Praise for LOADED "LOADED is that rare resource which somehow captures both theoretical and practical wisdom about money, personality, and life. Your views and actions with money will be much improved after reading the wonderful advice in LOADED." James Grubman, PhD, author of Strangers in Paradise: How Families Adapt to Wealth Across Generations and co-author of Cross Cultures: How Global Families Negotiate Change Across Generations YOUR MOST VALUABLE ASSET...IS YOU. LOADED WILL TEACH YOU HOW TO MAKE THE MOST OF IT. Based on decades of research and years of hands-on experience with people from all walks of life, LOADED is a must-read for anyone who finds themselves caught between the desire to thrive financially and the complex emotions and conflicting priorities that money so often brings to our lives. Inside, you will learn to: *Check your stories. Pinpoint and change beliefs that hold you back. *Choose your strategies. Learn how to align your money with your needs. *Cultivate your value. Put your unique resources to use and earn more.
Deeply researched, yet written in an approachable, conversational tone, LOADED offers insight into how your personal experiences have shaped your financial attitudes, and how you can build a healthier relationship with money.
SARAH NEWCOMB, PhD, is a behavioral economist at Morningstar and HelloWallet (a personal financial wellness company owned by Morningstar). An interdisciplinary scholar, Sarah is well versed in consumer psychology, economic decision-making, personal money management, and cognitive and social psychology.
ACKNOWLEDGMENTS xi Introduction 1 Chapter 1: When It Comes to Money, We ve All Got Issues 7 Note 9 Chapter 2: Money Messages 11 We Don t Talk about Money 11 We Talk about Money Constantly 13 From Freud to Frodo: The Stories We Tell Each Other 15 The Stories We Tell Ourselves 19 Stories Can Help or Hurt 24 Heuristics and Biases Shape Our Stories 26 Identifying Core Beliefs 27 Challenging Core Beliefs 28 Using Science to Our Advantage 32 Notes 32 Chapter 3: Poverty, Privilege, and Prejudice: A Crash Course in the Science of Money Psychology 33 Money and Social Psychology: How Poverty, Privilege, and Comparisons Affect Our Minds and Behavior 35 Poverty: Why Not Having Enough Is a Major Drag 35 Privilege: Why Having an Advantage Is Great ... and Not So Great 46 Prejudice We ve All Got It 54 Movin on Up 59 Money and Cognitive Psychology: How Specific Thinking Patterns Affect Financial Decisions 63 Why Retail Therapy Feels Good: Identity and Ego Depletion 64 Time and Money: Why We Always Want It NOW 70 Thinking in Circles 81 Finances and Emotions 83 Financial Knowledge 87 Making Change 90 Notes 94 Chapter 4: The LOADED Budget: Creating a Human-Centered Money Management Plan 99 What s Wrong with Your Budget? 100 Where Does Your Money Come from? 102 Assets and Resources 108 Where Does Your Money Go? 114 Rules of Thumb for Creative Resource Management 140 The Asset Test 141 Putting It in All Together: Your Personal Economy 149 Enjoying a Loaded Life: Living in Harmony with Your Money and Your Values 161 Notes 164 APPENDIX A: SELFAe*ASSESSMENTS 167 Write Your Personal Financial Narrative 168 Define Your Core Beliefs 169 Financial Management Behavior Scale 170 Emotions and Money (from HelloWallet s 2014 Pilot Study) 171 Mental Imagery 172 Behavior Identification Form 173 How Impulsive Are You? 174 Big Five Financial Literacy Questions 175 APPENDIX B: INTERVENTIONS AND EXERCISES 177 Change the Narrative 178 Challenging Core Beliefs: Find a Counterexample 179 Age Progression 180 Future Visualization Exercises 181 Exercises to Combat MoneyThink 182 Affirm Core Values 183 Cash Flow Worksheet 184 Resources Worksheet 185 Expenses and Needs Worksheet 186 Your Personal Economy 187 Just-In-Time Financial Education Resources 188 ABOUT THE AUTHOR 189 INDEX 191