Ep.125 - BUILDING A FINANCIALLY EMPOWERED MINDSET
Hello and welcome to another empowering episode of the Merging Life and Money Show. I am your host, Marie Jo Caesar, and I'm always thrilled to have you tuning in. Thank you for inviting me into your day, wherever you are you are listening. I so enjoy being here discussing what I believe are some of the most critical elements in our lives, money and how it intertwines with our everyday life.
In my previous episodes, I dove into topics like budgeting fundamentals, smart investing, and financial planning for your future. And if this is your first time tuning in, I encourage you to catch up on what you've missed. So today I'll be delving into a subject that despite its tendency to be disregarded holds a huge potential to change your financial circumstances.
I'm talking about building a financially empowered mindset. And yes, that's right. Not just financial plans or budgets, but the actual mindset that powers all our financial decisions. This subject is close to my heart because understanding money is not just about numbers. It's about cultivating an empowering attitude toward your finances.
It's about shifting perspective from fear or ignorance into knowledge and power. Imagine for a moment what it would feel like, to view money not as a source of stress or worry, but as a tool for creating the life you truly want, a life where you are not just surviving paycheck to paycheck, but you are thriving and flourishing. That's the power of a financially empowered mindset. Again, it's not just about the numbers in your bank account. It's about your approach to money, your beliefs about wealth, and ultimately how you use money to create a. fulfilling, purposeful life.
In the journey of life, your relationship with money can sometimes seem like a roller coaster ride with its highs and lows, but trust me, once you're equipped with the right mindset, you're able to face these financial challenges more effectively and even turn them into opportunities. So stay tuned, dear listeners, as today I unlock the secrets to building and maintaining this powerful mindset.
Welcome to the Merging Life and Money Show. So what exactly? What am I hoping to achieve with today's episode? The aim is simple, yet profound. I want to educate; I want to inspire and empower you to take control of your financial lives by transforming the way you think about money. The purpose of this episode is to shine a light on often overlooked aspect of financial health, your mindset.
You could have all the money in the world, but if you don't have a healthy mindset around it, you'll never truly feel secure or empowered. I'm going to demystify the concept of a financially empowered mindset, break it down into actionable steps, and guide you on how to adopt it in your everyday life.
Whether you are just starting out on your financial journey or you are a seasoned pro looking to level up, this episode has something for you. My goal is to provide you with the tools and inspiration you need to shift from a place of financial stress or complacency to a place of financial confidence and empowerment.
I want to help you break free from the shackles of financial anxiety. I want to help you cultivate a positive relationship with money. And I want to help you harness its power to create a fulfilling life of financial mindsets. Remember though, this is not a passive process. Therefore, I encourage you to actively engage, introspect, and apply what you are learning because it's time for you to take the driver's seat on your financial journey.
Now that I've set the stage for today's discussion, let's explore the first point. of today's episode, which is understanding your current financial mindset. After all, one of the ancient pearls of wisdom I strongly subscribe to is know thyself. Let's begin by exploring your financial mindset, the deeply ingrained attitudes and beliefs you hold about money.
So what exactly do I mean by financial mindset? Your financial mindset is essentially your attitude toward money, how you think about it, how you relate to it, and how you use it. Basically, it is the sum total of all your beliefs, habits, and emotions around money. And it influences nearly every financial decision you make, whether it's how you earn, spend, save, or invest money.
But where does this mindset come from? It's rooted in your childhood experiences and upbringing. Yes. The way you think about money as adults often has a lot to do with your early interactions and observations. Did your parents struggle financially or were they comfortable? Were money matters discussed openly at home or were they a source of stress and conflict?
Did your culture or society promote a scarcity mindset, making you believe that money is hard to come by, or an abundance mindset, assuring, that, there's enough for everyone? These experiences and observations form the basis of your beliefs about money. If you grew up witnessing financial instability, you might grow up believing that money is something elusive, something hard to earn, and maybe something easy to lose. Conversely, if you saw that money was handled wisely and discussed openly, you might develop a more positive and empowered view of money. Now, it is important to remember that these early beliefs aren't necessarily the truth about money, okay? They are just interpretations based on your experiences.
