Build financial confidence, change your life
Your money stories aren't your future
Hi there,
Not everyone is equal when facing money. Money can be a major source of stress or conflict. If you (or your partner) feel any stress regarding money, it might be a sign of a money disorder.
So, what exactly is a money disorder? It refers to problematic financial beliefs and behaviours that leads to frustrating habits that keep messing up our finances. The term was coined by Dr Brad Klontz and Ted Klontz, two pioneers in the psychology of finance.
There are two primary types of money disorders:
Avoidance: They often perceive money as “evil” and view rich people as greedy or corrupt. As a result, they tend to avoid engaging with their finances. This may manifest as not checking bank accounts or neglecting to save or invest.
Worshipping: They believe money is the key to happiness and often tie their self-esteem to their financial status. This pursuit can lead to a relentless chase for money, as they equate their self-worth with their bank balance.
Any of these money disorders can sabotage your ability to build wealth, plan for your future, or affect the quality of your relationships, limit your aspirations, and even become a burden to your family or society.
Money disorders can also impact our choice of friends, hobbies, living situations, and even the types of romantic partners we seek. On top of that, it plays a significant role in our kid’s education and overall upbringing. In some cases, they can lead to financial secrets, conflicts, challenges and trauma in their interactions with their partner or with their children.
As humans, we’re more complex than just fitting in one box, and we could show traits from different money disorders (I can definitely relate). A great way to figure out where you are at is by exploring your Money Archetypes. I’ve written an article on it (here), and you can take the Money Archetype Quiz (here) to find which one(s) you belong to!
Now, here’s the interesting part:
Why one would have a money disorder?
Have you ever wondered why some people struggle with money?
And no, it’s not just because they hate math class!
It’s similar to asking why someone might love Brussels sprouts or choose a particular major in college.
It all boils down to a mix of our personalities and personal experiences.
That’s why siblings can have a similar upbringing yet completely different relationships with money.
What’s fascinating is that many of our beliefs about money are formed before we even turn 10, which means our childhood experiences play a huge role in shaping how we view finances.
OK, I’m screwed, so what?
Are we masters of our money mindset?
Here’s something encouraging: Your past doesn’t dictate your future!
ANYONE can change their financial story at any time.
There are countless inspiring stories of people who have overcome tough childhood traumas and completely turned their lives around.
This transformation is possible because of something called neuroplasticity, aka “the brain's ability to change and adapt in response to stimuli over time” explained Andrew Huberman, a neuroscientist at Stanford University and podcaster of “Huberman Lab”, where he breaks down complex science for a larger audience.
Just check out any Goalcast or even TEDx talks videos, and you’ll find powerful stories of people who overcame their life challenges and changed their fate (which can help put your own experiences into perspective).
I’ve changed my money story, too. I rejected money, overspent it, craved it, gambled it, and ultimately made peace with it to live my wealthy life today.
I did it, so can you!
What’s their secret force?
What strikes me is how many people have faced far worse experiences than my own—and yet, they’ve made it through.
I’m curious about why that is.
One of the most rewarding aspects of being a financial advisor—and even more as a financial coach—is the chance to step into someone else’s life. I’ve reviewed countless budgets, listened to money stories of childhood trauma, and deep money secrets (sometimes even instances of fraud).
The common thread among those who successfully turn their financial situations around is: CONFIDENCE.
In fact, those who reach out to me usually have some level of financial confidence already; if they didn’t, they probably wouldn’t be seeking help or believing they could change their circumstances. Just by reading this newsletter, you’re already showing that you believe, you have hope in your ability to make a change, too!
And when you bring confidence into your relationship with money, amazing things can happen.
There is a direct relationship between financial health and financial confidence.
Once you build a healthy level of financial confidence, you can believe that change is possible. You can rewrite your money story. You can forgive your parents for their past choices—and yourself, too. You believe you can become wealthy. You believe you can live a wealthy life today.
In fact, I’m hosting a Masterclass “Yes to Financial Confidence, Yes to Financial Wellness” in two days, where I reveal my methodology to building financial confidence and re-align your life, I hope to see you there (sign up here).
So, are you a money avoider or a worshipper?
Build your financial confidence, build your wealthy life.
Sophie
PS- Do you have any questions? Just hit reply, and I’ll make sure to include them in my next Masterclass!