What's Up With Finances & Emotions?
Description: In this episode, Melissa and Maribeth (from ADD Professionals) discuss ways to make financial management less daunting.
Money management can seem scary and daunting at first, but after you jump in, you usually find that you have more money (and hope) than you originally thought.
There is something powerful about being able to know how much money you have in the bank and, with a few saving skills, being able to actually watch it grow.
Remember money doesn’t have intrinsic value. It is neither good nor bad. It just is. Money is simply a tool for obtaining the things you need and want in life.
When you take away the emotional value you have placed on money, it can be much easier to deal with. However, as with many things in life, emotions get in the way.
One step to overcoming the mistake of being emotional about money is to recognize and own the emotions you do have around money. Then, see if you can figure out whether or not those emotions are valid. You may find they aren’t, but instead, are based on ancestral money issues. For example, You were told as a child that successful people carry designer luggage. Now, you do not have a designer budget or luggage, so you don’t feel successful. It is important to notice that you want to feel successful. While there is nothing wrong with that, it is important to note that it is just a feeling and you can take care of the feeling in several non-monetary ways. For example, you can be proud of the value and health of your bottom line or budget and buy reasonable luggage.
A second step to reducing the emotions tied to money is to think of money as a tool to get the things you want in life that money can buy. Pre think about what you really want vs. need vs. value. By managing your money well, it can give you security and peace of mind, not just more stuff.
The third step to reducing emotion around money is to create a plan, and then live that plan in your daily earning and spending habits. That overwhelming desire, or emotion, which creeps in and grabs you when you pass the designer luggage sale, when you really don’t need, or even truly want more luggage, will vanish when you live from your plan and purpose.
These three steps can help replace fear and anxiety with harmony and security. Sometimes we should use our logic instead of our emotions as a guide to get the life we really want.