Optimal Finance Daily - Financial Independence and Money Advice 3108: How to Overcome Your Money Mindset Issues If You Grew Up Poor by Emily Guy Birken with PT Money
Apr 14, 2025
Explore how childhood experiences of poverty shape lasting money mindsets. Learn about the significance of self-awareness in transforming limiting beliefs and enhancing financial outcomes. Discover the concept of 'locus of control' and how it influences your financial decisions. Gain insights on overcoming feelings of abandonment and redefining self-worth, emphasizing that true value lies in personal integrity rather than financial success. It’s all about taking charge and making empowered choices!
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Socioeconomic Impact on Control
- Growing up poor often decreases your sense of control during uncertainty, leading to reactive money habits.
- Wealthier upbringings typically result in stronger feelings of control and proactive financial choices.
Locus of Control Shapes Finances
- People with an external locus of control think outcomes are out of their hands and may carry more debt.
- Those with an internal locus feel responsible for their outcomes and proactively manage finances.
Protective Yet Limiting Behaviors
- Growing up poor makes reactive behaviors like choosing small immediate rewards protective, but financially limiting.
- This impulsivity contributes to debt and challenges delaying gratification, key for investing.