September 4, 2024 • 21 mins
In this third episode of the Melby Money Show, host Shaun Melby explores a transformative concept for Millennials: viewing money as a tool. The episode explores common misconceptions that create a scarcity mindset and limit financial potential, emphasizing the importance of shifting perspectives to see money as a means to achieve goals. Additionally, the episode offers practical strategies to overcome limiting beliefs and addresses the economic concepts of inflation and deflation, discussing their impact since the COVID-19 pandemic. The benefits of compound interest and the importance of financial education are also highlighted, along with actionable steps to start using money strategically. The episode concludes with a call for community engagement and ongoing learning.
00:00 Introduction to the Melby Money Show
00:33 Changing Your Perspective on Money
02:23 Current Events: Inflation and Deflation
06:39 Understanding Compound Interest
08:12 Practical Steps to Shift Your Money Mindset
10:48 Overcoming Limiting Beliefs About Money
14:20 Actionable Steps for Financial Success
17:17 Conclusion and Final Thoughts
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 (00:22):
Welcome to the third episode of the Melby money show.
I'm your host, Shaun Melby.
And today's episode, we'll beexploring a crucial topic that
can transform the way you thinkabout and interact with money.
Viewing money as a tool.
For many millennials, money isoften associated with stress,
anxiety, and even fear.
We've grown up, hearing phraseslike money doesn't grow on trees
(00:44):
or money is the root of allevil.
Which can lead to a scarcitymindset, a negative relationship
with our finances.
The great recession, certainlypiled on that scarcity mindset
during some pretty formativeyears for us.
But if we can begin to shift ourperspective and recognize money
as a powerful tool, we canunlock new opportunities and
achieve our goals with greaterease.
(01:05):
For many people, they see moneyand finances is binary ones and
zeros in black and white.
What I mean by that is theythink if I can just get my
salary to a hundred thousanddollars or if I can just buy
that$750,000 house, or if I canjust get my student loans paid
off, followed by a thenstatement.
Then I'll be happy, then I'll beless stressed.
(01:26):
This is how people normallythink about money.
But the problem is when youcheck off the box for that
particular goal, there's a newbox to check off and you're
constantly chasing the nextthing.
So imagine for a moment thatmoney is like a hammer.
in the hands of a skilledcarpenter, a hammer can be used
to build a beautiful home createfurniture.
Or repair broken structure.
(01:46):
Similarly, when we view money asa tool.
We can use it to construct thelife we desire.
Whether that means buying ourfirst home, starting a business
or investing in our education.
By changing our mindset andembracing money as a means to an
end, rather than the end itself.
We open ourselves up to a worldof possibilities.
Throughout this episode, we'llexplore the common
(02:08):
misconceptions about money thathold millennials back and
provide practical strategies forovercoming these limiting
beliefs.
By the end of the episode.
You'll have a new foundappreciation for the power of
money and a roadmap forharnessing it's potential in
your own life.
But first let's talk aboutwhat's in the news with current
events.
In this episode's current event,we're going to be talking about
(02:30):
inflation and deflation.
We'll discuss what theseeconomic phenomenon are, how
they've behaved since thepandemic began and why?
I believe we're more likely tosee inflation continue to
moderate rather than slip intodeflation.
First we need to define whatinflation is.
Inflation is the rate at whichthe general level of prices for
(02:50):
goods and services is rising.
And consequently.
The purchasing power of currencyis falling.
In other words, when pricesincrease each dollar buys fewer
goods and services.
The most common measure ofinflation is the consumer price
index or CPI.
On the other hand, deflation isthe opposite.
(03:10):
It's a decrease in the generalprice level of goods and
services.
During deflation, the purchasingpower of currency rises over
time.
While falling prices might soundgood for consumers.
Deflation can be a sign ofeconomic weakness.
And lead to a vicious cycle,falling profits, wages, and
rising unemployment.
So while we're all clamoring forgrocery store prices decrease,
(03:32):
and we may see some of that insome goods, what is more likely
to happen is this is the newnormal level at which prices are
set at.
When the COVID 19 pandemic hitin early 2020.
The us economy, nearly ground toa hault.
In response, the government andthe federal reserve took
unprecedented actions to supportthe economy.
Thinking back to 2008.
(03:52):
The government response and thesubsequent recovery, the
government did not want torepeat the mistake of not having
enough of a government response.
So they went.
Big on their economic responsewhile necessary.
These actions led to a surge ininflation as the economy
reopened.
After running around 2% foryears from 2008 to 2020.
(04:13):
Because of the weak economicrecovery because of the weak
government response to the greatrecession.
The consumer price index jumpedto over 9% by June, 2022.
