In this episode, James and Phoebe explore a sometimes awkward and uncomfortable topic: relationships with money. They talk about their own experiences, as well as sharing a simple exercise on how you can improve your own relationship with money! Everyone has a relationship with money. There are people that are really good at saving money, as well as others who are good at making money. James feels that successful entrepreneurs fall into the second category.
Your relationship with money is indicated by your actions, and your habits, such as how you feel when you spend your money.
We all have “stories” about money, which is where your relationship with money originates from. In most cases, our stories come from a young age as a result of the influence of our parents or environment.
James grew up with a scarcity story related to money, and he recalls his parents always turning lights off and closing doors to conserve heat.
“If money comes easy to you, it’s ok if a little bit slips through your fingers. If it’s really hard to get, you hold onto it with a death grip.”
Phoebe recalls her dad leaving printed credit card statements on her bed, with the unknown charges highlighted. She would then have to explain to him what they were.
Her mother grew up in a household with money and had a much different money story than her father. Her mother wouldn’t look at prices and choose value over cost.
Parents should observe how they’re talking about money around their kids, as it could influence the future actions and habits of the child.
Phoebe says that instead of saying, “I can’t afford it”, you can say, “I choose to invest my money in different things.”
James shares that in order for money to flow in, it has to be willing to flow out. He gives the following exercise to help your relationship with money:
The next time you make a transaction or pay for something, visualize and imagine where that money will go as you send it out. Imagine how others will use it. Whenever the uncomfortable feeling is at its highest, is when you’ll want to do this exercise. The more you practice this, the more empowered you will feel about money.