#23: Create Financial Progress by Letting Go of These 2 Common Practices

Tired of letting money control your life and dictate your choices? 

It's time to break free from the chains, and reclaim your personal power! 

In this episode of the Money Healing Podcast, we're going to demystify 2 popular money strategies that are actually holding you back.

In this episode, you will learn:

•  My anti-budget system that can help you organize your finances, and achieve your dreams without the need for restriction. 
• The importance of knowing your numbers and seeking clarity when comes to managing your money. 
• Debunking the myth that calculating your net worth is crucial, I introduce the concept of a Quarterly Financial Snapshot - a more holistic and insightful way to understand your financial situation. 

So, tune in and start healing your relationship with money! Yay!

If you would like to join my new 12- week live program, Create Fulfilling Abundance, please see below.

Thank you for being here ❤️

Join my 6-month program, Create Fulfilling Abundance.
Learn more and apply here: https://www.saveamillioncents.com/cfa

If you are interested in working with me 1:1, send me an email!

✨If this podcast is a helpful resource for you, please share it with your friends, on social media, and leave a 5-star rating and review.

💝 To receive your FREE Money Archetype Workbook, complete this form

Chance to win a 1:1 Call:
Complete this survey to enter a monthly draw for a chance to win a FREE 1:1 session with me.


Connect with me on Instagram for free tips, inspo: https://www.instagram.com/nadinezumot/

~Podcast theme song by The Jilted Irony

Transcript

Speaker 1: 0:15

Hello and welcome to the Money Healing Podcast, a weekly show hosted by yours truly Nadine Zommelt. My objective with this show is to help you, poke you and prod you and give you the tools so you can begin disentangling yourself from money, fear and anxiety. I know how money can be burdensome and I know how your money ruins, it can be blocking you from creativity and the goodness and the abundance that's out there waiting for you. I know because I've been there. Money used to be my oppressor and now it's just this cool friend that comes along the ride when I need it to. My mission in life is to help you heal your wounds through the same framework that helped me reclaim my own power. Cause what's out there in the personal finance world? It's deficient, disempowering and outdated and it's not trauma informed. Through creating trauma informed containers and programs, my aim is to help you shift and heal your relationship with money so it's no longer a burden. Once you loosen the grip of money wounds, life will open up. You start seeing opportunities you might have missed in the past because your thinking was clouded by fear and anxiety, and then you begin to co-create with the universe, which is also called manifestation. I say this phrase a lot, but I will say it again and again and again until I am blue in the face. The world needs you to show up as you, in your power, in your authenticity, your imperfections, your rebellion and in your whole truth, because if this little girl from Jordan can do it, then so can you. So, before we get started today, i would love to invite you to follow me on Instagram at Nadine Zumot N-A-D-I-N-E-Z-U-M-O-T, and subscribe to this podcast and maybe even share it with your own friends and audience to get them started on their own healing journey with money, because what's out there in the online world is outdated and oppressive and it needs a serious makeover, which brings us to today's topic.

Speaker 1: 2:45

There are a couple of things that are pretty popular in mainstream financial advice that I do not agree with and, frankly, from where I stand, they can actually limit your progress. You know why? Because they are unnecessary and you can reap their benefits doing other things that can actually empower you and create progress. The first thing that you need to ditch is the belief that to be good at money, you require a budget. You do not, and this is not a rant. If you were to come to me for help, i will never put you on a budget. As a matter of fact, if you came to me with a budget, i would most probably get you off of it. You do not require a budget. What you require what you need is clarity. So let's start with the basics. What's a budget?

Speaker 1: 3:46

According to the Oxford online dictionary, a budget is an estimate of income and expenditure for a set period of time. That sounds benign, it sounds like a matter of fact, but as an adjective, the word budget is a word to describe something that is not expensive, in other words, cheap. So when we say we're on a budget or when we put ourselves on a budget, it gives off a certain feeling of limitation. You don't need a budget. You need clarity means you need to get very clear on what your income is, what your outgoing expenses are, how much you owe and what you want your money to do for you. There's no other way around. It love.

Speaker 1: 4:36

Honestly, if you don't know your numbers, it's going to be a pretty tough job to make progress. And if you know you are at a deficit in other words, if you constantly run out of money at the end or at the middle of every month then you need to know by how much. Shrugging your shoulders and saying I don't have enough is one thing, but shrugging your shoulders and saying exactly what you need, how much you are short, is actually what creates progress. What I'm encouraging you here is to be proactive, not passive. This is just like it's the equivalent of you start your day knowing that you need to get some shit done and being passive about it and allowing time to dictate what you get done, versus sitting down early in the morning on whenever you wake up and creating a to-do list of what needs to be done and plan to get it done. So proactive, not passive.

