September 4, 2024 • 14 mins
In this episode of the Melby Money Show, host Shaun Melby addresses the common financial anxieties faced by millennials, such as the fear of making mistakes, dealing with financial jargon, and worrying about not having enough money. Shaun emphasizes the importance of understanding and confronting these fears to gain financial confidence and control. He provides practical strategies including financial education, setting manageable goals, and seeking professional advice. Additionally, the episode outlines actionable steps like budgeting, tracking expenses, building an emergency fund, and beginning to invest. The ultimate goal is to equip listeners with the knowledge and tools needed for financial empowerment and stability.
00:00 Introduction to Financial Anxiety
01:22 Common Financial Fears
04:18 Overcoming Limiting Beliefs
06:14 Practical Strategies for Financial Control
08:17 Budgeting and Emergency Funds
09:47 Investing Basics
10:39 Recap and Final Tips
12:20 Conclusion and Farewell
This podcast is for informational and educational purposes only. This podcast is not financial advice.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Shaun (00:21):
Welcome to the second episode of the Melby money show.
I'm your host, Sean Melby intoday's episode, we're going to
explore something that is reallycommon.
With many millennials.
And that is the feeling of beingoverwhelmed or anxious when
thinking about your money.
And that feeling keeps you fromactually making moves with your
money because there's a fear youmight make a mistake.
(00:43):
There's a complexity withfinancial jargon.
So you need to educate yourselfon what these terms mean.
Or you have the very commonworry of not having enough
money.
These anxieties can createsignificant barriers to taking
control of your financialfuture.
Understanding and addressingthese fears is crucial.
Taking control of your personalfinances.
(01:03):
Isn't just about the numbers.
It's about gaining confidenceand peace of mind.
By confronting these fearshead-on you can start to build a
more secure and empoweredfinancial life.
In this episode.
We'll explore the psychologicalbarriers that often hold people
back and provide practicalstrategies to overcome them.
We'll begin by talking about thecommon fears that many
(01:24):
millennials face when it comesto managing their finances.
From there.
We'll move on to practicalstrategies for confronting these
fears, including tips onfinancial education.
Setting manageable goals andseeking professional advice.
Finally we'll provide actionablesteps.
You can take to gain control ofyour finances, such as
budgeting, tracking expenses andbeginning to invest.
(01:47):
Our goal today is to equip youwith the knowledge and tools.
You need to overcome yourfinancial anxieties to take
control of your money.
By the end of this episode, youshould have a clear
understanding of the steps youcan take to move forward
confidently.
So let's get started on thisjourney towards financial
empowerment.
Let's dive into thepsychological barriers that
often prevent millennials fromtaking control of their
(02:08):
finances.
One of the most common fears isthe fear of making mistakes.
Many people worry that a singlemisstep could lead to
significant financial setbacks.
This fear can be paralyzing.
Causing individuals to avoidmaking any financial decisions
at all.
It's important to remember thatmistakes are a natural part of
the learning process.
(02:28):
Even seasoned investors andfinancial experts have made
errors along the way.
The key is to learn from theseexperiences and use them to make
more informed decisions in thefuture.
Another significant barrier isthe fear of financial jargon
terms like APR compound interestand asset allocation can seem
daunting.
Especially for those who are newto personal finance.
(02:51):
This fear of the unknown canlead to procrastination and a
reluctance to engage infinancial planning.
However financial literacy is askill that can be developed over
time.
You don't have to knoweverything about finances to get
started.
I found that the most difficultpart of taking control of your
finances, is taking that firststep.
But by breaking down complexterms into simpler concepts and
(03:13):
seeking out educationalresources.
Anyone can become morecomfortable with the language of
finance.
The fear of not having enoughmoney is also prevalent among
millennials.
With rising living costs,lingering student loan debt.
and economic uncertainties.
It's easy to feel like financialstability is out of reach.
(03:33):
This fear can lead to a scarcitymindset.
where individuals focus more onwhat they lack rather than what
they can achieve.
The media doesn't help with thisregard either.