A 40 year high.
However, since peaking in 2022.
Inflationary pressures havesteadily eased.
The most recent CPI report forJuly, 2024 showed prices rose
(04:36):
2.9% from the year before.
This is the first time, yearover year.
Inflation has been under 3%since the spring of 2021.
While still above the Fed's 2%target.
This is major progress from the9% readings two years ago.
Core inflation.
Which excludes volatile food andenergy prices has fallen from 6%
(04:56):
to 3.2%.
Despite the progress oninflation.
Some people are clamoring fordeflation because they want
prices for goods and services tobe lower than they are today.
Go back to what they were in2019.
While it's a nice thought.
If that were to happen, it wouldbe pretty economically
destructive.
There are several factors why?
I think deflation is unlikelyand we'll continue to see
(05:17):
inflation, moderate.
The first reason.
The fed has aggressively raisedinterest rates from 0% to over
5%.
Which is cooling demand, higherborrowing costs are weighing on
rate sensitive sectors likehousing.
The second.
Fiscal stimulus is faded and isnow dragon growth.
As COVID-19 relief programs haveended.
(05:38):
The third.
Nationwide gasoline prices havefallen sharply to under$4.
A gallon is oil supplies haveincreased.
The fourth reason supply chainsare healing and goods.
Inflation has easedsubstantially used car prices
are now falling after surging50% plus earlier.
The fifth reason rents.
The biggest component of coreinflation are starting to soften
(06:01):
as well with national rentsdeclining since last fall,
according to private datasources.
The sixth reason.
Longer-term inflationexpectations remain well
anchored.
Reducing the risk of a 1970sstyle wage price spiral.
While inflation surged after thepandemic price pressures have
clearly peaked and aremoderating.
Despite some concerns, deflationappears unlikely given the still
(06:25):
supportive fiscal and monetarypolicy, strong labor market, and
well anchored inflationexpectations.
The most likely scenario is acontinued gradual easing of
inflation back towards the Fed's2% target overtime.
Now a word from today's sponsor.
This episode of the Melby moneyshow is brought to you by our
friend at compound interest.
(06:47):
Compound interest is like asnowball rolling down a hill,
growing bigger and faster as itgoes.
When you invest your money, itearns interest.
But here's the real magic.
The interest you earn alsostarts earning interest itself.
Your money grows upon itself,compounding over time.
Let's say invest a thousanddollars in it earns a 10% growth
in the first year.
(07:08):
You now have$1,100.
And year two, that entire$1,100earns 10% again, growing to
$1,210.
The original investment and theinterest from your one.
Both earned interest in yeartwo.
This compounding effectcontinues year after year.
The earlier you start investing,the more time you give compound
(07:31):
interest to work in your favor.
Even small amounts investedregularly can snowball into
significant wealth over thelongterm.
Thanks to the power ofcompounding.
Albert Einstein allegedly oncesaid, quote, compound interest
is the eighth wonder of theworld.
He who understands it, earns it.
He who doesn't pays it unquote.
To put your money to work.
Consider investing indiversified stock and bond funds
(07:53):
within your 401k IRA or otherinvestment accounts, then sit
back and let compound interest,do the heavy lifting for you
over time.
Your future self will.
Thank you.
Compound interest, helping Melbymoney show listeners, harness
the power of compounding tobuild longterm wealth.
Now back to the show.
Today's episode is aboutshifting your mindset around
(08:15):
money and thinking of it as atool to achieve your goals,
rather than a target to beachieved thinking if I could
just make a hundred thousanddollars, then I wouldn't be so
stressed is limiting.
What would be so different ifyou made a hundred thousand
dollars?
But by thinking in a way of I'mgoing to earn my MBA, because
that is the best way I canincrease my earning potential is
(08:36):
a better framework.
Let's dive deeper into what Imean to view money as a tool.
When we think of tools, we oftenpicture tangible objects like
hammers, screwdrivers, or paintbrushes.
These tools are designed to helpus accomplish specific tasks
more efficiently andeffectively.
In the same way, money is a toolthat can help us achieve our
goals and create the life wedesire.
(08:57):
By viewing money as a tool,millennials can make more
intentional and strategicfinancial decisions.
Instead of spending moneyimpulsively or without a clear
purpose, we can prioritize ourspending based on our values and
long-term objectives.
For example.
If your goal is to buy a house.
You can use money as a tool tosave for down payment, improve
your credit score and researchaffordable mortgage options.
(09:19):
By aligning your financialhabits with your goals, you'll
be better equipped to makeprogress and achieve success.
Similarly, when we recognizemoney as a tool, we can develop
healthier saving habits.
