Money Scripts

It is absolutely necessary to manage your personal finances since finances play a role in one’s emotions, sense of well-being, overall mood, and health. To become financially literate, you need to understand what type of money script you are and then adapt to what you need to be. 

There are 4 types of money scripts 

1. Money avoidance - These are people who believe that managing their money is bad; therefore, they avoid doing so at all costs. Having money avoidance is detrimental because it is important to take control of your finances when things may be tough. Avoiding your finances may lead to worse financial problems, pushing you into a loophole of bad decisions and making it even harder to pull out of.  

2. Money worship - These are people who believe that money solves all problems, often leading them to prioritize work and status over relationships. While having more money may lead to an objectively better quality of life, it is dangerous to correlate money with happiness. Meaningful relationships are the cornerstone of happiness, so by putting too much emphasis on work, you may hinder these relationships and ultimately your happiness. Therefore, it is essential to find a proper work-life balance by getting out of this money worship mindset and realizing that money is NOT the cure for all pains. 

3. Money status - These people tend to overspend in order to achieve a certain lifestyle, a lifestyle they believe will give them an elevated status. They may prioritize how their wealth is displayed to others over stabilizing their true wealth. Think about this: you see someone constantly wearing Prada and Gucci clothes. While you may believe that they are extremely wealthy, there is a chance that their finances are tanking. However, they continue to overspend on high-end brands to force the illusion of their status while they are truly struggling. It’s not bad to spend your money on high-end brands, but to do so to allude to wealth you may not have is dangerous for your long-term finances. 

4. Money vigilance - These are people who put an emphasis on saving and keeping quiet about their wealth but may have extreme financial anxiety. While it is important to save money, taking risks is just as important. If an opportunity arises, these people may shut down ideas of major investment due to their immense frugality. If you see yourself in this description, realize that it is okay to take risks and splurge at times, although you need to balance this with your saving habits. 

The reason we understand our money script is so that we can identify any of our negative financial behaviors and fix them. While there is nothing wrong with being a certain type of money script, without being aware of your script and managing it correctly, it can get out of control.