It seems like every week I see anew, what I call millennials are
screwed headline.
When you see these all the time,you start to believe it and
think I might as well not doanything at all because it's
pointless.
And this is for another episode,but we definitely aren't screwed
(03:54):
as a generation.
We've just been dealt a notgreat hand, but we're starting
to do a decent job at playingwith the hand.
We've been dealt, all that to besaid, it's essential to shift
this perspective and recognizethat small, consistent steps can
lead to significant financialprogress.
Building an emergency fund, evenif it's just a few dollars at a
time, could provide a sense ofsecurity and a foundation for
(04:16):
future financial growth.
Another psychological barrier Isee is limiting beliefs.
I'm going to say a few sentenceshere and you can fill in the
blanks and see if any of thesestrike you.
People like me don't have blank.
My family has always been pooror lower.
Middle-class.
I can't be wealthy becauseblank.
(04:38):
I'm barely scraping by how can Ibegin to think about.
Blank.
I'll never be able to afford ahouse.
I'm just not good with money.
If I earn more money or becomewealthy, the people I grew up
with and my family will resentme.
Did any of these strike a nerve?
These limiting beliefs become areality.
(04:59):
Because you've let them.
And I'm not trying to be hard onyou, but it's the reality of the
situation and recognizing thatas the first step towards
overcoming them.
When you have a mindset likethis, it is hard to overcome.
You have to start flipping theselimiting beliefs on their head
and start saying things likethis.
People like me do have blank.
(05:20):
It could be a house investments,no debts.
My family has always been pooror lower middle-class and I'm
going to change that trajectory.
I can be wealthy because blank.
That blank could be because Iwork hard because I deserve it
or because I want to, or reallyanything else.
(05:40):
I'm barely scraping by, and I'mgoing to change that because I
want to.
I will be able to afford ahouse.
I'm not good with money rightnow.
And I'm going to change that.
If I earn more money or becomewealthy, the people I grew up
with and my family will supportme.
Don't those sound, and feel somuch better.
(06:01):
I don't want to sound so woo.
For lack of better term.
But a mindset shift towardspositive thinking can completely
change your financialtrajectory.
But you have to want to makethat change.
For that change to stick.
now that we've identified thecommon fears, holding many
millennials back from takingcontrol of their finances.
Let's explore some practicalstrategies to confront and
(06:22):
overcome these fears.
The first step is education.
Financial literacy is a powerfultool that can de-mystify complex
concepts and empower you to makeinformed decisions.
Start by seeking out reliableresources, such as books,
podcasts, such as this one.
And online courses that breakdown financial topics into
(06:43):
understandable terms.
There are a ton of websites outthere as well that offer
comprehensive guides and tipsthat can help you build a solid
foundation in personal finances.
Setting small manageablefinancial goals is another
effective strategy instead ofovercoming yourself with the
idea of achieving financialindependence overnight.
Focus on small incrementalsteps.
(07:04):
Begin with simple tasks likecreating a monthly budget or
setting aside a small amount ofmoney each week for an emergency
fund.
These small victories can buildyour confidence, motivate you to
tackle larger financial goalsover time.
Remember.
Progress is progress.
No matter how small.
Seeking professional advice canalso be invaluable.
(07:24):
Financial advisors can providepersonal guidance, tailored to
your unique situation.
Helping you navigate complexfinancial decisions with
confidence.
If hiring a financial advisorfeels daunting, consider
starting with a freeconsultation to get a sense of
how they can assist you.
There are many free tools outthere for finding financial
planners that I like.
NAPFA, N a P F a X Y P N F P aCFP.
(07:50):
All these have nice tools tofind an advisor that is
qualified and would work wellwith you.
I personally am a member of allthese groups, but there are many
advisers on those platforms.
I feel do things, quote unquote,the right way.
By educating yourself sayingachievable goals and seeking
support.
You can begin to dismantle thepsychological barriers have been
holding you back.
These strategies, not only helpyou gain control over your
(08:11):
finances, but also foster asense of empowerment and
confidence that extends beyondmoney management.
