Which one of these sounds most like you? 🙋♀️ (Let’s be honest- I’m not judging).
- Money? 💰 Ugh, that’s a stressful topic. I’d rather not have to talk about it.
- I haven’t really thought about money much. I let it take care of itself, or let someone I know handle all of that.
- Just talking about money makes me think about all those yelling matches my parents had overspending. I don’t want that to be me.
- What’s to stress about? I have my money under control. I see it as something to steward so I can serve others well.
No matter which one of those had you nodding your head in agreement, the way you grew up probably had something to do with it.
And if you’re wondering how you can develop a better (and less stressful) view of money, develop better money habits, and start dreaming about what your future could look like, this episode is for you.
Know Yourself, Know Your Money
She’s back! Yep, the national speaker, podcast host, bestselling author, and money guru also known as Rachel Cruze joined me on the podcast again.
(BTW, if you missed her first SHE Podcast interview go check out Episode 28 on when, how, and why to start saving those hard-earned dollars).
Rachel’s new book, Know Yourself, Know Your Money, explores WHY we handle money the way we do and what we can do about it.
We had a great conversation about what shapes our view of money, how we can improve our money mindset, and the huge role dreaming plays in handing money and saving for the future.
And guys, Rachel brought the KNOWLEDGE. 🔥🔥 Trust me, it’s gonna bless your ears (and your heart and wallet, too).
Where You Get Your Money Habits From
Rachel kicked it off by talking about how our childhood often determines how we view money. The way we were brought up is like our “money classroom” where we learn how to think and communicate about money.
Not all the money classrooms are healthy though, so we may realize we have negative views or emotions about money that we’ve taken into adulthood.
So, what’s the first step? Figure out which money classroom you’re a part of. Money is mainly communicated verbally and emotionally. And that forms the four money classrooms:
- Anxious (verbally closed and emotionally stressed). Money was never talked about growing up and it feels stressful. The best thing you can do is to work on talking about money and making a plan that reduces the stress.
- Unstable (verbally open and emotionally stressed). Growing up, there was a lot of fighting about money. You tend not to engage in money because you’re afraid that if you do, it will lead to conflict and tension. The best thing you can do is to create a plan, get on the same page as your partner and see yourself as a team. Have a communication plan in place so you can learn to talk through money with each other in a positive way.
- Unaware (verbally closed, but emotionally calm). You didn’t really think about money growing up because it was never talked about. There weren’t issues, but your head was in the sand. Now you tend to yield to others and let your spouse or someone else handle the money. The best thing you can do is to be engaged and involved with your money, so you know what’s going on. Educate yourself and stay updated on everything.
- Secure (Verbally open and emotionally calm). This is the healthiest view of money. Money was talked about in a healthy way and there was a plan for handling the money. You have control of your money, there’s a plan and goals. You communicate about the plan and are willing to talk it through with others.
So, do you know which money classroom you grew up in? If you have a negative mindset around money, don’t worry. You can change it – but it will take a little effort on your part.
Money doesn’t have to be a taboo subject. It’s a tool. If we can begin to shift to a healthier viewpoint of money, not only can we fuel the things we really want to do with our lives, but we can also make a greater impact!
It all starts with how you view money. Then you’ve got to address your money habits.
Bad Money Habits to Avoid
Our own habits can sometimes be one of the biggest challenges we face when it comes to handling money. So I asked Rachel to talk about some poor money habits she sees a lot, and how we can address them.
She named three bad money habits:
- Seeing yourself as an owner, not a manager. Money is a Biblical calling – we are called to be stewards of what God has given us, and to manage it well. We don’t’ truly own anything (not our degree, our marriage, our job or our money). They are all gifts God has given us and we are called to be a manager. That means we’re called to manage our money well and not just see it as something we own and can throw away.
- Not budgeting. When it comes to money, some people think that it’s all gonna work out. Or they avoid looking at the numbers because it’s stressful. But in the long-term, that’s not going to serve you, your family, or those around you. You have to be very intentional about where your money is going. Create a zero-based budget by assigning every dollar to a category. Take your income, then subtract your expenses (including giving and saving) until you equal zero.
- Depend on your credit card for emergencies. If you’re relying on your credit card to be your safety net and act as an emergency fund, you’re not setting yourself up for success. If you have an emergency car problem and you pay for it with your card, you now not only have a car problem, but also a money problem. Work on saving up for an emergency fund, so that cash is in the bank.
Why Dreaming is an Important Money Habit
Dreaming plays a big role in money management. In fact, my hubby Matt and I have regular “dream-together” dates where we talk about our money and career goals, and what we’re saving for. We ask ourselves WHY we want to save money and what our future could look like with that saved money.
As Rachel said, “whatever your dream is, the money has to follow. When people aren’t saving, they’re not dreaming.”
Let that sink in for a sec.
When you have a dream in mind (whether it’s to travel, build a house, start your own biz or become a stay-at-home-mom), you’re willing to do the hard work because you know what you’re working towards.
Plan regular times to dream and remember your goals. Then set realistic expectations for yourself (with a realistic timeline).
You may have to start small, by saving $1,000 for an emergency fund. Then your goal may be to pay off your debt, from smallest to largest. And realistically, that may take you a few years. That’s okay.
You’re setting the foundation for that big dream of yours. And the earlier you can start, the better off you’ll be.
Remember: small wins add up to big victories over time.
Ready to improve the way you see money and start dreaming again?
Hop in the car, go for a drive and tune into this episode to learn:
- What shapes your view of money
- How your mindset affects how to handle money now
- Ways to change the way you view money
- The top bad money habits and how to avoid them
- How dreaming can affect money management
- How to dream when you’re living paycheck-to-paycheck
You won’t want to miss it!
Want to learn more from Rachel Cruze? Head over to her website at www.rachelcruze.com