Rather than viewing, saving as arestriction or sacrifice.
We can see it as a means to anend.
Every dollar saved as a stepcloser to our dreams, whether
that's starting a businesspursuing further education or
(09:42):
building an emergency fund.
By shifting our perspective andunderstanding that saving is an
active way to use money as atool, we can find more
motivation and satisfaction inthe process.
Let's consider a few real lifeexamples on how millennials can
use money as a tool to achievetheir goals.
If your dream is to start yourown business, you can use money
to invest in your education,attend workshops or conferences.
(10:02):
And purchase the necessaryequipment or inventory.
If you want to further yourcareer, you can use money to
enroll in courses, obtained,certifications or hire a career
coach.
And if you're looking to buy ahouse, you can use money to save
for down payment improve yourcredit score and research,
affordable mortgage options.
In each of these scenarios,money serves as a powerful tool
to help you take action and makeprogress towards your
(10:23):
objectives.
By viewing money as a tool,millennials can transform their
relationship with their financesand feel more empowered to
create the life they want.
It's not about accumulatingwealth for the sake of it, but
rather using money strategicallyto achieve your goals and live
in alignment with our values.
With this mindset shift, we canapproach our financial decisions
(10:44):
with greater clarity purpose.
And competence.
One of the biggest obstaclesmillennials face when it comes
to viewing money as a tool isthe prevalence of limiting
beliefs.
We talked about in the lastepisode, but these beliefs are
often ingrained from a youngage, can hold us back from
developing a healthy andempowering relationship with
money.
(11:05):
Some common limiting beliefsinclude money is the root of all
evil.
I'll never have enough money orrich people are greedy.
These negative associations canlead to feelings of guilt,
shame, or fear around money,preventing us from using it
effectively to achieve ourgoals.
Think about growing up in you'resix years old, you're in target
or Walmart and looking atdifferent toys.
(11:27):
You ask your parent for one.
And what do you hear back?
Do you hear.
We can't afford that.
These sorts of things getingrained in you.
My earliest memory about money.
Is that, that exact scenario.
I might've been a little youngerthan six.
I'd ask my mom for something.
And she'd say we can't affordthat, or we don't have money for
that.
(11:47):
Just to get me to move on.
To which I just matter offactly, say, just write a check,
mom.
Clearly, I didn't understand howchecks work.
I just thought you buy thingswith checks and never really
thought about where that moneyactually came from the point
being.
These limiting beliefs can startearly.
To overcome these limitingbeliefs.
(12:08):
It's essential to recognize thatthey are just that.
Beliefs, not facts.
By questioning and challengingthese beliefs, we can start to
shift our mindset and develop amore positive outlook on money.
One effective strategy is toreframe negative thoughts into
positive affirmations.
And these can feel a little woo.
So bear with me.
For example, instead of thinkingI'll never have enough money try
(12:30):
saying.
I am capable of attractingabundance into my life.
It sounds funny at first, butsay it again.
I am capable of attractingabundance into my life.
Again, I am capable ofattracting abundance into my
life.
One more time.
I am capable of attractingabundance into my life.
(12:53):
I hope you're actually sayingthis with me.
Do you feel different by thefourth time you said it out
loud.
I know I do.
repeatedly affirming a moreempowering belief.
We can gradually rewire ourthought patterns and change our
relationship with money.
Another powerful way to overcomelimiting beliefs is to seek out
(13:14):
success stories and role models.
Many millennials have alreadytransformed their mindset around
money and used it as a tool toachieve their dreams.
Changing your mindset aroundmoney is a process.
And it's important to be patientand compassionate with yourself
along the way.
Seek out resources, such asbooks, podcasts, or financial
education courses that can helpyou develop a more positive,
(13:34):
empowering relationship withmoney.
Surround yourself withlike-minded individuals who are
also committed to using money asa tool for good.
And remember every small stepyou take towards changing your
beliefs as a step closer tofinancial freedom and
fulfillment.
By overcoming limiting beliefsand adopting a more positive
mindset around money,millennials can unlock their
full potential and use money asa powerful tool to create the
(13:55):
life they desire.
It's not about becoming rich forthe sake of it, but rather about
aligning your financial habitswith your values and goals.
With persistence education.
And willingness to challenge oldbeliefs.
Anyone can transform theirrelationship with money and use
it to build a brighter future.
Now that we've explored theimportance of viewing money as a
(14:17):
tool and address some of thelimiting beliefs that may hold
millennials back.
Let's dive into actual steps.
You can take to start puttingthis mindset shift into
practice.