Taking control of your moneystarts with creating a budget.
A budget is essentially a planfor your money outlining how
much you earn and how you intendto spend it.
Begin by listing all yoursources of income and then
categorize your expenses such ashousing utilities, groceries,
(08:32):
and entertainment.
This will give you a clearpicture of where your money is
going and to help you identifyareas where you can cut back.
Using budgeting apps likeMonarch money, or Y NAB, which
is you need a budget.
Can simplify this process,making it easier to track your
spending and stay on top of yourfinancial goals.
Regularly reviewing yourexpenses can help you spot
(08:54):
unnecessary expenditures andadjust your budget accordingly.
Setting up an emergency fund isalso essential.
Life is unpredictable and havinga financial cushion can provide
peace of mind and protect youfrom unexpected expenses, aim to
save at least three to sixmonths worth of living expenses.
Start small, unnecessary settingaside a manageable amount each
(09:15):
month until you reach your goal.
If you follow Dave Ramsey's babysteps, he says, start with a
thousand dollars.
But getting a thousand dollarsin a savings account, it shows
that you can also set andachieve those goals, which makes
you want to check off that boxfor the next school.
Also high yield savings accountsare a good option for storing
your emergency fund as theyoffer better interest rates than
(09:37):
traditional savings Scouts.
Many of these high yield savingsaccounts are online banks.
So you would need to becomfortable with not necessarily
having a brick and mortarlocation.
You could walk into.
Finally consider beginning toinvest.
Investing can seem intimidating,but it's a powerful way to grow
your wealth over time and youkind of need to.
Start by educating yourselfabout different investment
(09:59):
options, such as stocks, bonds,mutual funds and ETFs.
Robo advisors like bettermentand Wealthfront can help you get
started with minimal effortoffering personalized investment
strategies based on yourfinancial goals and risk
tolerance.
If your employer offers a 401kor 403 B, many of those
providers have educationalmaterials.
So you can learn even more aboutinvesting.
(10:20):
Remember the key to successfulinvesting is consistency and
having a longterm perspective.
If you're able to create abudget, track your expenses, set
up an emergency fund and startinvesting.
You're well ahead of the vastamount of the American public.
And you've created a nicefoundation to build off of.
As we wrap up today's episode,let's recap.
(10:42):
The key points we've discussed.
We started by addressing thecommon, psychological barriers
that often prevent millennialsfrom taking control of their
finances.
By understanding fears such asmaking mistakes, dealing with
financial jargon.
Worrying about not having themenough money or common.
You can begin to see that theseobstacles are surmountable.
Recognizing these fears is thefirst step towards overcoming
(11:05):
them.
We then moved on to practicalstrategies for confronting these
spheres.
Educating yourself aboutpersonal finance setting aside.
Educating yourself aboutpersonal finance setting, small
and manageable goals and seekingprofessional advice are all
effective ways to build yourfinancial confidence.
Finally we're providedactionable steps to take control
(11:28):
of your finances.
Creating a budget, tracking yourexpenses, setting up an
emergency fund and beginning toinvest are foundational actions
that can lead to greaterfinancial stability and growth.
These steps are not just aboutmanaging money, but also about
building a secure and empoweredfinancial future.
Before we go, here are a fewfinal tips to help you on your
(11:49):
journey.
Consider starting a financialjournal to track your progress
and reflect on your financialdecisions.
This can provide valuableinsights and help you stay
motivated.
Additionally, you can track yourassets and debts to track your
net worth over time.
You want to grow your assets andpay down your debts?
This is how you grow your networth, which is the key to
(12:10):
financial success.
This growth doesn't happenovernight.
So you have to mentally prepareyourself that this is a longterm
thing you're going to be workingon.
Thank you for joining us on thisepisode of the Melby money show,
we look forward to continuingthe conversations in future
episodes.
If you have any questions, you'dlike me to answer on the show.
You can email them tosean@melbymoney.com.
(12:33):
It would be an honor.
