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How to Handle Financial Stress in a Relationship

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Handling financial stress with a loved one, in many ways, is far better than suffering through it alone. However, stressing out about money can have a heavy impact on a relationship, whether it be romantic or platonic. So, how do you go about handling financial stress without adding stress to your relationship? 

There’s no 1-2-3 answer to this really. In many cases, the dynamic of the relationship will determine how financial stress is handled. However, there are some steps you can take to ease the stress on your relationship and place it where it belongs: on fixing your finances.

How to Deal With Financial Stress in a Relationship

My significant other and I have been living together for about a year and a half. Up until recently though, we were pretty strapped financially. It took a lot of discipline and hard work. We paid off debts, saved money, and made things happen quickly. One of the main contributors to our success in doing so was not allowing the financial stress to damage our relationship. Here’s how we did it:

  1. Be open and honest about money. One key step in our success to overcoming our financial stress was communication, and it will be on your journey as well. If you are sharing finances with this person, and plan to do so the rest of your life, you can’t be afraid to talk to them about it. A huge thing for us and many other couples is being able to find a tool that we could use to monitor all of the finances in the house. We did this by sharing a Mint budgeting account. We added all of our accounts and reminded one another of due dates, savings goals, and had a good idea of where we were financially at all times.
  2. Talk about areas you messed up and discuss your losses. Before we got to that great place where we were communicating about our finances well, we messed up. A lot. Don’t be afraid to admit when you’ve messed up, but also work with your partner on ways to prevent it from happening again. Talking about where you messed up and how it happened can prevent financial stress down the road. For instance, we went over budget at Christmas time and, subsequently, had a really tight budget at the beginning of the year. We discussed having additional savings this year for Christmas (because we both love the holiday). Discussing it took the stress out of the relationship and placed it back on the finances like it should be.
  3. Always appreciate the little things. When you are broke or seriously working on your finances, you don’t have money to spend on spoiling your significant other, and that sucks. You can still do a lot of little things that will make a world of difference though. When dealing with financial stress in a relationship, focusing on the little things can make-or-break it. While we were experiencing hard times, my other half brought home $1 coffee mugs (I love coffee), or he would bring home my favorite snack. Although these things didn’t cost much, they meant a lot.

Don’t Be Afraid to Get Help

Whether it is relationship counseling or financial counseling, always remember that reaching out for help is a possibility. Don’t be afraid to reach out to a financial advisor or relationship counselor to help you navigate these tough times. There are many affordable counseling services available.

Dealing with financial stress in a relationship can be tough but as long as you keep communication open, work together, and reach out for help when you need it, you and your partner will be on your way to financial success in no time!

Read about how to maintain your financial momentum. 

Is the Secret to Growing the Economy Canceling Student Loan Debt?

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The United States economy has seen better days, that’s no doubt. The stock market recently saw one of its worst trading days in recent history. Many economists have been debating what could help mend the current climate. Could the secret be forgiving student loan debt?

A recent report says yes. The easiest way to ease the pressure being felt by more than 44 million Americans is to forgive all student debt. (And I’m not just saying that because I’ve got about $24K in student loans…)

A group of economists at the Levy Economics Institute of Bard College found there could be some great benefits if the federal government were to forgive student debt. The report details how young people struggling to pay off a massive amount of debt from college will help the economy as a whole.

While it may sound like a fantasy, it is possible, and it could have a significant and positive economic impact. The report found that canceling all student debt could potentially lead to an increase in U.S. GDP (gross domestic product). How big of an increase, you ask? Economists predict the increase could land anywhere between $861 billion and $1,083 billion over the next 10 years.

In addition to increasing the GDP, economists predict that canceling student debt would also lead to an increase in new jobs (an estimated 1.18 to 1.55 million).

Why is Canceling Student Loan Debt Such a Big Deal?

Why would forgiving student loan debt have that kind of impact on the United States economy? Well, the answer is pretty simple. There are more than 44 million Americans with some type of student loan debt hanging over their heads. Giving 44 million Americans a clean slate, where student debt is concerned, could help the economy greatly. The collective student loan debt in the U.S. is $1.3 trillion, which is higher than credit card debt and auto loan debt held in the U.S.