Speaker 1: 5:37

But I want to put a little s-tricks on this. If you find yourself in total and complete helplessness when it comes to time management, money management and all that stuff and you find yourself in a state of debilitating overwhelm, procrastination, despair and hopelessness, this could be a physiological thing, not a psychological thing. This could be a question of your nervous system and not a question of discipline or mindset. I would strongly recommend that you see a holistic money coach or somatic therapist to help mobilize your nervous system out of that freeze response. If you come and see me in book a session, i could definitely help you with that. So, if you feel called to, the link is in the show notes. I do also share some awesome tips on how to move or mobilize that freeze response in an episode of this podcast episode 12, i believe, why.

Speaker 1: 6:35

Money scares the shit out of you. So check that out too. And here's the thing, y'all, life happens. You might find yourself in a position where it's difficult to make ends meet. But, my love, understanding how much you need will be very helpful because it can and will inform your decision. If you decide to ask for a raise, increase your prices or create new offers or take on a temporary part-time job, you need to know your numbers. Please consider getting clear on your numbers. So the second step with creating progress with your money is clarity on what your money is required to facilitate for you.

Speaker 1: 7:18

What I see happening is actually the other way around your finances dictating how you take care of yourself and how well you eat and how well you live your life. I want you to start thinking about turning this around. Your money serves you. You do not serve your money. Getting clear on that starts with a very simple step. It's way simpler than you think Getting sleep and rest. Honestly, y'all getting sleep and rest. When you're in a restful state, your decisions become clearer and your entire approach towards life will change. Getting clear on your needs, wants and your goals and your desires will further help you become more organized with your finances And it will inform step three, which, before I get into that, i would also like to add a little asterisk here. Second asterisk Doing the healing work will make your goals and desires clearer and more authentic, because sometimes we think we want something, but it's actually what I would call an inauthentic desire, meaning it's coming from your wounded self, not from your most authentic self. I also speak more about this in episode three, which is called rule number one never settle. All right, that takes us to step three.

Speaker 1: 8:39

Step three is getting your finances organized. So when people come to me, their finances look like we just opened a drawer and we found this world mess of tops, belts, bras, knickers, pens, hair ties, i don't know, like chapstick, like a bunch of things just pop out of the drawer. When your finances are messy like this, meaning all your money is piled up in one account, what will help you is what I love, love, love, love, love helping myself and my clients do, which is creating buckets or envelopes. Basically, it's like getting drawer dividers and making sure, like just emptying the drawer, putting the dividers in and making sure that all the tops are going in one and knickers are going in another place, chapsticks going on another place. I don't know why there's chapstick in this imaginary drawer, but you get my drift. So it's basically like just making sure everything is organized.

Speaker 1: 9:40

You will need a bucket, which is essentially a sub-account for every spending category and for every financial goal that you have. There are many banks that have caught on to this and they are facilitating this for their clients, so speak to your financial institution if you are interested And about the system. There's plenty out there online that talks about the bucket system. I didn't invent it, but I have been using it for over a decade. It has facilitated multiple overseas trips, multiple moves across the continents and starting my business from scratch, and I just love it and my clients love, love, love my take on it. I will be teaching you all about the ins and outs of the bucket system and how to create trauma-informed systems for your money inside my new program called Create Fulfilling Abundance. It starts in mid-July and if you want to take advantage of the early bird rates, then all you need to do is fill out the waitlist form that will be in the show notes for today.

Speaker 1: 10:47

The other thing you really want to consider doing is to save for recurring expenses every time you are paid. So say, you're paid twice a month, but rent comes out once a month. I don't want your entire paycheck to be eaten by the rent for that particular pay period, because that will create what we call a feast and famine or a binge and restrict cycle. You want a recurring expense to be honored every time you are paid. So if rent is $1,000 a month and you're paid twice a month, then you need to set $500 from every paycheck to cover for the rent. So when rent is due, it's there, right? You don't have to like no ways, like put all your money towards it. Everything, like the whole idea is that I want your finances to look as consistent as possible, because this also goes for your annual expenses.

Speaker 1: 11:46

What I'm describing here is what we call sinking funds in financial lingo. So say that you've got something that is due every quarter, you put money towards it, you estimate how much it is and maybe like high-ball it, and then divide that to just upon the um how many pay periods you have, and then, whenever that thing is due, you have the money that's there in its own little safety, in its own little savings account. I do the same with my business account. I have buckets for federal taxes, for state taxes and um annual expenses and the coaches or the consultants that I want to work with in the future, and I set money aside for those every month. So let's say, like um, i've got like a subscription that's annual, that is, that renews every July. I have money that has been saved towards it incrementally throughout the whole year. Um, something else that I would suggest like I know I'm jumping from like personal accounts to business accounts, but on a personal level, i would suggest you do that for birthdays and for Christmas as well. I know that a lot of you like to um give gifts for Christmas or Hanukkah. You know the whole festivities at the end of the year. You can also create a sinking fund for that, where you're actually saving for um gift giving throughout the whole year.

