Understanding your money script - Easton Mossman, FA
Why are some investors more successful than others at building wealth?
At least a portion of the answer may be found in your personal “money script”. What’s that? Basically, money scripts are your unconscious beliefs about money, often rooted in childhood, that affect your adult behaviors and perspectives. These beliefs are usually formed in childhood and can explain the quirky behaviors you sometimes exhibit with your finances, often seen in individual fears or habits. They could include positive or negative biases seen in thoughts like “rich people are greedy” or “I want my kids to go on nice vacations because I wasn’t able to when growing up.” Traumatic events that lead to a significant financial impact, including the exorbitant cost of long-term care or the death or disability of a family member, can also shape your money scripts.
Gaining an understanding of how we view money, why we spend and invest money, and what triggers our financial decisions could provide powerful insights that can help you make a brighter financial future. For example, were your parents savers or spenders? Were they risk takers or risk avoiders? Do you reward yourself by spending or saving? When you think about investing, are you more focused on the potential loss or the opportunities for gains?
Of course our past financial experiences influence our future choices. What’s important is to understand HOW they influence them and whether that influence is positive and helpful. When we meet to review your portfolio and explore new opportunities, let’s make sure you’re writing a money script that leads to success and greater wealth.