The good news is that no matter how deeply ingrained these beliefs are, they can be examined, they can be challenged, and they can be changed. Which is what I'm going to explore next. I'll explain what a financial mindset is, and where it originates. Let's discuss how different types of financial mindsets can impact your financial decisions and your overall life. So to simplify, I'll primarily focus on two distinct mindsets, the scarcity mindset, and the abundance mindset. So if you are operating with a scarcity mindset, you believe that there is never enough money. Okay. This mindset sees the world in terms of lack and leads you to believe that there is not enough to go around. As a result, you have to hoard what you have and you find yourself constantly worried about running out. This mindset can lead to fear-based decisions such as staying in a job you dislike simply for the paycheck or avoiding investing out of fear of losing money. It might also cause you to undervalue your worth. Accepting less than you deserve in terms of salary or charging less for your services than they are worth. In contrast, an abundance mindset believes that there is always enough money. There is plenty to go around and more can always be made. So this abundance mindset can lead to more empowered financial decisions.
You are more likely to invest in yourself. You are more likely to take calculated financial risks and believe in your worth, demanding appropriate compensation for your work. So you are also more likely to view financial setbacks as temporary, knowing that you have the ability to earn back any lost money.
But these mindsets don't just affect your financial decisions, they also have a profound impact on your overall life. A scarcity mindset can keep you trapped in fear and worry, robbing you of joy and fulfillment. On the other hand, an abundance mindset allows you to experience life fully knowing that you have the power to create wealth and financial stability.
So let me add that it's important to know that these are not just static categories that you permanently fall into. There are states of mind that you can shift and that's where the true power lies. So in the next segment, I will discuss exactly how you can make this shift toward a financially empowered mindset.
But before I do that, let's first take a moment to identify where you currently stand and do a little introspection. So I invite you to participate in a self-assessment activity to identify your current financial mindset. So this is a crucial step in understanding your starting point. But don't worry, okay, there are no right or wrong answers.
The goal is honest self-reflection. First, find a quiet place where you won't be disturbed. Then take a deep breath and center yourself. Have a piece of paper and a pen handy or a device where you can jot down your thoughts. And I'm going to ask you a series of questions. I want you to listen to each of those questions, pause the podcast, take a moment to reflect on it, and write down the responses.
ready? Let's begin. How do you feel when you think about money? Do you feel stressed? anxious or fearful? Or do you feel confident, optimistic, and at ease? My second question is, how do you handle financial setbacks? Do you see them as insurmountable obstacles or as temporary hurdles that you have the ability to overcome?
Third question, how do you view your ability to earn money? Do you believe that there's a limit to how much you can earn? Or do you believe that you have the potential to increase your earnings? My fourth question would be, how do you approach spending? Are you afraid to spend money even on things that are important to you? Or do you spend confidently? knowing that you can make more. Fifth question. How do you feel about investing? Does the thought of investing scare you because you might lose money, or do you see it as a way to grow your wealth? So once you've written down your answers, take a moment to review them.
Okay. Do your responses. lean more toward scarcity, a scarcity mindset, or an abundance mindset. Remember, this isn't about judging yourself, but understanding where you are starting from. So remember that awareness is the first step toward change. And by completing this activity, you've already taken that first step.
Now, having taken a moment to understand your current financial mindset. You've already begun the journey to financial empowerment. It is an important and courageous first step, and I applaud you for taking it. I will say that you are now armed with this self-awareness. Therefore, we can move to the next important discussion. So in the second point of today's episode, I'm going to share with you the ways to develop a financially empowered mindset. This is where the real transformation begins, where you start to reshape old beliefs and create new, empowering money narratives for yourself. So as we transition into the next segment, I will first define what a financially empowered mindset entails. The financially empowered mindset is more than just a positive outlook toward money. Okay. It's a comprehensive and profound understanding of your financial worth. Your capabilities and your potential.
It's a belief system that fuels confident, informed, and responsible financial decisions. So here are some of the key characteristics of a financially empowered mindset. One is confidence. You are confident in your ability to earn money, save, invest, and manage your finances effectively.