Who Would Pay the Student Loan Debt?

If the federal government decided to go about canceling student loan debt, it wouldn’t be that difficult. The problem, economists seem to believe, is that government officials consider paying the student loan debt as a zero-sum game. However, canceling student loan debt will free up tons of money to be put back into the economy.

Lawmakers have been able to provide massive tax cuts, and canceling student loan debt would be about the same. In fact, they’d be spending nearly the same amount of money to do so. Economists also found that canceling the debt could also help alleviate poverty.

As you probably know, poverty tends to be a cycle. Generally, people who grow up in poverty tend to live in poverty as adults. However, many people attempt to break the cycle of poverty by going to college. Canceling student loan debt could help ease racial disparities in debt and education. Canceling student debt would help keep borrowing/loans from continuing to support the racial wealth gap between the number of people in the U.S. looking for career opportunities and better employment through higher education.

Final Thoughts

It is your typical millennial response to be like, “Oh yeah. Cancel all the student debt.” However, it could make a significant impact on the economy. Taking into consideration my own student loan debt, I know it would free up $275 a month (more than $3,000 a year). Of course, some of that would go into savings, but a lot of it would also go back into the economy. (In fact, there are things I know I could buy with that money).

So, what do you think about canceling student loan debt? Would it help you? Do you think it’ll help the economy? Let me know in the comments! 

You may also enjoy reading:

Meal Prep 101: How To Save A Ton On Groceries

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When it comes to saving money and eating well, one of the best things you can do for your diet is to meal prep. Meal prepping can loosely be defined as making your meals during the weekend or really any day that works for you, and using those meals to eat on for the rest of the week. While it does sound simple, it’s also one of the best ways to save a ton of money on groceries, as well as eat better for the whole family. The United States has a big problem when it comes to obesity, and one of those main reasons is because there is a ton of food out there that is for convenience, but also horrible for our health. If you want to get the most out of your money, you may want to consider preparing your meals. Why pay more for food that’s only going to be bad for you? Step up your meals and save big money on those grocery bills when you start meal prepping.One of the biggest epidemics when it comes to the social problems the United States has is food waste. Although it may seem simple, meal prepping does a lot of things for us. It gives us healthy foods, it’s a great way to save money, and it’s SO much better for the environment. There are so many tons of food wasted in the United States every year, and if you can cut down on that by making your food ahead of time and cooking meals that you know your family will love, but won’t cost an arm and a leg, you’re doing great things for so many people.

The first thing you should do when you want to start meal prepping is to make a list of your favorite foods. It’s a good idea to make foods that you won’t want get too tired of by the end of the week, are relatively easy to make, and are cheap. If you don’t have any meals of your own, there are tons of recipes out there for meal prep recipes for just about any reason you might want it. From weight loss centric, to the most frugal meals, you can pretty much find everything you need when it comes to meal prep meals. If you want to get a leg up, find recipes that your family loves, and are easy to freeze, reheat, and won’t go bad quickly.

Once you have a few recipes that you love, you should go on your shopping trip. Generally, meal prep is a great way for busy people to maintain their schedules and save money on food. If you have all your meals planned out, you won’t be wasting money on ingredients that you won’t use and will go bad. So make sure that when you meal prep you’re getting great items that are nutritious for the whole family. Looking for a place to eat those delicious meals? Save even more when you use this Lexmod coupon for huge savings on dining essentials and more.

What Are the Best Online Registries?

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<p>Last week we talked a bit about virtual baby showers and some of the awesome ideas people have come up with to celebrate a new arrival virtually. In addition to there being a number of ways to celebrate from afar, there are also a plethora of ways to register for and receive gifts from loved ones (no matter where they are). Here are some of the best online registries I've found so far (plus the perks they offer).</p>;;Pexels

Last week we talked a bit about virtual baby showers and some of the awesome ideas people have come up with to celebrate a new arrival virtually. In addition to there being a number of ways to celebrate from afar, there are also a plethora of ways to register for and receive gifts from loved ones (no matter where they are). Here are some of the best online registries I’ve found so far (plus the perks they offer).