Speaker 1: 13:06

Okay, so here's another reason why I really love the bucket system because they take my dreams from my imagination, from my brain, and they turn them into, and the bucket system turns them into a plan. My secret to turning everything I want into reality is simple I create a bucket for it, so it becomes from this intangible thing in my brain to a plan, because I start saving money towards it. Even if I put a dollar towards it, i'm just honoring it, i'm telling myself it's safe to dream, i'm telling myself it's okay and it's great and it's encouraged to have desires, and that I'm not ignoring my own desires. In fact, i'm creating a bucket for them and putting money towards them. So that is something that I personally love. Something my clients love about the bucket system is they say that's really cool, that it facilitates their spending money guilt free, meaning the bucket system gets them like it keeps them organized. They have money set aside for their savings, for their bills, for their other obligations, and they become clear on how much money they have in every pay period and how much money they have like how much plain money that they can freely just spend on whatever they want. So that is something that I love doing and I encourage you to do, which is the bucket system, and if you need help with that, reach out or come and join us in create fulfilling abundance. I'd love to have you So.

Speaker 1: 14:46

Brings us to the second thing that you absolutely do not need for financial progress, which is calculating your net worth. No one will ever ask you about your personal net worth. So what's net worth? Net worth is your assets minus your liabilities. The very idea that your worth can be summed by a mathematical equation is the biggest indication that our financial system needs a makeover. Your worth is immeasurable and you are worthy of, whether you do or you do not have assets and liabilities. I never calculate my net worth. I actually do something way cooler, which I want to teach you here on this episode. I do what I call a quarterly financial snapshot. It's good to have a snapshot of where you're at currently, but this is going to be a lot of fun. It might sound crazy for you, but just stay with me because it's so cool, i love it And I'm going to beмо油's up to here on the next episode.

Speaker 1: 15:47

This exercise is partly inspired by one of my favorite books, which is called Your Money or Your Life, by Vicky Robin and Joe Dominguez, and what it essentially is. It's called My Total Life Income. So, yep, i like to tally up my total life income And I love it and it's fun, and I'm going to tell you in a second why it is a game changer to do it. So the way you do it is pretty straightforward. I would start by taking a look at your resume or your tax documents or your bank statements and add up pretty much every single dollar you've ever earned. And I would also even go back to the very beginning, way before you enter the workforce, and start adding up the money that you earned from chores, from babysitting, from the lemonade stand, from mowing the lawn, whatever anything you've ever earned. And, of course, i don't expect you to remember everything down to the last penny. So a rough estimate is totally cool.

Speaker 1: 16:51

So why I love this exercise and why I think it's important to do it, is because it shows you what's possible for you and that your future financial goals are doable. So say, it all adds up to like a quarter million. Right, that's $250,000. That's $250 you have made before. You knew what you know now and you've already created it. You can create it again. So this also shows you that money doesn't ever, ever, ever come from one place, and it also shows you that the source of money is not your job or your business or your clients. The source of money is you. You have the power to create money, okay, and I want you to start expanding your definition of assets, to think about all the life assets that you have your skills, experience, personality and what you naturally bring as in your gifts, your talents, your perspective, your energy, your, you know like the way you care about people, your unconditional love. Your earning power grows every single day because your earning power has nothing to do with work. It has to do with your energy.

Speaker 1: 18:21

And, before this gets too long, if you are someone who has debt, then please listen up. When you are looking at debt, the bank or the financial institution is doing a magnificent job tracking down how much you owe them. I want you to do the opposite. When you are creating your financial snapshot, i want you to add up how much you have already paid on your debt or your loans, not just how much you owe. As Dr Joe Dispenza says, energy flows where attention goes. If your attention is on what you owe, it is easy to feel discouraged, but if you pay attention to how much you've already paid, then that can create momentum and motivation. You see what's out there in the financial world. It's not wrong, it's just not trauma informed and it's just outdated.

Speaker 1: 19:21

So I created a Q&A form that I am going to attach to the show notes, called Ask Nadine.

Speaker 1: 19:29

Please feel free to use this form to submit any questions you have or anything you'd like me to cover on this podcast. And you know me, i love talking about money, trauma, informed finances, money healing, manifestation, life purpose, creating, soul, aligned business and all the stuff like that. So feel free to use it if you would like me to talk about something on this podcast, and I will be selecting questions according to what will be of most value for this community. So before I go, i just want to leave you with this personal note that I know that finances might feel a little bit daunting and overwhelming, but you can do it and don't be scared, and please reach out to me and reach out to somebody you feel safe with If you feel like it. There's no shame in that. We are conditioned to believe that we need to like come out of the womb good with money, and that's just the myth and that's not real. All right, my dears, i will see you next time. Until then, please take care. I love you and leave you Bye for now.