Have you ever wondered why smart, capable people make financial decisions that seem to go against their best interests? The answer, according to financial psychologist and author Dr. Brad Klontz, lies not in our intelligence or income, but in our mindset.
In a recent episode of the Gino & Julia Show, we sat down with Dr. Klontz, author of the book Start Thinking Rich, to explore the hidden psychological drivers behind our financial behaviors. Our conversation revealed a powerful truth: transforming your financial life begins by first transforming your mind.
The Power of Mindset: Broke is Temporary, Poor is Forever
Dr. Klontz makes a critical distinction that changes the entire conversation around money. He states:
“Broke is you have no money. But if you’re poor and you have a poor mindset, you’re going to be broke forever.”
This reframes the challenge from a simple lack of funds to a deep-seated mental state. A “poor mindset” is one that often blames external forces—the “rich man,” the government, or circumstances—for a lack of financial success. Dr. Klontz passionately argued that while people with this mindset sit on the porch complaining, those with a “rich mindset” are at work, investing, and taking ownership of their future. A person can have no money and still possess a rich mindset, and in all likelihood, their situation is only temporary.
Unearthing Your “Money Scripts”
The reason many of us have a particular mindset is often rooted in what Dr. Klontz calls “money scripts.” These are subconscious beliefs about money that we learn from our parents, grandparents, culture, and life experiences.
For example, Gino shared how his upbringing as the son of immigrants instilled a deep-seated fear of running out of money, leading to a “scarcity mindset.” Julia, with a different background, had a contrasting relationship with money, which initially led to conflict in their marriage.
Understanding these scripts is the first step toward changing them. When we see our partner’s (or our own) financial behavior not as a personal attack but as a result of a deeply ingrained belief, we can approach it with empathy and begin to create a new, healthier narrative.
The Blame Game: Taking Back Control
Another key concept Dr. Klontz discussed is locus of control. This is the degree to which we believe we can influence the outcomes of our lives.
- External Locus of Control: Blaming external forces like the government, the economy, or other people for your problems.
- Internal Locus of Control: Believing that your actions, attitudes, and decisions are the primary drivers of your life’s outcomes.
Dr. Klontz argues that while it feels good in the moment to blame others, it leaves you powerless. All of the research, including his own, shows that people who attribute their life’s outcomes to themselves are more successful, have higher net worth, and even have happier relationships. This internal locus of control is the wellspring of true power and transformation.
The Herd Mentality and Your Brain
Our financial decisions are often not based on logic, but on emotion and a powerful evolutionary instinct: to run with the herd. Our ancestors who didn’t follow the group were likely picked off by predators, so this behavior is baked into our DNA.
Dr. Klontz used the example of the stock market—when everyone is buying, we feel a powerful pull to buy too. He also shared a personal story about wanting a Sprinter van because everyone else in his Boulder community had one, without even realizing it. This shows that even the experts are susceptible to this subconscious urge to conform. Financial success often requires us to consciously go against the herd and make logical, values-based decisions.
Two Harsh Truths of Financial Transformation
Dr. Klontz’s book doesn’t shy away from uncomfortable truths. He shared two that resonated deeply:
- “If you want to get rich, you gotta get rid of your poor friends.” Dr. Klontz clarifies that “poor friends” aren’t about income level; they are about mindset. If you want to achieve a happier marriage, you shouldn’t hang out with people who constantly complain about their spouses. The same goes for money. Surround yourself with people who are on a similar journey of financial growth.
- “It’s not your fault if you were born poor, but it’s your fault if you die poor.” This is a powerful, uncompromising statement that removes victimhood from the equation and places the responsibility for your future squarely on your own shoulders. It is a harsh truth, but for many, it is the motivation needed to change.
The Path Forward
Your relationship with money is a symptom of deeper beliefs and scripts. By doing the “hard work” of introspection—unearthing your money scripts, taking personal responsibility, and challenging your emotional biases—you can begin to transform your financial life. Money, in the end, isn’t the goal; it’s a tool. And with a rich mindset, it becomes a tool you can use to build the life you truly want.
Ready to start thinking rich and take control of your financial future? Visit our site at https://barbaro360.com/ to learn more about the work we do.
