103 – Your Mental Money Rules Can Sabotage your Success – Here’s 3 Steps to Fix Them

October 17, 2023 / John Putnam
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It’s happened to all of us – you found some money – what do you do with it?

Join me as I recount an intriguing experiment I conducted on the streets to explore people’s spending choices when given $100 with no strings attached – the answers may surprise you.

In this episode, I’m delving into a topic rarely discussed but profoundly impactful: Mental Accounting is the behavioral observation of how you assign different rules and limits to money based upon the source of that money.

Inspired by biblical wisdom and offering practical steps, we’ll discuss how to break free from the confusion of mental accounting and embrace a holistic, God-honoring approach to stewardship. Let’s align our financial choices with God’s wisdom for a more abundant and impactful life in His kingdom!

In this episode, John discusses:

  • The hidden world of mental accounting and how people allocate unexpected money
  • Analyzing the impact of cognitive biases on financial decision-making
  • Navigating mental accounting in financial planning
  • Finding financial alignment through faith

Key Takeaways:

  • By understanding and challenging our instinctive responses to money, we can break free from the confines of mental accounting, paving the way for smarter, more abundant financial choices.
  • Instead of compartmentalizing income into separate mental accounts, consolidating and viewing all sources of money as one entity allows for a cohesive financial strategy rooted in biblical wisdom, ensuring faithful stewardship.
  • A solid financial plan, infused with biblical values, involves careful consideration of spending, saving, investing, and seeking wise counsel, and more, empowering individuals to make consistent and aligned choices.
  • Intertwining prayer with financial decisions cultivates alignment with God’s heart, mind and provision, guiding you toward holistic and God-honoring choices, reinforcing the truth that prayer is your most powerful tool in your financial stewardship.

“As we dug into this behavioral financial issue called mental accounting, it’s basically just applying different rules and specifications and limits based on different sources of income and when you do that, it creates a very confusing model rather than keeping everything in a holistic and aligned fashion to make wise and faithful choices that are not only for your best life and your wise and faithful stewardship, but also for honoring God, His kingdom, and His plans.”

Additional resources:


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If you’re interested in growing in your faith, wealth, and life, visit https://changeforyourdollar.com/ for all the tools you need from coaching and speaking to my latest book, He Spends, She Spends!

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John Putnam