Two, resilience. You view financial setbacks as temporary hurdles rather than permanent roadblocks.
You believe in your capacity to bounce back and recover.
Three, proactivity. You don't wait for money issues to solve them. Instead, you take proactive steps to improve your financial situation.
Four, growth orientation. You are open to learning more about money management and are committed to continuously improving your financial literacy.
Five, value alignment, your financial decisions, aligned with your personal values and life goals. Money is seen as a tool to help you live the life you desire. not as the ultimate goal.
Okay. The benefits of adopting such a mindset are manifold. First, it allows you to navigate your financial journey with less stress and more confidence. It encourages wise, future-oriented, decision-making. Okay. It fuels financial independence. and gives you a sense of control over your financial future.
Plus, it fosters resilience, helping you weather financial storms with a calm, strategic approach rather than panic or despair. In essence, a financially empowered mindset not only transforms your relationship with money but also enhances your overall quality of life. It allows you to see beyond the constraints of your current financial situation and envision a future where money serves your life goals rather than dictating them.
But how do we cultivate this mindset? This is a transformative process that requires self-reflection, learning, and intentional actions. But remember, change does not happen overnight. It is a journey and I'm here to guide you through it step by step. So let's get started.
First, identify and challenge negative money beliefs. Start by recognizing the negative beliefs you hold about money. Perhaps you think that money is the root of all evil or that rich people are greedy or maybe that money is hard to earn. Once you have identified these beliefs, challenge them. Okay. Are they really true? Or are they simply based on past experiences or societal conditioning?
Remember, these beliefs are not facts. They can be changed.
Two learn financial literacy. Knowledge is power, spend time learning about money management. about investing and financial planning, and overall, implement what you learn.
There are plenty of resources available online, in libraries, or through financial education programs. The more you understand about money, the more confident and empowered you will feel in making financial decisions.
Three, set clear financial goals. What do you want your financial future to look like? Do you want to be debt-free? Do you aspire to own a home, start a business, or retire comfortably? So set clear, specific, and realistic financial goals. Write them down and make a plan to achieve them. Remember, these goals should align with your life values. And your aspirations.
Four, develop healthy money habits cultivate habits that support your financial health, like budgeting, saving, investing, and regular financial check-ins. Reward yourself for small wins along the way to keep your motivation high.
Five. Cultivate an abundance mindset. Train your mind to see abundance rather than scarcity. Celebrate your financial wins, as I said, no matter how small. Be grateful for what you have while striving for what you want.
Believe in your ability to create wealth.
Six, seek professional guidance. Okay, don't be afraid to seek help from a financial professional, or a financial coach. They can provide personalized guidance based on your specific circumstances and goals. Remember, this is not a one-size-fits-all process. It's highly personal and should be tailored to your unique situation and goals. However, by following these steps, you will be well on your way to cultivating a financially empowered mindset. Now, I'll be sharing some practical tips and strategies that you can start implementing today because developing a financially empowered mindset is a lifelong journey, but it's one you don't have to embark on alone.
There are a multitude of resources available to help you cultivate this mindset from books to podcasts like this one, to courses and mentors. So here are some practical tips and resources to assist you on your journey. Books, okay. Books can be an excellent starting point. Some of my favorites include Rich Dad, Poor Dad by Robert Kiyosaki for understanding the fundamentals of financial education.
Another one that I really like is Your Money or Your Life by Vicky Robin. And Joe Dominguez for redefining your relationship with money. And the third one that I like is Think and Grow Rich by Napoleon Hill for insight into the power of mindset. There are also podcasts. If you prefer audio content, there are several excellent podcasts that cover money matters.
Okay. There is the Ramsey show. It's not for everyone, but it's a great resource for practical financial advice while “ChooseFI” offers insight into financial independence, like retire early, the fire movement. And of course, there's also the merging life and money show, where I delve into the intersection of personal finance and life philosophy.
Three, there are courses online platforms like Coursera and Udemy, and Khan Academy. They offer a variety of courses on personal finance, investing, and financial planning. Some are free, while others require a small investment. Four, mentors and coaches. Okay. Consider seeking a mentor or hiring a financial coach.