Best Online Registries for Weddings

There are a number of online registries out there. Depending on what you are celebrating, there may be different options out there for you. Here are some of the best places to register online if you are getting married.

Amazon

Amazon will be listed here a few times because, among all of the online registry options out there, it is the best. You can register for a wide range of items, track what has been purchased, and send virtual thank you notes to each of the people who purchased something from your registry. It makes things really easy. For weddings, you can even add things like Southwest Airlines gift cards, Airbnb gift cards, and other monetary gifts to help you celebrate your big day.

Bed Bath and Beyond

If you and your spouse are moving in together or buying a new home after your big day, a Bed Bath and Beyond registry is also a good option. There are a number of coupons available for the retailer, so your guests can save some money. Plus, you have a full year after the gift is purchased to make a return. This way, you don’t have to go rushing around after your wedding.

Blueprint

Blueprint is an awesome online registry option because you have access to 50+ retailers through the site. They also just have a cash gift option, which is nice.

Honeyfund

Honeyfund is another registry option rising in popularity for newlyweds. This allows your guests to contribute to experiences or honeymoon costs instead of physical gifts. They can give money towards airfare, hotel stay, or experiences during your honeymoon.

Target

Target is always a good place to register, no matter what the occasion is. Like Bed Bath and Beyond, you’ll have a full year to return any gifts from your registry.

Zola

If you are planning your wedding through Zola, you may also want to do your registry through them as well. This website is truly a one-stop-shop for everything to do with your big day. The site also gives you access to more than 450 brands, making it pretty user-friendly no matter what you want to add to your registry.

Best Registries for Baby

After your big day, you may be planning a family, so you’ll need to create a new registry for your baby. Here are the best registries online for baby showers.

Amazon

As mentioned above, Amazon has a plethora of options when it comes to what you can add to your registry. Some of the perks to your baby registry include a diaper fund people can contribute to, group gifting options, and item suggestions. Amazon also provides you with a checklist of everything you need for your baby (things you may not have considered). Once you (or someone you’ve shared your registry with) purchase $10 worth of items from your registry, you’ll also get a free registry box from Amazon with some samples and things like baby socks. On top of that, Amazon also gives you a completion discount. So, after you’ve reached a certain point in your pregnancy, things on your list will be marked down.

Buy Buy Baby

Buy Buy Baby is a sister company of Bed Bath and Beyond. One of the biggest perks of registering here is that any coupons for Bed Bath and Beyond can also be used at Buy Buy Baby. You can receive a completion discount on your registry (between 10% and 15%). The store also does price matching. On top of all that, they also offer a free box of goodies with coupons and samples that you can pick up in-store.

IKEA

IKEA is a great place to register while you are putting together the perfect nursery for your little one. They carry cribs, changing tables, high chairs, and even a few baby toys. You’ll also be able to register for closet storage items, which is always a plus when it comes to putting together a nursery. Gift-givers who are buying things off the registry will also receive a family discount at checkout.

MyRegistry.com

If you just can’t decide which retailer you favor or want to condense your lists from each, MyRegistry.com is a great place to start a registry online. You can add gifts and items from literally any online retailer to your registry. As if the added convenience wasn’t enough, you’ll also be able to reap the benefits of any completion discount the retailers offer. For instance, Buy Buy Baby items on your list will be eligible for up to 15% completion discount.

Pottery Barn Kids

Pottery Barn Kids is another great place to register when you are piecing together your nursery. Like many of the others listed here, they offer a completion discount (20%). The discount is valid for up to six months after you’ve given birth.

Target

Target is another retailer that has a great online registry for your new arrival. One of the biggest perks of registering with Target is that you’ll get 15% off of whatever you don’t receive after your baby has been born. You can also stop by guest services at a Target location and ask for your baby registry gift. Their box is packed full of coupons and samples ($50 value).

