Socrates said it best when he said ‘Know Thyself’. Investing is not a study in finance, it’s a study in human behavior. There is no right or wrong way because you can’t sum up behavior with formulas to memorize or spreadsheet models to follow.
Our money mindsets develop at an early age. Some of us have experienced a financial flashpoint in their childhood that is so emotionally powerful it makes an imprint on our belief about money. Was there an event that triggered a change – say a death, divorce or job loss? Was money a source of conflict or worry?
Or was your flashpoint simply an early memory? Maybe it was putting pennies in a piggy bank, or spending your allowance, opening up a savings account with your birthday money. Or did you have “bank of mom and dad” that gave you money whenever needed. Or on the other hand, did your parents drop casual bombs that made their way into your thinking: “rich people are greedy”; “money is the root of all evil”.
Understanding why you make the decisions you do can help you become more conscious about them moving forward. The lessons you learned early form your “Money Imprint”; your hardwired operating system that determines if you stumble or strut in your money life. Ask yourself these questions to understand how your beginnings shape your future.
- Were you aware of the family finances as a child or sheltered from them?
- Were you taught about finances?
- Where was money on the list of priorities for your parents? Why?
- When making the decisions that led you to where you are now, how much of a role did money play (including whether or not to go to college and what to major in)?
So does this mean you’re stuck with whatever you took away from the past? Not hardly. When your money beliefs don’t support you and your values in the adult world, it’s time to construct a new set. You have the power to turn lessons learned from the past into a lifetime of financial success. The simple question to ask yourself… ”What does financial freedom mean to me”?
What do you want? Freedom from debt? A nest egg for retirement? College for the kids? A new house? Travel? A new career? No matter how you started – you can control the now! Once financial freedom is clearly defined, create a plan and maintain a laser focus on getting there.
And next time you get advice from me or any other financial professional, ask yourself this: Does this advice make sense for my life? Does it work with my plan or distract from my ultimate goal? The ability to make changes lies clearly – and strongly – within your power. Please let us know how we can help to move you towards your ideas of “financial freedom”.
Olson Wealth Group is a full service wealth management firm. With wise counsel and clear strategies, our experienced specialists provide tailored approaches that strive to maximize wealth. For more information, please visit OlsonWealthGroup.com
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