Brad chats with certified financial planner Shannah Game, who shares insights from her book Unraveling Your Relationship with Money. They discuss the emotional and psychological aspects of finance, emphasizing the importance of understanding one's money stories, setting intentional spending boundaries, and achieving financial independence beyond just numbers and logic.
Key Topics Discussed:
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Introduction to Shannah Game (00:00:48)
- Shannah is a CFP and author of Unraveling Your Relationship with Money.
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The Emotional Side of Finance (00:01:35)
- Personal finance is 90% psychology and emotion.
- Shannah discusses her own journey and revelations about money.
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Understanding Money Trauma (00:06:48)
- Money trauma can affect anyone, not just those from impoverished backgrounds.
- Discussing childhood experiences and their impact on adult financial behaviors.
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Strategies for Intentional Spending (00:12:15)
- Implement the 24-hour rule before purchases to reduce impulsive spending.
- Create space between stimulus and response to make intentional financial choices.
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Creating Your Financial Rules (00:16:40)
- The concept of setting personal financial boundaries and making your own rules.
- Importance of tailoring financial strategies to individual needs.
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Personal Growth and Self-trust (00:36:17)
- Fostering a growth mindset to combat feelings of being "bad with money."
- Emphasizing the importance of self-trust in financial decision-making.
Key Insights:
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Money as Joy, Not Struggle (00:06:00)
- Money should enhance life rather than be a source of stress.
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Conscious Spending (00:10:07)
- Create space to reflect before making purchases.
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Set Your Own Financial Rules (00:16:40)
- Empower yourself to establish personal financial guidelines that resonate with your values.
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Our Brains and Money (00:18:39)
- Recognizing how cognitive processes can sabotage financial well-being.
Actionable Takeaways:
- Apply a 24-hour cooling-off period before making purchases to minimize impulsive spending. (Timestamp: 00:11:22)
- Use highlighters to categorize your spending and uncover hidden patterns affecting your financial decisions. (Timestamp: 00:29:23)
FAQs:
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What are some strategies to manage emotional spending?
- Implement a 24-hour waiting period before purchases. (00:10:58)
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How can I uncover my money stories?
- Reflect on spending patterns in a relaxed environment to identify emotional triggers. (00:29:23)
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Why is it important to address money trauma?
- It helps break negative cycles, fostering a healthier financial relationship. (00:07:53)
Discussion Questions to Consider:
- What are your earliest memories related to money, and how do they shape your current beliefs? (00:08:15)
- How can you create a healthier emotional relationship with money? (00:39:17)
Related Resources:
- Unraveling Your Relationship with Money - Book Link (00:41:01)
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Examine your financial beliefs deeply and review the actionable steps to cultivate a healthier relationship with money, paving the way toward financial independence.