The first step is to create abudget.
tracking your income andexpenses, you can gain a clear
understanding of where yourmoney is going and identify
areas where you can cut back orreallocate funds towards your
goals.
(14:38):
There are many budgeting appsand tools available such as
Monarch money or YNAB, which isshort for you need a budget.
That can help you get startedand stay organized.
Once you have a budget in place,set clear financial goals for
yourself.
These goals should be specific,measurable, achievable,
relevant, and time-bound.
So that acronym spells smart.
(15:01):
Again, Specific.
Measurable, achievable, relevantand time bound.
For example.
Instead of saying, I want tosave more money.
Set a goal like I want to save$5,000 for an emergency fund
within the next 12 months.
By breaking your goals down intosmaller actual steps.
(15:23):
You can make steady progress andstay motivated along the way.
Investing in personaldevelopment is another powerful
way to start viewing money as atool.
By acquiring new skills,knowledge or experiences, you
can increase your earningpotential and open up new
opportunities for growth.
This may include taking onlinecourses, attending workshops or
(15:43):
conferences, or seeking outmentorships from experienced
professionals in your field.
Remember investing in yourselfis one of the best investments
you can make as it can paydividends for years to come.
Financial education is alsocrucial for millennials who want
to change their relationshipwith money.
Seek out resources, such asbooks, podcasts, or online
(16:03):
courses.
That can help you learn moreabout personal finance,
investing and wealth buildingstrategies.
Some popular resources includethe book, simple wealth,
inevitable wealth by NickMurray.
The book, the millionaire nextdoor by Thomas J.
Stanley and William D.
Danco.
And the Morgan Housel podcast byMorgan Housel.
(16:25):
By educating yourself aboutmoney and developing a strong
financial foundation.
You'll be better equipped tomake informed decisions and use
money as a tool to achieve yourgoals.
Finally.
Remember that changing yourmindset and financial habits is
a journey, not a destination.
It's important to be patientwith yourself and celebrate the
small victories along the way.
Start by implementing one or twoof these actionable steps and
(16:47):
gradually build from there.
Surround yourself withsupportive friends, family
members, or a community oflike-minded individuals who can
encourage you and hold youaccountable.
And most importantly, don't beafraid to make a mistake.
Or course correct as needed.
Every experience, whetherpositive or negative is an
opportunity to learn and grow.
By taking consistent, purposefulaction and maintaining a growth
(17:10):
mindset, you can transform yourrelationship with money and use
it as a powerful tool.
To create the life you desire.
As we wrap up today's episode,let's take a moment to reflect
on the key points we'vediscussed.
We've explored thetransformative power of viewing
money as a tool and how thismindset shift can empower
millennials to take control oftheir financial future.
By recognizing money as a meansto an end, rather than an end in
(17:34):
itself.
We can make more intentional andstrategic decisions.
That aligned with our values andgoals.
We've also dressed the commonlimiting beliefs that may hold
us back and provided strategiesfor overcoming these beliefs and
adopting a more positive andempowering mindset.
We've emphasized the importanceof taking action and
implementing practicalstrategies to start viewing
(17:55):
money as a tool.
From creating a budget andsetting financial goals to
investing in personaldevelopment, seeking financial
education.
There are many steps you cantake to transform your
relationship with money.
Remember change doesn't happenovernight, but by taking small,
consistent actions andmaintaining a growth mindset,
you can make significantprogress over time.
(18:16):
We encourage you to startimplementing the strategies
would discuss today, whetherit's tracking your expenses,
setting a specific financialgoal or seeking out new learning
opportunities.
Take that first step towardsviewing money as a tool.
Surround yourself withsupportive individuals who share
your values and encourage youalong the way.
Even if that person is just methrough this podcast.
(18:37):
I want to help you build thisthing.
And most importantly, be patientand compassionate with yourself.
Embrace the journey.
Learn from your experiences andcelebrate your progress no
matter how small.
I'd love to hear from you aboutyour own experiences with
viewing money as a tool.
What strategies have worked foryou?
What challenges have you faced?
(18:58):
And how have you overcome them?
During the conversation, oursocial media platforms are reach
out to us directly.
By sharing our stories andsupporting one another.
We can create a community oflike-minded individuals who are
committed to using money as atool for positive change.
Remember, you have the power totransform your relationship with
money and create the life youdesire.
(19:19):
By embracing money as a tool andtaking purposeful action.
You can unlock newopportunities.
Achieve your goals.
And make a meaningful impact inthe world.
Thank you for joining us on thisepisode of the Melby money show,
we can look forward tocontinuing the conversation in
future episodes.
If you have any questions, you'dlike me to answer on the show.
You can email them toshaun@melbymoney.com.
