got my first real job. I’ve been saving ever since. I couldn’t understand why others wouldn’t…until I discovered money scripts.

I learned that my primary script is money vigilance, and it comes with advantages and disadvantages.

As you read on, think back to your childhood experiences and other financial flashpoints. Those experiences played a formative role.

Understanding the money script framework

Most of what’s written about money scripts centers on the four major types. I call these: the four money “super” scripts. They cover the full inventory of 32 money scripts that I share near the end of this article.

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Continue reading at choosyconsultant.com.

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Brian Herriot writes and rewrites his money scripts (and his blog) from his home in Alameda, California, and cabin in Hazelhurst, Wisconsin. He also prepares financial freedom plans for consultants and other mid-career professionals in one-week sprints. Check out his take on a new and different kind of retirement at choosyconsultant.com.