If you subscribe to the podcast,especially since many of the
algorithms.
It would be an honor if yousubscribe to the podcast,
especially since many of thealgorithms place a heavyweight
on early episodes, but also, sofuture episodes show up in your
feed.
If you feel compelled to leave areview or rating, I'd appreciate
(12:55):
that since getting feedback willonly make this podcast the best
it can be.
And finally, if you'd like toreceive my free email
newsletter, you can sign up atmy website, Melby money.com.
Farewell and I'll see you on thenext episode of the Melby money
show.
Welcome to the second episode of the Melby money show.
I'm your host, Sean Melby intoday's episode, we're going to
explore something that is reallycommon.
With many millennials.
And that is the feeling of beingoverwhelmed or anxious when
thinking about your money.
And that feeling keeps you fromactually making moves with your
money because there's a fear youmight make a mistake.
(00:43):
There's a complexity withfinancial jargon.
So you need to educate yourselfon what these terms mean.
Or you have the very commonworry of not having enough
money.
These anxieties can createsignificant barriers to taking
control of your financialfuture.
Understanding and addressingthese fears is crucial.
Taking control of your personalfinances.
(01:03):
Isn't just about the numbers.
It's about gaining confidenceand peace of mind.
By confronting these fearshead-on you can start to build a
more secure and empoweredfinancial life.
In this episode.
We'll explore the psychologicalbarriers that often hold people
back and provide practicalstrategies to overcome them.
We'll begin by talking about thecommon fears that many
(01:24):
millennials face when it comesto managing their finances.
From there.
We'll move on to practicalstrategies for confronting these
fears, including tips onfinancial education.
Setting manageable goals andseeking professional advice.
Finally we'll provide actionablesteps.
You can take to gain control ofyour finances, such as
budgeting, tracking expenses andbeginning to invest.
(01:47):
Our goal today is to equip youwith the knowledge and tools.
You need to overcome yourfinancial anxieties to take
control of your money.
By the end of this episode, youshould have a clear
understanding of the steps youcan take to move forward
confidently.
So let's get started on thisjourney towards financial
empowerment.
Let's dive into thepsychological barriers that
often prevent millennials fromtaking control of their
(02:08):
finances.
One of the most common fears isthe fear of making mistakes.
Many people worry that a singlemisstep could lead to
significant financial setbacks.
This fear can be paralyzing.
Causing individuals to avoidmaking any financial decisions
at all.
It's important to remember thatmistakes are a natural part of
the learning process.
(02:28):
Even seasoned investors andfinancial experts have made
errors along the way.
The key is to learn from theseexperiences and use them to make
more informed decisions in thefuture.
Another significant barrier isthe fear of financial jargon
terms like APR compound interestand asset allocation can seem
daunting.
Especially for those who are newto personal finance.
(02:51):
This fear of the unknown canlead to procrastination and a
reluctance to engage infinancial planning.
However financial literacy is askill that can be developed over
time.
You don't have to knoweverything about finances to get
started.
I found that the most difficultpart of taking control of your
finances, is taking that firststep.
But by breaking down complexterms into simpler concepts and
(03:13):
seeking out educationalresources.
Anyone can become morecomfortable with the language of
finance.
The fear of not having enoughmoney is also prevalent among
millennials.
With rising living costs,lingering student loan debt.
and economic uncertainties.
It's easy to feel like financialstability is out of reach.
(03:33):
This fear can lead to a scarcitymindset.
where individuals focus more onwhat they lack rather than what
they can achieve.
The media doesn't help with thisregard either.
It seems like every week I see anew, what I call millennials are
screwed headline.
When you see these all the time,you start to believe it and
think I might as well not doanything at all because it's
pointless.
And this is for another episode,but we definitely aren't screwed
(03:54):
as a generation.
We've just been dealt a notgreat hand, but we're starting
to do a decent job at playingwith the hand.
We've been dealt, all that to besaid, it's essential to shift
this perspective and recognizethat small, consistent steps can
lead to significant financialprogress.