Walmart

There are Walmart locations all around the United States, making it an accessible place for anyone to purchase items from your registry. The retailer also offers a price-match guarantee on items from most other stores including Amazon, Target, and Kohl’s. Similarly, they also offer a welcome box with coupons and samples.

Registries for Other Occasions

Even if you aren’t getting married or having a baby, there are plenty of things you may want to celebrate. For instance, you may be moving into a new home. Consider registering at one or more of these places.

Amazon

Once again, Amazon is a great place to start. They have literally everything you could think of when it comes to putting together a housewarming registry or list for another type of celebration. In my opinion, it is one of the best online registries out there simply because of its convenience.

MyRegistry.com

Besides Amazon, MyRegistry.com is another great pick for creating your online registry. You can add items from literally any retailer that has a website. This makes it much easier to find and receive exactly what you are looking for.

When it comes to celebrating other occasions, many of the options listed above are great too. Walmart, Target, Bed Bath and Beyond, Pottery Barn, IKEA, and other retailers all offer online registries to make your gift-giving and receiving easy.

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How to Throw a Budget-Friendly Baby Shower

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<p>You may be just as surprised as I was to learn there are actually people who go into debt throwing their own baby shower. I have been checking out Pinterest boards and subreddits and, believe it or not, there are people that really spend thousands for their shower. Insane! We won't be running our credit card for anything for our celebration. Here is how we plan to throw a budget-friendly baby shower.</p>::Pexels

You may be just as surprised as I was to learn there are actually people who go into debt throwing their own baby shower. I have been checking out Pinterest boards and subreddits and, believe it or not, there are people that really spend thousands for their shower. Insane! We won’t be running our credit card for anything for our celebration. Here is how we plan to throw a budget-friendly baby shower.

The Average Cost of a Baby Shower

Baby showers typically cost between $100 and $1,000. Some showers may cost even more if you are anticipating a large number of people. I read about one couple who expected their shower to cost nearly $4,000! So, what makes up this seemingly astronomical cost?

First, the food people are eating is a huge part of the budget. Many people have their baby shower catered, so you are paying the caterer a “per person” price. This adds up quickly! Then when you factor in the cost of the cake, which can be up to $4 per serving, the price of food for your shower may be startling.

The next largest expense for your baby shower is the location. While some people choose to have it in their home, many people rent out a community center or other space for the shindig. Depending on your location, this can cost $200 and up.

Many people spend a fair amount of money on invitations and decorations as well. Invitations cost anywhere between $0.50 and $1 per invite. Decorations for the party can cost between $50 and $200 or more, depending on the size of the party and how many decorations you need to buy. Not to mention, you’ll need to buy plates, cups, napkins, and silverware as well.

On top of all of this, people generally play games at baby showers. So, you’ll need to purchase what you need for the games as well as prizes. For instance, our shower will have a diaper raffle. For every pack of diapers and/or wipes someone brings, they will be entered into the raffle for one of three prizes. You may also want to include party favors for your guests as well.

Tips for a Budget-Friendly Baby Shower

As you can see, the cost of a baby shower can start to add up really quickly. We have been able to cut costs in a few areas that will save us a bit of money. Here are some tips I’m using to throw a budget-friendly baby shower…

  • Hold it at a time where finger foods are acceptable. We are having our baby shower at 1 p.m. and providing finger foods. I’d suggest checking out some of the Aldi charcuterie boards, which you can put together really cheaply!
  • Have your baby shower somewhere free. We are having our shower in our home, so it’ll be 100% free. If your house isn’t big enough to hold a shower, look for free venues around you. Many parks offer covered picnic areas for events for free or cheap.
  • Get close friends and family to chip in. My mom and a few of my close friends are pitching in for the big things (food, cake, prizes for the games). Talk to your folks to see who might be willing to help.
  • Keep it small! We only invited about 30 people and expect about half of them to show up. Keeping it small will help keep costs low all around.
  • Send e-invites. We didn’t stress sending paper invites out. Instead, we just created a Facebook event and invited everyone that way. Those without Facebook we called or invited in person.
  • Don’t stress decorations. I think we will spend less than $50 total on decorations. Remember, the most important thing is that you spend this time with friends and family.
  • Hit the dollar store. When it comes to plates, napkins, silverware, and some of the prizes, we are hitting our local dollar store. You don’t have to spend an arm and a leg on these items.

