Melanie breaks through an insidious habit that causes many people who make big money struggle to make ends meet: spending it all at once! In this episode, you will hear a coaching session between Melanie and Joanna Vargas, with techniques to save but still allot money to spend, as well as changing your mindset about what it means to save, and take ownership of the financial aspect.
[1:15] Melanie gives some background on Joanna’s business, situation, and celebration, before she dives into the coaching session.
[4:20] Joanna is struggling with ravenous spending when she gets a surge of income. How do we allow ourselves to spend, without being self-conscious about it?
[5:56] Melanie talks through some reasons for overspending: is it trying to create an experience to fit in or be seen in a certain way, or a starvation, where we feel relief when we get some money, and feel like we need to “catch up?” In some instances, it may be a matter of buying your way into importance, or spending your money to get back to a sense of normalcy.
[7:50] Commit to creating your own personal financial reserves. This can create a mindset of comfort, because you always have money.
[8:33] “The Bucket Philosophy”: When people feel starved for money, and put themselves in a state of restriction, when they do get money, it leaves so quickly, because of their being frugal for so long. The Bucket Philosophy is a saving strategy that allots the money for different funds.
[9:21] Five buckets: life needs, discretionary spending, short-term savings, long-term savings, and “the play fund.”
[11:23] This allows you to ensure that you are saving the money you need, but also allowing yourself to set aside some money that you can feel good about spending.
[15:00] Is there a stigma around people who save money? Joanna opens up about her struggle with what saving money means.
[18:21] There may be a feeling of losing the ability to feel valued and important, and feel in control. One of the ways to be in control is to take ownership of the financial.
[19:11] Melanie talks Joanna through an exercise to help reconcile two ideas that seem like they can’t coexist. In this case, it is creating sustainable wealth, and living a fun life.
[22:38] Take a moment to sit down and think about some of these techniques and exercises, to see if you can have the same breakthrough!
Mentioned in This Episode:
Melanie’s book: Rewired for Wealth