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Money Mindset Makeover: Transform Your Financial Habits Today

This post is sponsored by Canopy Credit Union. Learn more about Canopy Credit Union here.

Personality types, attachment styles, love languages, communication styles – there are countless things to unpack when on a self-discovery journey. Most don’t think to stop and unpack their beliefs around money, and how it may be affecting their life as a whole. It is critical.

At Canopy Credit Union, we believe that understanding your beliefs and values behind your money decisions will help work you towards financial and relational health. Canopy’s financial coaches are fantastic resources to sit down with. They will help you identify your financial values and put a plan in place with the goal being: long-lasting financial wellness.

How to identify your financial values

Many of us spend a lifetime thinking about goals, hopes and dreams, and most of these aspirations are connected to money. There are questions you can ask yourself to gauge where your financial values lie, and they live in five broad categories.

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Ask yourself the following questions:

Achievement and success: To what degree do you see money as a symbol of success or a measure of freedom? Are you driven by the need to achieve results?

Order and security: How important is it to your mental well-being to have order in your financial life? Do you need to feel in control? How much satisfaction do you gain with a sense of security or making progress?

Relationships and money: Do you define yourself through the responsibilities you feel toward those around you (family, friends and even strangers)?

Self-focus and awareness: Do you need financial independence to feel at peace? Do you intuitively feel that you must take care of yourself as a prerequisite for other decisions?

Stress and anxiety: How much do you worry about your financial life? Is your interaction with money plagued by frustration?

Our relationship with money is something most of us will wrestle with our entire lives. So, understanding our beliefs and values can give insight into how to create a financial mindset that allows us to comfortably deal with even the most daunting financial decisions.

Discovering your money personality 

Once you have identified your beliefs and values surrounding money, it's time to figure out what your money personality is. According to Brad Klontz, an associate professor at Kansas State University and author of four books on money mindset, there are four basic attitudes or “money scripts” that most people fall into: money worship, money status, money avoidance and money vigilance.

Of course, these four money personalities aren’t “one size fits all.” You may resonate with a type completely, find yourself reflected in multiple types, or find that these four examples don’t encompass your relationship with money at all. It is a good reminder that just like any framework for understanding human behavior, money personalities are a generic tool to help identify overall behavioral trends.

Read on and see where you think you fit!

Money Worship

Does money solve your problems and always seem to make life better? You may be a money worshiper. Those who fall into the money worship camp believe more money will solve all their problems, or that the status that comes with wealth will magically make all their problems and concerns disappear. Unfortunately, that means they can easily wind up in debt, which doesn’t really solve their problems in the long run.

What should you do if you think money worship is impacting your relationship with your finances? Talk with a Canopy Financial Coach about ways you can learn to manage your money in a healthy way.

Money Status

Do you believe self-worth equals net worth? Do you see people with money as intrinsically superior or more worthy? While these beliefs may motivate you to become more successful and earn more, it might also tempt you to make risky financial decisions or buy expensive, high-status items.

If you’re worried your concept of money status may be leading you to make unwise decisions, put a rule in place that you will always take a few days to consider something before you pull the trigger and create and stick to a budget to avoid overspending.

Money Avoidance

Is money the root of all evil? Do you feel like you don’t deserve more? Money avoiders may ignore their finances, avoid thinking about money and even give money away in order to not be burdened by it. Those who avoid money may believe they don’t deserve it or fear they won’t know how to handle it. They often have low incomes and net worth, and tend to be younger, which may reflect their inexperience and their lack of tools and knowledge.

If money avoidance is causing problems in your life, talk to a Canopy Financial Coach about setting up automatic transfers and payments for retirement plan contributions, savings, loan payments and more. You won’t have to think about your money as much and you’ll avoid getting behind on payments or running short on cash.

Money Vigilance

A penny saved is a penny earned, right? But some who are too vigilant can be secretive about their money and uncomfortable discussing finances with others. That can be a problem.

Those in the money vigilance group do not like to talk about their money and are highly unlikely to spend foolishly. On the downside, excessive wariness about spending can keep the people in this group from enjoying the benefits of what money can buy.

If you’re uncomfortable talking to family or friends but still have money questions, reach out to Canopy’s Financial Coaches for advice. It’s confidential, valuable and free.

Are you interested in learning more about your “money personality?” Take this quick online quiz to find out: https://www.nerdwallet.com/article/finance/money-personality.

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