Readers, how much did you spend on your baby shower?

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Will Trump Make It Harder to Discharge Student Loan Debt?

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Bankruptcy Rules Might Go Up for Review

<p>According to the G.19 Consumer Credit Report recently released by the Federal Reserve, America's total student loan debt has topped $1.5 billion – and we are having trouble paying off that debt. At of the end of 2017, a whopping 11 percent of student loans were either ninety days delinquent or in default.</p>::Pexels

According to the G.19 Consumer Credit Report recently released by the Federal Reserve, America’s total student loan debt has topped $1.5 billion – and we are having trouble paying off that debt. At of the end of 2017, a whopping 11 percent of student loans were either ninety days delinquent or in default.
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Why Does A Hard Credit Inquiry Affect Your Credit?

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If you are trying to better your credit score, most sources tell you to stay away from applying for new credit cards and loans. However, if you are building your credit from scratch or had no credit, you’ll need to apply for a line of credit.

The reason most advise against applying for new credit is that hard inquiries can actually hurt your score. But how and why does that happen?

What is a credit inquiry?

Before you find out how and why hard inquiries can impact your overall credit score, you should know what an inquiry is exactly. When you apply for any new line of credit, you give those lenders permission to acquire your credit report. Some companies may pull an inquiry about you without you asking, these will have no impact on your score. Your score only has the potential to be affected if you are asking for more credit. You can check your credit scores with CVS Ltd, or other similar services. 

Will your credit score change after applying for new credit?

Your credit score will go down a few points when you apply for a new line of credit. This is because your risk level goes up for lenders if you are actively looking for more available credit, especially if you apply for multiple sources of credit at one time. However, hard inquiries like auto loans, student loans or a mortgage will not impact your score much (if at all).

Lenders consider you to be a high risk if you apply to several lines of credit within a short period of time. For example, if you apply for five new credit cards in one week your score will likely lower due to the fact that you are seeking so many new lines of credit. A lender may see this and wonder why as well as wonder if you’ll be able to pay all your new inquiries back.

How much does a hard credit inquiry affect your credit score?

The impact on your individual credit score after applying for new credit will vary, depending on your own personal credit history. If you have very few accounts or a relatively short credit history, credit inquiries will have a more serious impact on your score.

Not all inquiries are treated the same either. For instance, if you are shopping around for a good mortgage rate, the inquiries will not impact your credit score while you are looking. It will count the inquiries made within the same time period as one inquiry instead of multiple (about 45 days time).

Improving Your Credit Score

<p>Knowing that making hard inquiries can have an impact on your credit score can make you want to avoid opening new credit lines. If you’d like to improve your credit a bit more before applying for new credit, here are a few things you can do:</p>::Pexels

Knowing that making hard inquiries can have an impact on your credit score can make you want to avoid opening new credit lines. If you’d like to improve your credit a bit more before applying for new credit, here are a few things you can do:

  1. Make sure you pay your bills on time. Looking at the graphic above, you can see that payment history makes up more than a third of your credit score.
  2. Keep the balances low on your current credit cards. Available credit is a key contributing factor when it comes to your credit score makeup.
  3. Open new accounts responsibly. Don’t take credit you don’t need and be sure to always pay your bill on time.
  4. Check your report regularly. You can use an app like Credit Karma to check up on your score weekly and be sure everything looks the way it should as well as track your progress.

Building and improving your credit can be extremely difficult if you aren’t 100% sure how different factors impact your credit score. Avoid making multiple hard inquiries on your credit within a short time period and, of course, stay on top of your finances by regularly monitoring your score.

Photos: airpix and CafeCredit.com

When Can You Be Taken To Court Over Debt?

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Taken to court over debt

Repaying your debt is stressful enough without having to deal with debt collectors and, even worse, lawyers. You may have heard horror stories of people being taken to court over debt. If you’re like me, you probably push those to the back of your mind. In some cases, those stories don’t even seem real. However, you can be taken to court over debt and millions of people have been.

