#17 – Money Scripts and Emotions Can Raise Your Taxes
Aug 24, 2021
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This podcast explores the impact of money scripts and emotions on tax deductions, discussing how over-emphasizing deductions may cost more than they save. It also delves into the concept of money disorders and how they are developed, as well as the connection between money scripts and traumatic experiences. Additionally, it addresses therapists' concerns with behavioral disorders and the consequences of financial denial and underspending. The podcast provides insights on understanding and modifying common money behaviors rooted in emotional wounding.
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Quick takeaways
Money disorders and problematic money behaviors stem from underlying emotional wounds and past traumas.
Understanding the roots of money behaviors and exploring associated beliefs is key to addressing and modifying them.
Deep dives
Money Disorders and Problematic Money Behaviors
Money disorders and problematic money behaviors are rooted in traumas or dramas experienced in our lives. These traumas shape our stories and behaviors around money, leading to the formation of certain beliefs and scripts. These money scripts become habitual behaviors that organize our financial decision-making. Some examples of money disorders include workaholism, compulsive buying, gambling addiction, hoarding, and financial dependence.
Financial Denial and Understanding
Financial denial is a problematic money behavior characterized by a refusal to acknowledge or confront financial issues, often due to shame or fear. Understanding, on the other hand, involves excessive underspending to the point of neglecting one's own well-being and safety. Overspending, financial enabling, vowing poverty, financial emeshment, squandering windfalls, and chronic poor financial decisions are other problematic money behaviors worth exploring.
Emotional Wounds and Addressing Behavior
All of these money disorders and problematic money behaviors stem from underlying emotional wounds and attempts to cope with past traumas. Understanding the roots of these behaviors and exploring the stories and beliefs associated with them is key to addressing and modifying them. By addressing these underlying issues, we can work towards developing healthier and more beneficial money behaviors.
How much is a tax deduction worth? Maybe less than your money scripts and the emotions that drive them would have you believe. Here are some common ways that over-emphasizing deductions may reduce your tax bill, but actually cost you more money than you save. Find out how separating your money scripts and emotions from the decision to deduct or not deduct can save you thousands and pay financial and emotional well-being dividends. Read more here.
A podcast that blends the nuts and bolts of financial advice with the emotions that drive making them. Rick Kahler, CFP®, CFT-I™, has helped people make better money decisions by integrating financial planning. He blends the nuts and bolts of financial advice with the emotions that drive making them and shares them on his financial therapy podcast.
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