(19:42):
It would really be an honor ifyou subscribe to the podcast,
especially since many of thealgorithms place a heavyweight
on these early episodes, butalso, so future episodes show up
in your feed.
If you feel compelled to leave areview or rating, I'd appreciate
that.
As well as getting feedback willonly help make this podcast the
best it can be.
And finally, if you'd like toreceive my free email
(20:03):
newsletter, you can sign up atmy website, Melbymoney.com
farewell, and I'll see you onthe next episode of the Melby
money show.
Welcome to the third episode of the Melby money show.
I'm your host, Shaun Melby.
And today's episode, we'll beexploring a crucial topic that
can transform the way you thinkabout and interact with money.
Viewing money as a tool.
For many millennials, money isoften associated with stress,
anxiety, and even fear.
We've grown up, hearing phraseslike money doesn't grow on trees
(00:44):
or money is the root of allevil.
Which can lead to a scarcitymindset, a negative relationship
with our finances.
The great recession, certainlypiled on that scarcity mindset
during some pretty formativeyears for us.
But if we can begin to shift ourperspective and recognize money
as a powerful tool, we canunlock new opportunities and
achieve our goals with greaterease.
(01:05):
For many people, they see moneyand finances is binary ones and
zeros in black and white.
What I mean by that is theythink if I can just get my
salary to a hundred thousanddollars or if I can just buy
that$750,000 house, or if I canjust get my student loans paid
off, followed by a thenstatement.
Then I'll be happy, then I'll beless stressed.
(01:26):
This is how people normallythink about money.
But the problem is when youcheck off the box for that
particular goal, there's a newbox to check off and you're
constantly chasing the nextthing.
So imagine for a moment thatmoney is like a hammer.
in the hands of a skilledcarpenter, a hammer can be used
to build a beautiful home createfurniture.
Or repair broken structure.
(01:46):
Similarly, when we view money asa tool.
We can use it to construct thelife we desire.
Whether that means buying ourfirst home, starting a business
or investing in our education.
By changing our mindset andembracing money as a means to an
end, rather than the end itself.
We open ourselves up to a worldof possibilities.
Throughout this episode, we'llexplore the common
(02:08):
misconceptions about money thathold millennials back and
provide practical strategies forovercoming these limiting
beliefs.
By the end of the episode.
You'll have a new foundappreciation for the power of
money and a roadmap forharnessing it's potential in
your own life.
But first let's talk aboutwhat's in the news with current
events.
In this episode's current event,we're going to be talking about
(02:30):
inflation and deflation.
We'll discuss what theseeconomic phenomenon are, how
they've behaved since thepandemic began and why?
I believe we're more likely tosee inflation continue to
moderate rather than slip intodeflation.
First we need to define whatinflation is.
Inflation is the rate at whichthe general level of prices for
(02:50):
goods and services is rising.
And consequently.
The purchasing power of currencyis falling.
In other words, when pricesincrease each dollar buys fewer
goods and services.
The most common measure ofinflation is the consumer price
index or CPI.
On the other hand, deflation isthe opposite.
(03:10):
It's a decrease in the generalprice level of goods and
services.
During deflation, the purchasingpower of currency rises over
time.
While falling prices might soundgood for consumers.
Deflation can be a sign ofeconomic weakness.
And lead to a vicious cycle,falling profits, wages, and
rising unemployment.
So while we're all clamoring forgrocery store prices decrease,
(03:32):
and we may see some of that insome goods, what is more likely
to happen is this is the newnormal level at which prices are
set at.
When the COVID 19 pandemic hitin early 2020.
The us economy, nearly ground toa hault.
In response, the government andthe federal reserve took
unprecedented actions to supportthe economy.
Thinking back to 2008.
(03:52):
The government response and thesubsequent recovery, the
government did not want torepeat the mistake of not having
enough of a government response.
So they went.
Big on their economic responsewhile necessary.
These actions led to a surge ininflation as the economy
reopened.
After running around 2% foryears from 2008 to 2020.
(04:13):
Because of the weak economicrecovery because of the weak
government response to the greatrecession.
The consumer price index jumpedto over 9% by June, 2022.
A 40 year high.
However, since peaking in 2022.
Inflationary pressures havesteadily eased.
The most recent CPI report forJuly, 2024 showed prices rose
(04:36):
2.9% from the year before.
This is the first time, yearover year.
Inflation has been under 3%since the spring of 2021.
While still above the Fed's 2%target.
This is major progress from the9% readings two years ago.
Core inflation.
Which excludes volatile food andenergy prices has fallen from 6%
(04:56):
to 3.2%.
Despite the progress oninflation.
