A look at the psychological barriers to financial success and how to create a better financial future
When it comes to our relationship with money, we are in the Stone Age. Despite the relentless barrage of information and warnings from financial experts, the average American is in terrible financial shape. It turns out that human beings are just not wired to do the right things around money - such as saving and not overspending. That’s why financial success is so difficult to attain. When it comes to our financial instincts, we are no more evolved than our ancestors who hunted the Woolly Mammoth 400,000 years ago.
Recent findings from the field of financial psychology could help the many Americans who know what they need to do but just can’t seem to make it happen. If you fall into this category, consider Money Mammoth: Evolve Your Money Mindset and Avoid Financial Extinction.
This book looks at financial well-being from a psychological and evolutionary perspective. It reveals the obstacles that prevent people from taking their first critical steps towards financial wellness. It examines how our instincts and beliefs about money influence our financial behaviors. It explores money beliefs, how they develop, and how they drive our money behaviors
As the world’s leading experts in financial psychology, authors Dr. Brad Klontz, Dr. Ed Horwitz, and Dr. Ted Klontz can help you:
- Discover how the experience of your ancestors are impacting your finances
- Understand how your friends, family members, and tribe may be holding you back
- Overcome mental roadblocks to wealth and success
- Harness the power of your emotional brain to transform your relationship with money
- Build confidence in your ability to take control of your financial future
In Money Mammoth, the authors reveal the secrets to harnessing the power of your psychology to reach your financial goals.
Table of Contents
About the Authors xiii
Foreword xvii
Introduction xxi
Part I Your Origins 1
Chapter 1 Your Ancestors 3
The Ancestor Room 4
So What’s in Your Ancestry Room? 6
Why Aren’t You Rich? 7
Death to Savers 8
Notes 10
Chapter 2 Your Parents 11
Your Parents 12
Become Your Own Anthropologist 13
When Money Helps 14
When Money Hurts 15
Financial Enmeshment 15
A Family Story of Financial Destruction 16
Parents Know Best? 19
The 2008 Housing Crisis 19
Notes 21
Chapter 3 Your Children 23
Can Money Make You Insane? 24
Were You a Spoiled Child? 25
The College Admissions Scandal 26
Money Is a Powerful Reinforcer 28
Humans Are Lazy 29
Financial Enabling and Financial Dependence 30
Cutting the Financial Umbilical Cord: Five Steps 31
Raising Financially Healthy Children 33
It’s Not So Simple 34
A Big Heads-Up 35
Quick Start Tips for Healthy Financial Habits 35
Allowances 36
A Family Allowance 38
Talk About Money (But Not Too Much) 38
Notes 40
Chapter 4 Your Mate 43
Genetic Differences? 44
The Giver versus the Saver 44
Interdependence versus Independence 46
Booby Traps 50
Where from Here? 50
How Are You Doing with Money? 51
Finding the Right Kind of Help 52
The Conversation Intervention 52
Setting the Stage 53
Notes 55
Chapter 5 Your Tribe 57
Your Extended Family 57
The Hill 57
What Saves You May Kill You 58
Relative Deprivation 59
How Can We Keep Them Down on the Farm 59
What the Tribe Expects 60
The Modern-Day Tribe - Risk Sharing 61
Feeling at Home in Our Tribes 63
Your Tribes 64
Tribal Influence 65
Tribal Entitlement 66
How Tribes Handle Success 67
Professions as Tribes 69
Jim’s Reality Meets Professional Reality 69
Kill Dr. Phil 70
When Should You Seek a New Tribe? 71
Using Tribal Expectations to Evolve 73
Alex Harnesses His Money Mammoth 74
Notes 75
Part II Your Adaptations 77
Chapter 6 Your Instincts 79
Martha and Her Instincts 84
Tom and His Instincts 84
Overcoming Mindsets 85
Our Money Mindsets 85
Our Financial Instincts Toward Savings 86
Our Anti-Hoarder Bias 87
The Give-Away 87
The Modern Savers 88
The Drive to Share Is Hardwired 89
Our Subconscious Co-Pilot 89
Behavioral Finance 90
Notes 98
Chapter 7 Your Environment 101
Demographic Community 102
School Size and Diversity 103
Community Job Environment 103
Jason’s Story 104
Economic Timing 105
The Story of Rick and Carrie 106
The Belief Stew 108
The Anchor of Your Past 109
Your Chosen Environment 109
Who Takes Care of You? 110
Note 115
Chapter 8 Your Financial Flashpoints 117
Ancestral Flashpoints 117
Family Financial Flashpoints 119
Your Financial Flashpoints 120
Cultural Flashpoints 122
Filling in the Blanks 123
Coronavirus Flashpoint 124
Depression Flashpoint 125
Flashpoint Context and Growth 126
Conclusion 127
Notes 129
Chapter 9 Your Money Scripts® 131
Money Scripts® 132
The Klontz Money Script® Inventory 134
Scoring Procedures 137
Analysis 137
Changing Our Money Scripts® Can Be Tough 139
Rewriting Your Money Scripts® 140
Chapter 10 Your Financial Behaviors 143
Financial Behaviors 143
Financial Behavior Change Strategies 151
Notes 157
Part III Your Evolution 159
Chapter 11 Your Transformation 161
Six-Step Process of Change 161
Change in Action: Results of a Field Trial 163
The Employee Retirement Plan Meeting Dilemma 164
Tell Me a Story. Paint Me a Picture. Show Me! 170
Summary 173
Notes 174
Chapter 12 Your Vision 175
Avoid the “When-Then” Trap 175
Discovering Who You Are 176
Achieving Your Financial Goals 178
What We Found 179
What This Means: Seven Steps to Achieve Your
Financial Goals 179
BONUS Tip: Social Pressure 183
Summary 183
Note 184
Chapter 13 Your Relationship 185
1. Assume 100% Responsibility for Your 50% 185
2. Speak Your Truth 186
3. Listen Now or Pay Later 187
4. Know the Odds 188
5. Love Is Not Enough 189
6. Love Thyself 190
7. No Carry-on Baggage Allowed 191
8. Beware of Invaders 193
9. Children Need Not Apply 194
10. Safety First 194
Exercise: Creating Your Relational Financial Vision 195
The Shared Vision Process 196
Notes 199
Chapter 14 Your Plan 201
Are You Ready to Take Action? (It’s Okay If You’re Not) 202
Money Mammoth Evolutionary Path 203
Start Here: Building Your Mammoth Foundation 203
Survival 204
Hunting and Gathering 221
Adaptation versus Extinction 227
Progress Measurement Tools 230
Notes 231
Chapter 15 Your Success 233
Your Financial Survival Guide 234
Your Evolution 239
Becoming Your Money Mammoth 241
It Is Your Time to Evolve 241
The Blue Pill or the Red Pill 243
Index 247
