Chapter 1 – What IS Money?

December 5, 2019 Vestpod

These mini-money guides are based on the practical money book "You're Not Broke You're Pre-Rich" by Emilie Bellet.

What is money for you? Money is deeply personal to all of us. It can mean freedom, an escape from stress or obligation, and stability. But thoughts and emotions around money can also be negative: feeling like you don’t deserve what you earn, feeling shame or jealousy, or like you don’t have and will never have enough.

Here’s another question – do you talk about money? Not many of us do. In fact, people are more likely to admit whether they’ve had an affair or an STI than whether they are in debt or have a good idea of what’s in their bank account. For example, think about the last time a friend asked you what you earned. Did you feel like you were devaluing your friend if you earnt more, or perhaps you were embarrassed if you earnt less? Perhaps you didn’t tell your friend and changed the conversation. Similarly, the stats show that many of us hide things from our partners, like if we are in debt. We need to be more open.

So, first, let’s get talking. It will strengthen our relationships and make us more confident. Start by being kinder, both to yourselves and each other. If your close friend came to you with a money problem, you’re not going to shout, “You’re hopeless at maths and you’re just BAD at money!” You know your friend is capable and well-meaning and can make small steps to changing their situation, and the same applies to you.

Second, money, just like everything else in life, comes down to emotions and mindset. We will discuss how to move towards that ‘growth mindset’ – where you encourage yourself to keep going, instead of convincing yourself you might as well give up at the first hurdle. The aim is to turn negatives into positives – yes, you can get out of debt. Yes, you can stick to a budget. You can save for your retirement.

By understanding the positive and negative emotions, and the slightly unrealistic thoughts in between – hey, I’ve just been paid, I feel like I’ve won the lottery! – we can better understand ourselves and change our ways, from the ‘shopper’s high’ to the regret of a splurge.

We all have our own money personality, but the way we spend and save is more about a glitch in our internal programming rather than an ingrained fault. Research shows our money habits are set by the age of seven, which is incredibly early. Most of us did not receive financial education at school or university: we have to learn it ourselves, or from our parents, and we’re more likely to be told to buy things throughout our lifetimes than taught how to save or invest.

It would be great if we could throw away the jargon, ditch the ‘taboos’, and get to grips with money – it will feel liberating and empowering. Money isn’t the end goal to happiness, but it can help us fulfil our potential.

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If you want to learn more about the book and see a few photos from the book tour, it’s here. You can order "You're Not Broke, You're Pre-Rich" on Amazon and if you’ve read the book and enjoyed it, I will be forever grateful if you could review it on Amazon or Goodreads.