Talking about money is uncomfortable for most of us. 

As young adults, we were taught to never talk about religion, politics or money. 

Money is much more than dollars and cents. It is very emotional. 

Some people live way above their means. Others completely leave the finances to their partner. Many people cast themselves as fools or martyrs.

There are three types of people who work with money. 

There are people who can help you make money. There are people who can help you save money. And there are people who can help you understand how you're handling your money.

To begin building your new relationship with money, it’s important to start with a clean slate. 

To accomplish this, you will need to clean up your financial house and tidy up any loose ends. This can be a painful process depending upon the degree of financial chaos in your life. 

It is essential to clear out the old energy to make room for the new. This process will help you feel lighter, more energized and ready to lay a new foundation for your future relationship with money.

Finding how someone handles their money is usually attached to a money type. 

A money type is an idea that certain spending habits tend to happen together in the same person. We learn our money habits from childhood, from a parent or another person in our life that took care of us financially. 

When people look back on their earliest memories of money, they can shed light on habits that often lurked just off the radar. 

There are eight money types:

  • The Innocent  is very trusting, happy-go-lucky and financially dependent. 
  • The Victim  often feels powerless and lives in the past.
  • The Warrior  is confident and powerful. 
  • The Martyr  neglects their own needs and is often controlling. 
  • The Fool  gambles and doesn’t care about money. Sometimes they’re overly generous. 
  • The Creator  has a love-hate relationship with money and often struggles financially.
  • The Tyrant  can be controlling and manipulative. 
  • The Magician  is the ideal money type. The Magician is loving, wise, generous, trusting, powerful and financially stable. 

There is a little bit of each money type in everyone. Becoming more aware of money habits is important work to create a new mindset around money. 

When most people think about getting their finances in order, they start with spending plans and/or budgets — which are very useful — but they often stop short of the thing that provides the best foundation for fiscal responsibility: Introspection.

Introspection is important because money can mean different things to different people.

Money could have been the way some got chores done as children or was the initiative for doing well in school. 

Possibly family members didn’t trust banks and hid cash under the mattress. Maybe spending sprees were frequent and splurging was a common occurrence. 

Money is emotional! 

Money mindsets are formed by “a-ha” moments or patterns of behavior from important people in someone’s life. 

For most people, using the same money patterns they used for their entire lives will place them on a treadmill at best — and a spiral into bankruptcy at worst. 

Many people create extensive financial plans and continue to make the same mistakes. By understanding subconscious feelings and beliefs about money, it’s possible to become more conscious of money habits and become better prepared to change old habits when they occur. 

To change where you are going, first you must understand where you came from. 

A new, improved money mindset and habits can change relationships, set better examples and get many out of debt.  

Judy Heft is the CEO/founder of Judith Heft & Associates, a financial and lifestyle concierge celebrating 25 years in business helping people stay financially organized. She is a certified money coach and the author of “How to Be Smart, Successful and Organized With Your Money.” For more information, visit www.judithheft.com.