3 Keys to Financial Peace & Pro$perity

By Andrea Flanders

Most of us understandably feel anxious or afraid in the current turbulent economic times. Some have been hit hard with loss of income, homes, or are ill and without healthcare. But long before the crisis hit, many Americans were living from paycheck to paycheck or on borrowed money. As if living in a dream-world, many pushed away the harsh reality that they were utterly unprepared for future needs.

Now we are becoming more careful about our spending. From the abundance of articles in newspapers, on internet news sites, and television on how people can conserve their spending, it appears to be "in" to be a frugal and savvy shopper. But has anything fundamentally changed? After this recession lifts, will most people go back to previous ways? It might make a difference if more of us would embrace values different from our present consumer-oriented focus, but this remains to be seen. Judging from the past, there is a possibility that few will change greatly, instead attributing their losses to external circumstances much more than their attitudes and behaviors. A large percentage of Americans who have filed personal bankruptcy once, have filed a second time (before the current recession). The majority of those receiving windfall monies from lotteries, settlements, or inheritance spend through their money and return to their former financial circumstances within a relatively short period of time.

To make lasting change we must look inside ourselves, challenge faulty beliefs, learn new behaviors, and how to implement those behaviors. Here are three key ways to start that work!

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The first key is Uncover your "money story." Your "core money story" arises from your early experiences and feelings about money in your family. From this, each of us creates a central guiding belief system which predominantly operates on an unconscious level. These beliefs can be positive, such as "Work hard and you will succeed," or negative as in "People like us never get a break." Behaviors stemming from unconscious beliefs are often automatic and inflexible. Examining and correcting our belief system will help change our behaviors. Our beliefs and attitudes are also influenced by both direct, and indirect, messages from friends, culture and social class.

I'll use the example of Nancy (not her real name) to illustrate a core story:

Nancy grew up in a family where money was tight. Though they always had a roof over their heads and food on the table, Nancy and her siblings went without many things they wanted. Nancy envied the clothes, toys, and activities her classmates were able to have. She felt resentful that her mother would impulsively buy luxuries for herself, but would deny many of her children's requests. So when she grew up, she wasn't going to "deny" herself something she thought she deserved! If she had money in her checking account or more room on her credit cards, it was there to be used as she wished. Like her parents, Nancy didn't plan or budget. Her sharply mounting debt was causing excruciating anxiety and feelings of low self-worth.

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