Building an emergency fund, evenif it's just a few dollars at a
time, could provide a sense ofsecurity and a foundation for
(04:16):
future financial growth.
Another psychological barrier Isee is limiting beliefs.
I'm going to say a few sentenceshere and you can fill in the
blanks and see if any of thesestrike you.
People like me don't have blank.
My family has always been pooror lower.
Middle-class.
I can't be wealthy becauseblank.
(04:38):
I'm barely scraping by how can Ibegin to think about.
Blank.
I'll never be able to afford ahouse.
I'm just not good with money.
If I earn more money or becomewealthy, the people I grew up
with and my family will resentme.
Did any of these strike a nerve?
These limiting beliefs become areality.
(04:59):
Because you've let them.
And I'm not trying to be hard onyou, but it's the reality of the
situation and recognizing thatas the first step towards
overcoming them.
When you have a mindset likethis, it is hard to overcome.
You have to start flipping theselimiting beliefs on their head
and start saying things likethis.
People like me do have blank.
(05:20):
It could be a house investments,no debts.
My family has always been pooror lower middle-class and I'm
going to change that trajectory.
I can be wealthy because blank.
That blank could be because Iwork hard because I deserve it
or because I want to, or reallyanything else.
(05:40):
I'm barely scraping by, and I'mgoing to change that because I
want to.
I will be able to afford ahouse.
I'm not good with money rightnow.
And I'm going to change that.
If I earn more money or becomewealthy, the people I grew up
with and my family will supportme.
Don't those sound, and feel somuch better.
(06:01):
I don't want to sound so woo.
For lack of better term.
But a mindset shift towardspositive thinking can completely
change your financialtrajectory.
But you have to want to makethat change.
For that change to stick.
now that we've identified thecommon fears, holding many
millennials back from takingcontrol of their finances.
Let's explore some practicalstrategies to confront and
(06:22):
overcome these fears.
The first step is education.
Financial literacy is a powerfultool that can de-mystify complex
concepts and empower you to makeinformed decisions.
Start by seeking out reliableresources, such as books,
podcasts, such as this one.
And online courses that breakdown financial topics into
(06:43):
understandable terms.
There are a ton of websites outthere as well that offer
comprehensive guides and tipsthat can help you build a solid
foundation in personal finances.
Setting small manageablefinancial goals is another
effective strategy instead ofovercoming yourself with the
idea of achieving financialindependence overnight.
Focus on small incrementalsteps.
(07:04):
Begin with simple tasks likecreating a monthly budget or
setting aside a small amount ofmoney each week for an emergency
fund.
These small victories can buildyour confidence, motivate you to
tackle larger financial goalsover time.
Remember.
Progress is progress.
No matter how small.
Seeking professional advice canalso be invaluable.
(07:24):
Financial advisors can providepersonal guidance, tailored to
your unique situation.
Helping you navigate complexfinancial decisions with
confidence.
If hiring a financial advisorfeels daunting, consider
starting with a freeconsultation to get a sense of
how they can assist you.
There are many free tools outthere for finding financial
planners that I like.
NAPFA, N a P F a X Y P N F P aCFP.
(07:50):
All these have nice tools tofind an advisor that is
qualified and would work wellwith you.
I personally am a member of allthese groups, but there are many
advisers on those platforms.
I feel do things, quote unquote,the right way.
By educating yourself sayingachievable goals and seeking
support.
You can begin to dismantle thepsychological barriers have been
holding you back.
These strategies, not only helpyou gain control over your
(08:11):
finances, but also foster asense of empowerment and
confidence that extends beyondmoney management.
Taking control of your moneystarts with creating a budget.
A budget is essentially a planfor your money outlining how
much you earn and how you intendto spend it.
Begin by listing all yoursources of income and then
categorize your expenses such ashousing utilities, groceries,
(08:32):
and entertainment.
This will give you a clearpicture of where your money is
going and to help you identifyareas where you can cut back.
Using budgeting apps likeMonarch money, or Y NAB, which
is you need a budget.
