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Any of your previous money experiences can affect the way you handle money today and long into the future.
A lot of people often deal with money at an emotional level. This can negatively impact their ability to make sound financial decisions. This is why many end up resisting advice and guidance that is given directly to them despite coming with a lot of evidence backing it.
Far too many people spend too much money, don’t invest properly, and don’t get the requisite insurance they need. Far too many people make financial decisions on emotions which is something that should be avoided at all costs. Sometimes it is unavoidable to take out a loan, such as poor credit car finance. Going into any financial decision without a plan is a big mistake. Likewise, they don’t enjoy themselves in the various stages of life nor do they use their money to make more money.
Here are some of the top questions to ask yourself:
- What money messages did you get from those who raised you?
- What did they do and how did they make you feel?
- What kind of advice did your grandparents give you?
- How did they deliver the advice and how did it make you feel?
- What are your best financial decisions you’ve made in the past?
- What made that decision a good one and what are the steps you took to make it?
- Why is money important to you?
- Do you understand why you feel the way you feel?
The Exercise
To take this even further, you want to take some time and answer the following questions as honestly as possible. That way, you can examine your answers and get a good idea of how your past decisions are impacting your current decisions.
1. What Is The First Joyous Memory Of Money You Have?
This is something that you want to delve deep into the past for an answer. For many, it occurs when they are very young. Think long and hard about it. By finding out what memory first established your relationship with money, you should have a much better idea of why you feel the way you feel. Think about where you were and who you were with. Think about what events led to you making your decision. How did you end up reacting?
2. What Is Your First Painful Memory Of Money?
This is another question you want to ask yourself. Don’t think about something that just happened. Instead, think of your first memory. That way, you can figure out what might be causing your relationship with money to be negative. Consider all of the details involved with that experience. Where were you? Who were you with at the time? What prompted it? How did it turn out?
The Results
By identifying and answering the questions above, you should have a good idea of what your relationship with money is and where it came from. You can look at these memories to see whether or not they are currently affecting you as you continue to make major decisions regarding your finances.
How did the joyous past money experience end up impacting the way you think about money as a full-grown adult? Think about the painful memory, as well. If possible, try to look at the painful memory you remembered and try to twist it into something more positive. For instance, if your family didn’t have money growing up and you couldn’t get everything you wanted as a kid, you may want to use that as a springboard to being better with your money as an adult so you can give your child what you never had.