Are You in Danger of Being Taken to Court Over Debt?

You can be taken to court over a number of different kinds of debt, including medical debt, auto loans, business debt, and even credit cards. The only debt you’re not likely to be taken to court for is a foreclosure. In most cases, the mortgage company is able to resell the property and you won’t be taken to court for that.

One of the best ways to stay on top of whether you are in danger of being taken to court or not is to open your mail. Believe it or not, many people just throw away mail that comes in. Sometimes people throw away important notices regarding debt. If you do that, you could land yourself in court to settle those debts.

What To Do

Finding out that you are in danger of being taken to court over debt is enough to send your anxiety through the roof. The first thing you should do after you find this information out is to contact some kind of legal aid. Some lawyers will offer you a discount or even a free consultation for your problem. In some cases, lawyers will provide their services for cases like these pro bono.

Next, be sure you do research on what the statute of limitations is on the debt you owe is. For different debts, the amount of time changes. It also varies from state to state. Additionally, your “time” can restart in some cases. You’ll want to be sure you’ve educated yourself about these limitations before getting too upset. It may turn out that you are no longer responsible for the debt (though you should never have that mindset).

Once you’ve done those two things, decide on how you wish to move forward. If you cannot pay the debt, you may be able to work out a settlement or payment arrangement within the court. Take a step back and assess what the best plan of action will be for you.

Readers, have you ever been taken to court over debt? How did you handle it?

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Use The 365 Day Money Challenge to Start Your Savings

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Just a few years ago it seemed like different challenges were popping up all over the internet. If you want to lose weight, there is an internet challenge for it. If you want to drink more water, there’s a challenge for that. Similarly, people who want to save money have internet challenges as well.

The first few money challenges that came out were designed to help people begin saving or add to their existing savings. One of the very first, the 365 Day Money Challenge, helps those who take the challenge save one penny at a time.

 

What is the 365 Day Money Challenge?

In short, the 365 Day Money Challenge is a fun way to save money. It was designed by internet users to help others save and create a community of people with similar financial goals. Like other money challenges, the 365 Day Money Challenge helps you save money by giving you a structure and set amount to save each day over a year (365 days).

How to Do The 365 Day Money Challenge

Every day you add more money to savings with the 365 Day Money Challenge. On the first day you save $0.01; day two, $0.02; day three, $0.03 and on the 365th day $3.65 (as illustrated in the photo below). After the year is over you’ll have saved $668.

<p>The 365 Day Money Challenge is a great way to add some additional cash to your savings or kickstart your savings. Many people have also used the money challenge to teach their children about saving. Either way, it is a fun way to go about saving. Click here for a downloadable version of the 365 Day Money Challenge.</p>::Pexels
The 365 Day Money Challenge is a great way to add some additional cash to your savings or kickstart your savings. Many people have also used the money challenge to teach their children about saving. Either way, it is a fun way to go about saving. Click here for a downloadable version of the 365 Day Money Challenge.

 

Other Money Challenges

If the 365 Day Money Challenge doesn’t appeal to you but you like the idea of a money challenge there are plenty of others to try as well. Below are some of the most popular challenges you can try:

