Money mind games: Train your brain for financial success

Bad money decisions plague many people’s lives, and there’s a key culprit behind much of the financial pain.

If you have the frustrating but common ability of always seeming to repel money, here’s something you can blame: your childhood.

Or, more accurately, you can blame your childhood’s impact on your mind, but financial specialists say our brains can be rewired for financial success.

Mindful Finances founder Suzanne Alexander says our beliefs are embedded into our subconscious minds by about age seven, after spending several years absorbing everything around us.

When it comes to finances, these beliefs – whether worrying about money constantly or having healthy financial habits – often continue in adulthood, she says.

Mindful Finances founder Suzanne Alexander says emotion drives financial decisions.

Alexander says people make most financial decisions based on emotion, so a key step to being better financially is understanding your relationship with money, then identifying the beliefs that are serving you and those that are not.

“Otherwise, what can happen is that we keep repeating challenging behaviour, such as spending or hoarding all of our money, she says.

Alexander says people can get their financial brains into better shape by:

• Being clear on what they want to achieve financially.

• Starting to rewire their mind by challenging and changing what they tell themselves.

• Reaching out for help from a financial professional.

• Educating themselves about what is needed to support their money goals.

“There are fabulous resources around money mindset, investing and building wealth including podcasts, books and YouTube videos,” she says. “Find what works for you.”

Behavioural economist Phil Slade says people make decisions based on one of two emotions – fear and opportunity.

“When it’s out of fear, you are not in the right mindset to get ahead,” he says.

Be careful when considering opportunities. “People may think they are getting hold of a good opportunity but in reality it’s just fear of missing out,” Slade says.

Behavioural economist Phil Slade, author of Going Ape S#!t?, says it’s wise to talk to others.

He says familiarity is a good strategy to breed financial success, so read, watch and learn as much as you can.

“Get familiar with the language, and practice with small investments where it doesn’t matter if you are going to lose it.

“Talk to others, not to get confirmation bias but to learn from others who have gone before you.”

Slade says do not try to get rich quick.

“There’s a lot of bad advice out there just set up to sell books,” he says.

“There’s no easy road. Do the maths, weigh up decisions, and never invest in anything that you don’t understand.”