They can provide personalized advice and guidance. They can help you stay accountable for your financial goals and offer encouragement throughout your journey. There are also, I would say, my number five, there are also apps and tools. and there are a lot of them, okay, to assist with budgeting, tracking expenses, and investing.
And I could call a few, like Mint, you need a budget. And personal capital is another one. These are just a few examples, there are a lot of them out here. Six. Your community do not underestimate the power of community. So join local finance groups or online forums like Reddit's personal Finance community to learn from others' experiences, ask questions, and find support.
Remember, the journey to financial empowerment is not a race. It's a personal journey that takes time, so take it one step at a time. Stay patient with yourself and celebrate your progress along the way. And remember, I am here to guide you throughout this journey, so do not hesitate to reach out to me.
With that, let's move to the third and final point of today's episode. Implementing and maintaining your financially empowered mindset. So let's put these insights that I talked about into practice and more importantly, learn how to maintain this new mindset for the long haul. So as we venture into the process of implementing and maintaining your financially empowered mindset, remember, the goal is to make this mindset an integral part of your daily life and long-term financial decisions.
So here are some strategies to help you do just that. The first one is consistent action.
The first step in implementation is taking consistent action with your new mindset. This could mean sticking to your budget, consistently saving a portion of your income, or regularly educating yourself about investments.
Remember, small, consistent actions lead to big results over time.
Two, mindful spending. Apply your empowered mindset to everyday spending. So before making a purchase, ask yourself if it aligns with your financial goals and your values. This simple act of mindfulness can prevent impulse buying and keep your finances on track.
Three, future-orientated decisions. When faced with significant financial decisions, such as taking on a mortgage or investing in a business, utilize your empowered mindset. Consider the long-term impact of these decisions, not just the immediate outcomes.
Four, celebrate progress, as I said, remember to celebrate your financial wins, no matter how small. This could be anything from sticking to your budget for the month to reaching a saving goal to making your first investment.
So celebrating progress reinforces your new mindset and motivates you to keep going. As for maintaining your new mindset, here are a few tips.
Regular check-ins. Regularly assess your financial mindset. Are you reverting to old beliefs or maintaining your newly empowered mindset? Regular check-ins will keep you aware and help you course correct if needed.
Two, continuous learning. Keep learning about personal finance and money management. Your financial education is never complete. The more knowledge you gain, the more empowered you will become. So seek support.
Number three do not hesitate to seek support when needed, whether from a financial coach, a trusted mentor, or a supportive community. They can provide guidance, encouragement, and accountability.
Four, practice resilience. There will be financial setbacks, without a doubt. Instead of seeing them as failures, view them as opportunities to apply your empowered mindset and bounce back stronger. Remember, building a financially empowered mindset is a lifelong journey, not a destination.
It requires patience, persistence, and consistency. Patience, persistence, and consistency. But the rewards... All right, financial freedom, peace of mind, and the ability to use money as a tool to live your best life are absolutely worth it. So as you embark on this journey toward a financially empowered mindset, it is crucial to understand that like any significant change, it will not always be smooth sailing.
You are likely to encounter obstacles and setbacks. However, don't let this deter you, Challenges are opportunities for growth, and overcoming them strengthens your resolve and commitment to your new mindset. Now, let's discuss some common obstacles and strategies to navigate them. reverting to old habits, right?
One of the most common obstacles is slipping back. into old unproductive financial habits. So as they say, falling off the wagon. This is entirely normal. Changes take time and consistency. So to overcome this, be patient with yourself and remember why you embarked on this journey. Remember that each day is a new opportunity to choose your financially empowered mindset over old habits.
Two-negative influences. Another common challenge is dealing with negative influences, which can come from the media, your peers, or even family members. Okay, so it is essential to stay firm in your commitment and surround yourself with positive and supportive influences.
So seek out communities. Seek books and podcasts that reinforce your new mindset.
Three financial setbacks, unexpected expenses or financial emergencies can feel like a massive blow to your new mindset. However, remember the resilience aspect of a financially empowered mindset. Look at setbacks as temporary hurdles, rather than permanent failures.
