Money matters start in the mind

Money matters - whether it's banking, budgeting, debt, investing, saving, or associated risks - start in the mind. What we believe about money, how highly we value it, what we fear, and what expectations we hold about how much of it we'll have or should have are all on the shelf in our 'mental pantry'. To start the year on a strong financial footing, it would be wise to conduct a stock take of your mental pantry, particularly your beliefs that might stymie your financial goals.

How do you conduct this stock take? Here's three methods to try.

1. Write your financial autobiography. Write down all your experiences with money matters as far back as you can remember, including:

• Your earliest memories of money.
• Common sayings heard about money, such as 'Money doesn't grow on trees'.
• Family stories about money like the miserly grandparent, the uncle that went from rags to riches, the cousin that won the lottery and then lost it all.
• Key experiences with money including insurance, houses, investments, financial advisers, accountants, banks, lawyers, credit cards, gambling.
• Key life events such as the purchase of your first home, your first pay cheque, saving a certain amount of money, losing an amount of money, a business going bankrupt.

As you write this autobiography record how you felt about these experiences and any beliefs and fears associated with them. Do you detect any patterns across these experiences? For example, do you tend to be passive about money matters and only take action out of necessity or when faced with deadlines?

2. Examine everyday money encounters. What do you think, feel and do in these situations?

• Feeding a parking metre.
• Paying a highway toll.
• Preparing your tax return.
• Passing buskers on the street.
• Deciding whether to tip a waiter.
• Driving through an exclusive suburb.
• Watching the lottery draw.
• Opening your bills.

Are there any beliefs, fears or actions that get in the way of your financial goals? For example, do you find yourself frequently looking for ways to avoid payments, or begrudging others' success?

3. Draw your money-meanings chart

Write the word 'money' in the centre of a sheet of paper and surround it with all the beliefs, fears, expectations, assumptions, values your associate with this word. Ask yourself questions about money like:

• Do I have any fears about money?
• What are my expectations about money?
• What specific beliefs do I hold about money? Have I adopted some clich�s from childhood, like 'You get what you pay for.'
• What do I believe about related subjects like saving, budgeting, spending, taxes?

Spend some time studying your chart. Are there beliefs, fears, expectations that get in the way of taking charge of your finances? For example, if you believe money matters are too complicated, is that linked to a belief about never being any good at maths? Is that a valid reason for not taking action? How could you work around this?

Money is an emotional issue. Until we identify and discard money beliefs that are passed their use-by date we may find it difficult to reach this year's goals.

( For useful information about home mortgages take a look at http://www.gzmortgage.com.)

Dr Ann Villiers , learning guide, author and consultant, is Australia 's only Mental Nutritionist� specialising in mind and language practices that help people build flexible thinking, confident speaking and quality connections with people. Visit www.mentalnutrition.com.