  • 12 Week Money Challenge – Taking a money challenge for an entire year can seem a bit overwhelming. Scaling it down to 12 weeks can make it a bit more manageable. You can save $1,000 in just 12 weeks with this challenge.
  • 30 Day Money Challenge – An even shorter challenge is the 30 Day Money Challenge. The challenge lays out a structure that helps people save $500 in one month.
  • $5 Bill Challenge – The $5 bill challenge is a bit different. Instead of contributing money to savings every day, week or month you contribute every time you receive a $5 bill in change. Each time you do the $5 goes to savings.
  • 52 Week Money Challenge – The 52 Week Money Challenge is similar to the 365 Day Money Challenge. Both take a year. However, the 52 week challenge helps people save about $1,400 throughout the year.
  • Reverse 52 Week Money Challenge – The Reverse 52 Week Money Challenge is the same as the 62 Week Money Challenge but in reverse (as the name suggests). You start out saving $52 in week one and only $1 on week 52.
  • Bi-Weekly Money Challenge – Many people get paid bi-weekly so contributing to savings every other week works better for some people. This still takes a year and you’ll save $1,400 (like the 52 week challenges) but you can schedule it with your pay schedule (if you’re paid bi-weekly).
  • Money Challenge for Couples – Couples and finance can be rough. Trying a money challenge together can bring you closer together. There are many different challenges for couples to try, including daily, weekly and monthly saving structures.
  • Money Challenge for Kids – Teaching kids to save with a money challenge can be fun as well and you’ll be teaching them something they’ll use forever. There are multiple different challenges available for kids out there, most involve small amounts of money.
  • Money Challenge for College Students – A lot of college kids have to learn to save pretty quickly. Using a money challenge for college students can help them get a kickstart.

Whether you’re looking to start saving, add to your savings or save for a specific purchase trying a money challenge like the 365 Day Money Challenge can be great. Will you try one?

Photo: The Stingy Saver

What Do Brad Klontz’s ‘Money Scripts’ Say About You?

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<p>There is no doubt that money can cause some problems. Financial stress is something practically everyone deals with at some point in their lives but what do we know about how finance impacts your psychosis? How do people think about and act towards money and does it have an effect on their financial lives?</p>::Pexels
There is no doubt that money can cause some problems. Financial stress is something practically everyone deals with at some point in their lives but what do we know about how finance impacts your psychosis? How do people think about and act towards money and does it have an effect on their financial lives?

Dr. Brad Klontz believes so, which is why he came up with the “money scripts.” He hopes that these scripts will help individuals identify how they approach money and be able to better manage their finances.

What are the Money Scripts?

Klontz’s money scripts are broken down into four separate categories (avoidance, worship, status and vigilance). Each of these categories describes how a people thinks about money and, therefore, how they may act towards finance-related problems and topics. Here is a break down of each category in the money scripts:

  • Money avoidance – People that fit within this money script tend to think that money is bad. Those who fit the money avoidance category will also think that the rich are greedy and that they don’t deserve the money that they have.
  • Money worship – This money script refers to people who think that money can solve all of their problems. They also think that money can bring both power and happiness.
  • Money status – The money status script fits people who like to have the best and newest of everything. Having these nice things, to them, displays that they are wealthy (even if they bought it on credit).
  • Money vigilance – This is likely the least damaging of the money scripts. Those who fit into the money vigilance script place emphasis on saving and being frugal. They also make sure that no one knows how much money they make or have.

Knowing what the money scripts are won’t help you unless you know what they mean though. So, how can you use money scripts to your advantage?

If you’re interested in money scripts you may also enjoy: 

What the Money Scripts Can Teach You

Depending on what money script you identify with most you can determine what trouble you may have with money. Each money script poses a problem…

  • Money avoidance – Someone who fits into the money avoidance script, for instance, may not make as much money as someone else because they don’t think money is important. This can lead to some hard financial times though (especially if you don’t negotiate regular cost-of-living pay raises).
  • Money worship – Money worshippers will most likely have trouble with never having enough money. These people will likely be workaholics and find very little joy in spending time relaxing. Those who fit into this category will also likely have health issues like high blood pressure.
  • Money status – Those who fit into the money status script will likely have a lot of nice things but may struggle with debt. Money status people like nice things and tend to buy them (even when they don’t have the cash). This can cause huge financial trouble.
  • Money vigilance – Those who fit within the money vigilance script are more prone to relationship issues. People who are financially conscious can sometimes come off as cheap, which makes others not want to hang out that much.

If you look at the money scripts and find which you fit into you can better prepare yourself financially for the future. You can also notice when you are being financially destructive and prevent yourself from digging a hole.

No matter what money script you may fit into you can improve yourself financially. Check out these Three Radical Debt Reduction Steps.

What money script do you best identify with? Is it holding you back? For more information, check out the video below: 

Photo: Seer Interactive