Let’s Talk Money: Live and Spend Consciously

Definition of Consciousness:
1. The quality or state of being aware especially of something within oneself.
2. The state or fact of being conscious of an external object, state, or fact.
3. Awareness: Especially concern for some social or political cause. (Merriam-Webster)

The definitions of consciousness that I will be focusing more about today are the first and second ones listed above. What is our personal state of consciousness in relation to money in our lives?

You may be wondering, “Joanna, your blog has been mostly about the environment, so where is this topic coming from?” Here is my attempt to share my humble opinion on the importance of money consciousness.

Money is a topic that often has been taboo. The older I have got, the more I realize that the story I learned about “money comes and goes” and growing up in the culture of “YOLO” is the opposite of a conscious relationship with this paper object we call money. To decide we won’t think about money is to reinforce the story underneath, the denial or fear of facing it.

Did you know that people of low socioeconomic status have higher rates of health issues, mental illness, less access to healthy diets and more? No one ever says, “I hate getting pay raises” or “I hate being a millionaire”. Not enough money to meet our basic needs= stress. Also, did you know that women and children are much more likely to live in poverty in comparison to men? I didn’t make this up, I’ve studied it and have seen it with so many people and families I’ve worked with over the years. So why is this? Well, VARIOUS factors play into this such as pregnancy, wage gaps, types of jobs women take, access to education, financial literacy etc. The one I want to focus on most are our BELIEFS about money.

Are we conscious of the story we tell ourselves about money? For some women maybe it is, “I will just find a partner with a good job and get married and my spouse will manage the money”. For men maybe it’s, “My partner is not educated about money so I will keep managing it”. Yesterday I was at a friend’s house and the story I heard was, “I already have over $300k in debt so I am never getting out of it. Might as well take out a loan and buy a house”. There are huge issues with these and many other beliefs that people have about money that keeps many people in cycles of poverty and living feeling “stuck”. I hope you do not stay “stuck” or feel victimized when you think about money, like I too felt in the past.

In full disclosure, it was not until a couple years ago where I woke the f*ck up. It happened unplanned like most experiences that just slap you in the face. I was dating someone at the time with a good income and I had a pretty crappy one at my past job for surviving in California, but I had my basic needs covered. The story I told myself, which was also a belief system I learned growing up, was that one day I would meet a partner and our finances would join and life will get better financially. That I could never make a good salary as a social worker. That over time my partner and my income will pay off my student loans and we’d happily ever after. That break up shook me emotionally, mentally and financially. The imaginary safety net I created in my head disappeared. And this is a story many people tell themselves. I am not an anomaly.

Men, the story some of you have learned is that you need to be the “breadwinner” and provide financial security. So you make an income and do the basic investing in your savings and 401k if you have one and maybe make a lot of other decisions along the way- EVEN IF YOU HAVE NO IDEA WHAT YOU ARE DOING. That is the problem. Living consciously requires us to be awake and aware of our decisions. It means admitting that we have no idea what we are doing, asking hard questions, and learning to make informed decisions. It means being aware of the stories we have within our minds and the control we allow money to have in our lives.

I am not a financial expert. I am just a normal 29 year old woman, with student debt, from an immigrant family, trying to pull myself out of the financial cycle my parents and their parents have lived in. Thankfully, I have always had my basic needs met and was loved and cared for which money cannot buy, but I refuse to recreate the same money mistakes my family has made over generations. If this resonates with you I hope you find the motivation to live money consciously too. So how do we do this? Read, listen to podcasts, meet people who are where you want to be financially and most important take action with your new education. Identify your values around money, not goals, your values which will drive you if you feel like throwing in the towel. I can write forever about this subject and there is a lot more I need to learn, but what I can do if you are wanting a place to start is leave book recommendations below. If you just thought, “I don’t have money to buy books”, go to a library and borrow books, download Libby for free and check out audiobooks from libraries statewide, and listen to free podcasts daily.

What I can share with you is that becoming money conscious is empowering. I no longer carry around the level of anxiety I did two years or so ago when I split with my partner. I have a plan that I am committed to so that I can get to my value of freedom. Living free to do all the things I love like travel, give back to charities, support sustainable businesses, eat healthy and live with more peace of mind. You deserve this too.

“The lack of money is the root of all evil.” – Mark Twain

Below is a map of the unemployment rates in the United States from July 2019 to April 2020. If you are hurting right now, emotionally, mentally and financially. What will you do to avoid falling to despair in the event we have another unexpected crisis? How will you protect yourself, your family or your business? It is clearer, now more than ever, that we cannot rely on anyone else to do this for us. Invest in yourself and encourage others to do the same.

Some quick tips that work for me:

Make a detailed budget of your income and monthly expenses. Here you might find out your spending money on things that don’t align with your values or have things like automatic withdrawals coming out that you forgot about, that you no longer need! Cut where you can!
Save 3-6 months of your cost of living into an emergency fund. This will vary on your ability to tolerate risk. Also the anticipated turn around time for securing work if you were to get laid off or lose your business.
Pay yourself first! This habit will get you prioritizing your finances and future. But obviously, pay your bills after!
Only buy what you need when you have cash, do not put yourself in debt by using credit cards for purchases. If I use my credit card I only use it when I know I already have the money. Some banks have points or money back promotions that you can take advantage of. The point- do not spend what you don’t have.
Donate to charity (In order to receive you must also give. This also helps get you out of a scarcity mindset to an abundance mindset)
Save ahead for vacations or things you need
Tell your close friends and family about your financial goals and do not let other people’s money stories allow you to go backwards
Thrift shop or buy second hand when you can
Print your financial goals and put them on the door in your room so you see them daily