Can simplify this process,making it easier to track your
spending and stay on top of yourfinancial goals.
Regularly reviewing yourexpenses can help you spot
(08:54):
unnecessary expenditures andadjust your budget accordingly.
Setting up an emergency fund isalso essential.
Life is unpredictable and havinga financial cushion can provide
peace of mind and protect youfrom unexpected expenses, aim to
save at least three to sixmonths worth of living expenses.
Start small, unnecessary settingaside a manageable amount each
(09:15):
month until you reach your goal.
If you follow Dave Ramsey's babysteps, he says, start with a
thousand dollars.
But getting a thousand dollarsin a savings account, it shows
that you can also set andachieve those goals, which makes
you want to check off that boxfor the next school.
Also high yield savings accountsare a good option for storing
your emergency fund as theyoffer better interest rates than
(09:37):
traditional savings Scouts.
Many of these high yield savingsaccounts are online banks.
So you would need to becomfortable with not necessarily
having a brick and mortarlocation.
You could walk into.
Finally consider beginning toinvest.
Investing can seem intimidating,but it's a powerful way to grow
your wealth over time and youkind of need to.
Start by educating yourselfabout different investment
(09:59):
options, such as stocks, bonds,mutual funds and ETFs.
Robo advisors like bettermentand Wealthfront can help you get
started with minimal effortoffering personalized investment
strategies based on yourfinancial goals and risk
tolerance.
If your employer offers a 401kor 403 B, many of those
providers have educationalmaterials.
So you can learn even more aboutinvesting.
(10:20):
Remember the key to successfulinvesting is consistency and
having a longterm perspective.
If you're able to create abudget, track your expenses, set
up an emergency fund and startinvesting.
You're well ahead of the vastamount of the American public.
And you've created a nicefoundation to build off of.
As we wrap up today's episode,let's recap.
(10:42):
The key points we've discussed.
We started by addressing thecommon, psychological barriers
that often prevent millennialsfrom taking control of their
finances.
By understanding fears such asmaking mistakes, dealing with
financial jargon.
Worrying about not having themenough money or common.
You can begin to see that theseobstacles are surmountable.
Recognizing these fears is thefirst step towards overcoming
(11:05):
them.
We then moved on to practicalstrategies for confronting these
spheres.
Educating yourself aboutpersonal finance setting aside.
Educating yourself aboutpersonal finance setting, small
and manageable goals and seekingprofessional advice are all
effective ways to build yourfinancial confidence.
Finally we're providedactionable steps to take control
(11:28):
of your finances.
Creating a budget, tracking yourexpenses, setting up an
emergency fund and beginning toinvest are foundational actions
that can lead to greaterfinancial stability and growth.
These steps are not just aboutmanaging money, but also about
building a secure and empoweredfinancial future.
Before we go, here are a fewfinal tips to help you on your
(11:49):
journey.
Consider starting a financialjournal to track your progress
and reflect on your financialdecisions.
This can provide valuableinsights and help you stay
motivated.
Additionally, you can track yourassets and debts to track your
net worth over time.
You want to grow your assets andpay down your debts?
This is how you grow your networth, which is the key to
(12:10):
financial success.
This growth doesn't happenovernight.
So you have to mentally prepareyourself that this is a longterm
thing you're going to be workingon.
Thank you for joining us on thisepisode of the Melby money show,
we look forward to continuingthe conversations in future
episodes.
If you have any questions, you'dlike me to answer on the show.
You can email them tosean@melbymoney.com.
(12:33):
It would be an honor.
If you subscribe to the podcast,especially since many of the
algorithms.
It would be an honor if yousubscribe to the podcast,
especially since many of thealgorithms place a heavyweight
on early episodes, but also, sofuture episodes show up in your
feed.
If you feel compelled to leave areview or rating, I'd appreciate
(12:55):
that since getting feedback willonly make this podcast the best
it can be.
And finally, if you'd like toreceive my free email
newsletter, you can sign up atmy website, Melby money.com.
Farewell and I'll see you on thenext episode of the Melby money
show.
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