Use them as learning experiences to plan better for the future.
Four, Impatience. Real change takes time, and it can be frustrating if you don't see immediate results. But financial empowerment is a long-term journey. Celebrate small wins and progress, no matter how insignificant they may seem. They are proof that you are moving in the right direction.
Five, information overload. There's so much information available. It's easy to feel overwhelmed or confused, right? But remember, you don't have to know everything at once. So start with the basics again and gradually expand your knowledge. Do not hesitate to seek help from professionals as I mentioned before, or mentors if you are unsure about something.
In conclusion, while these obstacles can be challenging, they are also part of the journey toward a financially empowered mindset. So embrace these challenges, learn from them, and keep moving forward. You got this.
Before wrapping up today's episode, I would like to share two inspiring stories of individuals who successfully navigated their financial journey and cultivated a financially empowered mindset.
I'll start with this chap called Miguel. Miguel had a well-paying job but still felt that he was living from paycheck to paycheck due to poor money habits. So after a major financial setback, he decided to change his relationship with money. So Miguel began by identifying his negative money beliefs and replacing them with positive ones.
He set clear financial goals. learn to budget and started saving and investing. And he did all this with the help of a financial coach. It was a slow and sometimes challenging process, but Miguel persevered. And today he's not just financially stable. He's financially free. He's now using his knowledge to help others on their financial journeys, further exemplifying the power of a financially empowered mindset. And there's Crystal. Crystal grew up in a low-income family, where money was often a source of stress. Despite these circumstances, she was determined to create a different financial future for herself. So she started by educating herself about personal finance and investing.
She cultivated an abundant mindset, focused on her financial goals, and consistently saved a portion of her income no matter how small. Over time, Crystal was able to pay off. She was able to build an emergency fund and even start investing. Today, Crystal is a successful entrepreneur and she is really living proof that a financially empowered mindset can transform your life.
So these stories are testaments to the transformative power of a financially empowered mindset. Remember no matter where you are starting from financial empowerment is within your reach. It's not about the amount of money you have. It's about your mindset towards it. And as we draw close to the end of this transformative episode, let me summarize what I talked about today.
I began by understanding what a financial mindset is and recognizing your current financial mindset. I discussed how different types of mindsets, namely scarcity versus abundance impact our financial decisions and overall life. I then walked through a self-assessment activity to identify your current mindset.
In the second point, I explored how to develop a financially empowered mindset by changing negative money beliefs. learning financial literacy, setting financial goals, and providing some helpful resources to assist you along the way. Finally, I explored practical strategies for implementing and maintaining this mindset in your daily life and long-term financial decisions. I also talked about overcoming common obstacles and setbacks that you might face on this journey. And I wrapped up with inspiring stories of individuals who have successfully built and maintained a financially empowered mindset. Now, I invite you dear listeners to commit to building your financially empowered mindset to kick-start this process. I encourage you to take some small steps today toward developing this mindset. It could be identifying and replacing a negative money belief, or it could be learning a new financial concept. No step is too small, and every step brings you closer to a life of financial empowerment.
So thank you. Thank you for joining me on this journey. I look forward to continuing to guide and support you as you build your financially empowered mindset. Remember, your financial future is in your hands. You have the power to reshape it. And that's all I have for you today. And as I like to end my show with a few wise words, and here they are.
So the first step to changing your financial reality is understanding your financial mindset. Now I want to express my deepest gratitude to you, my dear listeners, your time, your commitment, and your desire to transform your financial lives are what make this podcast possible. So if you found value in today's episode, I kindly ask that you subscribe to the Merging Life and Money podcast, leave a review, and share the podcast with others who could benefit from its content.
I would ask, also ask you to listen to it again and do that little assessment. Okay? And remember, your support helps me reach more individuals like you who are on their journey toward financial empowerment. So thank you once again for tuning in. Remember your path to a financially empowered life starts with a single step.
So stay tuned for more live shows and podcasts covering a wide range of financial wellness topics. I am your host, Marie Jo Caesar. I will be back again next week, Thursday at the same time. And until then continue merging life and money. Bye for now.