Sudden Change in Your Financial Circumstances? Whether Good or Bad, Your Identity Will Lag Your New Reality.

Beware of Self-sabotage

A sudden windfall. An unexpected setback. Your life can change in an instant.

Maybe you just inherited money, sold a business, cashed in stock options, or hit the jackpot. Maybe you lost your job, are getting divorced, or lost a lot of money betting the farm on a “sure thing.” Either way, you’ve had a big change in your financial life, and need to take action.

But your brain hates change, wants to feel safe and to conserve energy.

This means that it will throw up all sorts of unhelpful thoughts about your change in circumstances, whether they’re good OR bad. Your brain has to go on high alert, because change means the unknown, which could be dangerous. Constant vigilance is exhausting. Old mental shortcuts and habits that saved your brain processing effort don’t apply anymore.

It takes time and effort to create new thoughts and habits.

If you have sudden wealth but thought of yourself as struggling financially, or think that all rich people are cruel, the gap between your self-concept and your new reality will take a while to close. In the meantime, your brain will want to prove your old thoughts still true.

Self-sabotage anyone?

Conversely, if you’re used to spending a lot but now can’t support your old lifestyle, it’ll take a minute to become more intentional about where you plunk your cash.

In either case, be kind to yourself around your identity shift.

We don’t go from “I’m a poor person” to “I’m a rich person” or from “I’m a big shot CEO” to “I’m just another guy wearing golf shoes” easily.