Some people are clamoring fordeflation because they want
prices for goods and services tobe lower than they are today.
Go back to what they were in2019.
While it's a nice thought.
If that were to happen, it wouldbe pretty economically
destructive.
There are several factors why?
I think deflation is unlikelyand we'll continue to see
(05:17):
inflation, moderate.
The first reason.
The fed has aggressively raisedinterest rates from 0% to over
5%.
Which is cooling demand, higherborrowing costs are weighing on
rate sensitive sectors likehousing.
The second.
Fiscal stimulus is faded and isnow dragon growth.
As COVID-19 relief programs haveended.
(05:38):
The third.
Nationwide gasoline prices havefallen sharply to under$4.
A gallon is oil supplies haveincreased.
The fourth reason supply chainsare healing and goods.
Inflation has easedsubstantially used car prices
are now falling after surging50% plus earlier.
The fifth reason rents.
The biggest component of coreinflation are starting to soften
(06:01):
as well with national rentsdeclining since last fall,
according to private datasources.
The sixth reason.
Longer-term inflationexpectations remain well
anchored.
Reducing the risk of a 1970sstyle wage price spiral.
While inflation surged after thepandemic price pressures have
clearly peaked and aremoderating.
Despite some concerns, deflationappears unlikely given the still
(06:25):
supportive fiscal and monetarypolicy, strong labor market, and
well anchored inflationexpectations.
The most likely scenario is acontinued gradual easing of
inflation back towards the Fed's2% target overtime.
Now a word from today's sponsor.
This episode of the Melby moneyshow is brought to you by our
friend at compound interest.
(06:47):
Compound interest is like asnowball rolling down a hill,
growing bigger and faster as itgoes.
When you invest your money, itearns interest.
But here's the real magic.
The interest you earn alsostarts earning interest itself.
Your money grows upon itself,compounding over time.
Let's say invest a thousanddollars in it earns a 10% growth
in the first year.
(07:08):
You now have$1,100.
And year two, that entire$1,100earns 10% again, growing to
$1,210.
The original investment and theinterest from your one.
Both earned interest in yeartwo.
This compounding effectcontinues year after year.
The earlier you start investing,the more time you give compound
(07:31):
interest to work in your favor.
Even small amounts investedregularly can snowball into
significant wealth over thelongterm.
Thanks to the power ofcompounding.
Albert Einstein allegedly oncesaid, quote, compound interest
is the eighth wonder of theworld.
He who understands it, earns it.
He who doesn't pays it unquote.
To put your money to work.
Consider investing indiversified stock and bond funds
(07:53):
within your 401k IRA or otherinvestment accounts, then sit
back and let compound interest,do the heavy lifting for you
over time.
Your future self will.
Thank you.
Compound interest, helping Melbymoney show listeners, harness
the power of compounding tobuild longterm wealth.
Now back to the show.
Today's episode is aboutshifting your mindset around
(08:15):
money and thinking of it as atool to achieve your goals,
rather than a target to beachieved thinking if I could
just make a hundred thousanddollars, then I wouldn't be so
stressed is limiting.
What would be so different ifyou made a hundred thousand
dollars?
But by thinking in a way of I'mgoing to earn my MBA, because
that is the best way I canincrease my earning potential is
(08:36):
a better framework.
Let's dive deeper into what Imean to view money as a tool.
When we think of tools, we oftenpicture tangible objects like
hammers, screwdrivers, or paintbrushes.
These tools are designed to helpus accomplish specific tasks
more efficiently andeffectively.
In the same way, money is a toolthat can help us achieve our
goals and create the life wedesire.
(08:57):
By viewing money as a tool,millennials can make more
intentional and strategicfinancial decisions.
Instead of spending moneyimpulsively or without a clear
purpose, we can prioritize ourspending based on our values and
long-term objectives.
For example.
If your goal is to buy a house.
You can use money as a tool tosave for down payment, improve
your credit score and researchaffordable mortgage options.
(09:19):
By aligning your financialhabits with your goals, you'll
be better equipped to makeprogress and achieve success.
Similarly, when we recognizemoney as a tool, we can develop
healthier saving habits.
Rather than viewing, saving as arestriction or sacrifice.
We can see it as a means to anend.
Every dollar saved as a stepcloser to our dreams, whether
that's starting a businesspursuing further education or
(09:42):
building an emergency fund.
By shifting our perspective andunderstanding that saving is an
active way to use money as atool, we can find more
motivation and satisfaction inthe process.
Let's consider a few real lifeexamples on how millennials can
use money as a tool to achievetheir goals.
If your dream is to start yourown business, you can use money
to invest in your education,attend workshops or conferences.
