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Breaking Free from Money Trauma: How Your Past Shapes Your Financial Future

Updated: Mar 11

Have you ever felt fear, guilt, or anxiety around money? Do any of these sound familiar: 1) You avoid checking your bank account when you know bill payments have hit, 2) You hesitate to spend money even when you can afford it, or 3) You can't break out of unhealthy financial patterns? If any of these sound familiar, you may be dealing with money trauma; which are deep-seated financial fears rooted in your past experiences.


Anxiety from managing finances

See, money trauma affects more than just your wallet; it actually shapes your mindset, decision-making, and overall financial health.


What you should know is that recognizing your emotional blocks is the first step toward financial freedom and abundance.


In this post, we'll explore how money trauma develops, how it impacts your finances, and-most importantly-how to break free from it.


Signs You Might Have Money Trauma:


Believe it or not, money trauma can manifest in many ways. Here are a few common signs:


  • Fear of Spending: You struggle to enjoy your money, even when it's for a necessary expense.

  • Guilt Around Money: You feel underserving of financial success or wealth.

  • Avoidance of Finances: You ignore bills, avoid checking your balance, or procrastinate financial planning.

  • Scarcity Mindset: You constantly worry about running out of money, even when you have enough

  • Impulse Buying & Overspending: You use shopping as a coping mechanism for stress or insecurity.


If any of these resonate with you, your relationship with money may be shaped by past financial stress or emotional experiences.


How Money Trauma Develops

Money trauma often begins in childhood or past financial struggles. Here's how it can form:

  • Family Influences: If you grew up watching your parents struggle financially, you may have absorbed anxieties around money.

  • Past Debt or Financial Hardships: If you've experienced bankruptcy, overwhelming debt, or job loss, those fears can stick with you even after you recover.

  • Scarcity Experiences: If you've lived paycheck to paycheck or faced financial instability, your brain may have developed survival-based money habits that are hard to shake.


The Bottom line....

Understanding where your money trauma comes from can help you rewrite your financial story and develop a healthier relationship with money.

For a free E-book on Money Trauma, click the link below:


Steps to Overcome Money Trauma

Listen, our brains play a huge role in how we handle money and financial trauma can trigger the "fight-or-flight response"; this makes it difficult to make logical money decisions.


The good news is that our brains are capable of change and through committed work and intentional effort with actions, we have the ability to rewire our thoughts and behaviors. Here's how to start:


A woman creating sticky note reminders

  1. Identify Limiting Beliefs

    1. Your beliefs about money shape your financial reality. Ask yourself:

      1. What money messaged did I learn growing up?

      2. Do I believe I'm capable of financial success?

      3. What fears do I have around money?


        Recognizing negative money beliefs is the first step to replacing them with empowering ones.


  2. Reframe Financial Experiences

    1. Instead of seeing past financial mistakes as failures, view them as learning experiences.

      1. Now friend, this is NOT a pass to keep making the same financial mistakes. That means that if/when you make a mistake, hold yourself accountable, learn the lesson and take steps to not make it again mkay? Alright let's continue.....


  3. Develop Healthier Financial Habits

    1. Create a money management routine (budgeting, saving, and tracking expenses).

    2. Practice gratitude- focus on financial progress instead of lack.

    3. Educate yourself on money matters (investing, debt repayment, wealth-building).


    Let'e be honest. You can't just think yourself into a better financial situation. No matter how hard to try to. But if/when you decide to be dedicated in taking small and consistent financial actions, you will become more empowered and confident in your decision making and see progress.


Final Thoughts: Your Journey to Financial Freedom

Money trauma doesn't have to control your future. By identifying past influences, shifting your mindset, and taking practical steps, you can rewrite your financial story and build a healthy, confident relationship with money.


Ready to take the first step? Start by downloading our free Money Trauma E-book from the link below:



Let's start the conversation now. What's one limiting belief about money you're working to overcome? Drop a comment below!

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