It’s a loaded word and idea.
We all have stories that we tell ourselves about money, what it is and how we interact with it. Some people pursue it as an end goal while others avoid it like the plague. Either way, these ideas are guiding many decisions and relationships that we have in our lives. Relationships with our families, friends, and society as a whole. As entrepreneurs and business owners, we carry all of those personal ideas into our businesses and it can have a tremendous impact on how we operate and grow.
In this episode, my guest Dr. Sarah Newcomb and I have an in-depth discussion about how to unpack and understand our relationship with finances so that we can make better decisions without leaving our values behind. She is the author of Loaded: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind
Some of the things we discuss
- What it’s really is about
- Why we have such different relationships with money
- How to align it with your needs values
- How to uncover where we get our ideas
From the Inside Flap
Does money represent luxury, security, and peace of mind, or stress, inequality, barriers, and greed? LOADED is written for anyone who struggles with their complex relationship with the so-called “root of all evil.”
Rather than offering traditional financial advice, Sarah Newcomb (a Morningstar behavioral economist) digs deeper and approaches money management from a fresh angle. LOADED explains how our experiences with money have a psychological basis and can often run counter to our core values.
Our personal history has a profound influence on how we handle or mishandle money. In reality, however, money is a simple tool, a neutral resource that is full of possibilities. It can be used for good or for ill, and how we use it is entirely a matter of personal choice. Our relationship with money is almost never about the numbers. It is about the stories we tell ourselves because of those numbers. We all come to believe certain stories based on our upbringing and our experiences with money. This is where our relationship with money is rooted, and this is where sound money management begins.
Based on years of research and filled with illustrative stories, LOADED offers an important guide for identifying the harmful core beliefs about money and what can be done to challenge and overcome those negative beliefs. Once a clear understanding of an individual’s beliefs about money is established, the human-centered approach to budgeting and money management can be put into action. This budgeting structure incorporates several principles from psychology that are missing or misaligned in traditional budgeting methods.
The fresh approach outlined in this book is a money management method rooted in psychology that offers a way of changing one’s financial life by creating a plan for money that is both deeply satisfying and also sustainable over the long term. The author also includes a wealth of worksheets and personal money psychology assessments to aid in the LOADED process.
LOADED offers an approach for discovering and understanding your relationship with money that will lead to more peace and satisfaction in your financial life.
DR. SARAH NEWCOMB is an expert in the psychology of financial decision-making. As a behavioral economist at Morningstar, Inc. she works to integrate behavioral science into financial management applications. Dr. Newcomb holds a PhD in behavioral economics, a master’s degree in financial economics, and a master’s certification in personal financial planning. Through speaking, writing, and product development, she aims to translate the findings from scholarly research into practical and useful tools for everyone. She lives with her daughter in Washington, DC.
Read her column in Psychology Today called Loaded: Link
Linkedin: Dr. Sarah Newcomb