(10:02):
And purchase the necessaryequipment or inventory.
If you want to further yourcareer, you can use money to
enroll in courses, obtained,certifications or hire a career
coach.
And if you're looking to buy ahouse, you can use money to save
for down payment improve yourcredit score and research,
affordable mortgage options.
In each of these scenarios,money serves as a powerful tool
to help you take action and makeprogress towards your
(10:23):
objectives.
By viewing money as a tool,millennials can transform their
relationship with their financesand feel more empowered to
create the life they want.
It's not about accumulatingwealth for the sake of it, but
rather using money strategicallyto achieve your goals and live
in alignment with our values.
With this mindset shift, we canapproach our financial decisions
(10:44):
with greater clarity purpose.
And competence.
One of the biggest obstaclesmillennials face when it comes
to viewing money as a tool isthe prevalence of limiting
beliefs.
We talked about in the lastepisode, but these beliefs are
often ingrained from a youngage, can hold us back from
developing a healthy andempowering relationship with
money.
(11:05):
Some common limiting beliefsinclude money is the root of all
evil.
I'll never have enough money orrich people are greedy.
These negative associations canlead to feelings of guilt,
shame, or fear around money,preventing us from using it
effectively to achieve ourgoals.
Think about growing up in you'resix years old, you're in target
or Walmart and looking atdifferent toys.
(11:27):
You ask your parent for one.
And what do you hear back?
Do you hear.
We can't afford that.
These sorts of things getingrained in you.
My earliest memory about money.
Is that, that exact scenario.
I might've been a little youngerthan six.
I'd ask my mom for something.
And she'd say we can't affordthat, or we don't have money for
that.
(11:47):
Just to get me to move on.
To which I just matter offactly, say, just write a check,
mom.
Clearly, I didn't understand howchecks work.
I just thought you buy thingswith checks and never really
thought about where that moneyactually came from the point
being.
These limiting beliefs can startearly.
To overcome these limitingbeliefs.
(12:08):
It's essential to recognize thatthey are just that.
Beliefs, not facts.
By questioning and challengingthese beliefs, we can start to
shift our mindset and develop amore positive outlook on money.
One effective strategy is toreframe negative thoughts into
positive affirmations.
And these can feel a little woo.
So bear with me.
For example, instead of thinkingI'll never have enough money try
(12:30):
saying.
I am capable of attractingabundance into my life.
It sounds funny at first, butsay it again.
I am capable of attractingabundance into my life.
Again, I am capable ofattracting abundance into my
life.
One more time.
I am capable of attractingabundance into my life.
(12:53):
I hope you're actually sayingthis with me.
Do you feel different by thefourth time you said it out
loud.
I know I do.
repeatedly affirming a moreempowering belief.
We can gradually rewire ourthought patterns and change our
relationship with money.
Another powerful way to overcomelimiting beliefs is to seek out
(13:14):
success stories and role models.
Many millennials have alreadytransformed their mindset around
money and used it as a tool toachieve their dreams.
Changing your mindset aroundmoney is a process.
And it's important to be patientand compassionate with yourself
along the way.
Seek out resources, such asbooks, podcasts, or financial
education courses that can helpyou develop a more positive,
(13:34):
empowering relationship withmoney.
Surround yourself withlike-minded individuals who are
also committed to using money asa tool for good.
And remember every small stepyou take towards changing your
beliefs as a step closer tofinancial freedom and
fulfillment.
By overcoming limiting beliefsand adopting a more positive
mindset around money,millennials can unlock their
full potential and use money asa powerful tool to create the
(13:55):
life they desire.
It's not about becoming rich forthe sake of it, but rather about
aligning your financial habitswith your values and goals.
With persistence education.
And willingness to challenge oldbeliefs.
Anyone can transform theirrelationship with money and use
it to build a brighter future.
Now that we've explored theimportance of viewing money as a
(14:17):
tool and address some of thelimiting beliefs that may hold
millennials back.
Let's dive into actual steps.
You can take to start puttingthis mindset shift into
practice.
The first step is to create abudget.
tracking your income andexpenses, you can gain a clear
understanding of where yourmoney is going and identify
areas where you can cut back orreallocate funds towards your
goals.
(14:38):
There are many budgeting appsand tools available such as
Monarch money or YNAB, which isshort for you need a budget.
That can help you get startedand stay organized.
Once you have a budget in place,set clear financial goals for
yourself.
These goals should be specific,measurable, achievable,
relevant, and time-bound.
So that acronym spells smart.
(15:01):
Again, Specific.
Measurable, achievable, relevantand time bound.
For example.
