In episode 05, the founder of Bad Ass Chicks Rock, Joanna Vargas who is also super talented high-ends event host and a fitness rock star, shares the pattern of financial ebb and flow that is so common to small business owners. We dig into a profound mindset shift about what it means to save so that Joanna can take ownership of the financial wealth building success.
[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!
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