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Managing money can be challenging. Much of it relies on personal habits and perspectives, with your history of money playing a significant role in shaping your financial habits.
Forbes contributor and Certified Financial Planner Michael Kay refers to this as your 'money story.' It’s shaped by your past relationship with money—how your parents managed it, the impact it had on your life, and other related experiences. While you can’t alter your history, understanding your money story better allows you to avoid letting it interfere with making wise financial decisions in the present.
Kitces recommends documenting your money story and then reflecting on a set of questions. Some examples include:
What lessons about money did you learn from your parents?
Do your current beliefs align with your core values?
If you had the chance to rewrite your money story, what would you do differently?
What would help you create a new financial narrative for yourself and your family?
Changing unhealthy financial mindsets is challenging, but gaining insight into them is a significant step forward. For further reading on this topic, check out his complete post.
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