Instead of saying, I want tosave more money.
Set a goal like I want to save$5,000 for an emergency fund
within the next 12 months.
By breaking your goals down intosmaller actual steps.
(15:23):
You can make steady progress andstay motivated along the way.
Investing in personaldevelopment is another powerful
way to start viewing money as atool.
By acquiring new skills,knowledge or experiences, you
can increase your earningpotential and open up new
opportunities for growth.
This may include taking onlinecourses, attending workshops or
(15:43):
conferences, or seeking outmentorships from experienced
professionals in your field.
Remember investing in yourselfis one of the best investments
you can make as it can paydividends for years to come.
Financial education is alsocrucial for millennials who want
to change their relationshipwith money.
Seek out resources, such asbooks, podcasts, or online
(16:03):
courses.
That can help you learn moreabout personal finance,
investing and wealth buildingstrategies.
Some popular resources includethe book, simple wealth,
inevitable wealth by NickMurray.
The book, the millionaire nextdoor by Thomas J.
Stanley and William D.
Danco.
And the Morgan Housel podcast byMorgan Housel.
(16:25):
By educating yourself aboutmoney and developing a strong
financial foundation.
You'll be better equipped tomake informed decisions and use
money as a tool to achieve yourgoals.
Finally.
Remember that changing yourmindset and financial habits is
a journey, not a destination.
It's important to be patientwith yourself and celebrate the
small victories along the way.
Start by implementing one or twoof these actionable steps and
(16:47):
gradually build from there.
Surround yourself withsupportive friends, family
members, or a community oflike-minded individuals who can
encourage you and hold youaccountable.
And most importantly, don't beafraid to make a mistake.
Or course correct as needed.
Every experience, whetherpositive or negative is an
opportunity to learn and grow.
By taking consistent, purposefulaction and maintaining a growth
(17:10):
mindset, you can transform yourrelationship with money and use
it as a powerful tool.
To create the life you desire.
As we wrap up today's episode,let's take a moment to reflect
on the key points we'vediscussed.
We've explored thetransformative power of viewing
money as a tool and how thismindset shift can empower
millennials to take control oftheir financial future.
By recognizing money as a meansto an end, rather than an end in
(17:34):
itself.
We can make more intentional andstrategic decisions.
That aligned with our values andgoals.
We've also dressed the commonlimiting beliefs that may hold
us back and provided strategiesfor overcoming these beliefs and
adopting a more positive andempowering mindset.
We've emphasized the importanceof taking action and
implementing practicalstrategies to start viewing
(17:55):
money as a tool.
From creating a budget andsetting financial goals to
investing in personaldevelopment, seeking financial
education.
There are many steps you cantake to transform your
relationship with money.
Remember change doesn't happenovernight, but by taking small,
consistent actions andmaintaining a growth mindset,
you can make significantprogress over time.
(18:16):
We encourage you to startimplementing the strategies
would discuss today, whetherit's tracking your expenses,
setting a specific financialgoal or seeking out new learning
opportunities.
Take that first step towardsviewing money as a tool.
Surround yourself withsupportive individuals who share
your values and encourage youalong the way.
Even if that person is just methrough this podcast.
(18:37):
I want to help you build thisthing.
And most importantly, be patientand compassionate with yourself.
Embrace the journey.
Learn from your experiences andcelebrate your progress no
matter how small.
I'd love to hear from you aboutyour own experiences with
viewing money as a tool.
What strategies have worked foryou?
What challenges have you faced?
(18:58):
And how have you overcome them?
During the conversation, oursocial media platforms are reach
out to us directly.
By sharing our stories andsupporting one another.
We can create a community oflike-minded individuals who are
committed to using money as atool for positive change.
Remember, you have the power totransform your relationship with
money and create the life youdesire.
(19:19):
By embracing money as a tool andtaking purposeful action.
You can unlock newopportunities.
Achieve your goals.
And make a meaningful impact inthe world.
Thank you for joining us on thisepisode of the Melby money show,
we can look forward tocontinuing the conversation in
future episodes.
If you have any questions, you'dlike me to answer on the show.
You can email them toshaun@melbymoney.com.
(19:42):
It would really be an honor ifyou subscribe to the podcast,
especially since many of thealgorithms place a heavyweight
on these early episodes, butalso, so future episodes show up
in your feed.
If you feel compelled to leave areview or rating, I'd appreciate
that.
As well as getting feedback willonly help make this podcast the
best it can be.
And finally, if you'd like toreceive my free email
(20:03):
newsletter, you can sign up atmy website, Melbymoney.com
farewell, and I'll see you onthe next episode of the Melby
money show.
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