Last month, we dove into the complexities of taxes and business structures, unpacking not only the essentials but also the overwhelming aspects of financial management. With the tax deadline looming, many of us found ourselves in the familiar scramble, piecing together financial details and wrestling with the weighty burden of taxes. But why do we perpetually find ourselves caught in this cycle of procrastination and last-minute frenzy?
How many times have you made the promise to yourself, “Next year, I’ll get my act together”? Yet, despite our best intentions, it seems nothing changes. So, why is this?
Well, it’s not just about the lack of routine or the demands of touring, though those certainly play a part. It’s about something deeper—the narrative we’ve internalized about money. Our relationship with money is deeply intertwined with our experiences, beliefs, and emotions. Whether it’s the financial habits inherited from our upbringing, the societal pressures we succumb to, or the emotional triggers that influence our spending decisions, our Money Story profoundly shapes our financial behaviors.
For instance, I recently chatted with a production assistant. She was stressing over what to get her mother for her birthday, feeling compelled to compensate for her absence with extravagant gifts. However, while there’s nothing wrong with giving thoughtful gifts, equating love solely with material possessions may lead us astray. Money, essentially just a piece of paper, can carry immense emotional weight, often steering us in misguided directions.
Money Memories
Believe it or not, many of our thoughts, feelings, and emotions about money stem from our childhood. Maybe your parents argued about money, or maybe they splurged without a care in the world. These early experiences shape our current perceptions of money. Take a moment to reflect on some of your earliest money memories. Do you find yourself repeating certain sayings about money, like “money buys happiness” or “I will never have enough money?” These subconscious beliefs significantly influence our financial decision-making as adults, often holding us back from making sound choices.
But here’s the good news: we can rewrite our Money Story. It starts with delving into our past and understanding why we make the financial choices we do. Do you give money to a friend in need even if your own financial future isn’t secure? Do you go out for expensive dinners that you can’t really afford because they make you happy in the moment? How do we unravel some of these habits and start anew? We begin by acknowledging our preconceived notions about money. When we understand where our beliefs came from, we can replace them with positive narratives that promote better financial habits and overall well-being. Begin by asking yourself, “Why?” Feel free to insert whatever story applies to you and go through the same exercise.
- Why do you think the expensive dinners out make you feel happy??
- Do you want to be with your friends, and this is what everyone is doing?
- Do you want to fill something inside that is missing?
- What is that something?
When we can figure that out, we can find other ways to meet that need. If it’s about friends, maybe gathering for happy hour instead of the full meal would do the trick? Or what about inviting everyone over and they bring their favorite drink and food? In the case of giving money that you don’t have,
- Why do you feel like you need to give?
- Do you feel like you don’t deserve the money?
- Do you just want to help?
If you want to help, is there another, possibly more meaningful way to accomplish this? Instead of giving money to a friend in need, which you may not be able to afford, consider alternative ways to offer support. For example, could you connect them with job training programs, mental health resources, or other services that could address their needs more effectively? In the case of the production assistant, would her mother have been just as touched by a heartfelt letter or a video or reel of special photos over the years?
In many cases, money has become our default solution for solving problems, but it’s important to recognize that there are various alternative approaches available. There is no one-size-fits-all solution. Identifying your core values is another crucial step in this journey. What truly matters to you? Family, security, health, travel—these are just a few examples of values that drive our financial decisions. In a recent workshop, participants were asked to identify their top values. Surprisingly, many found that their spending habits did not align with their top values. If you were in that workshop, would you have raised your hand? If not, that’s perfectly okay. The beauty of discussing our financial health and money situation is that it brings mindfulness to the forefront, without judgment. If you find that you’re not spending in alignment with your values, let’s work together to identify what changes can be made to ensure your spending reflects what truly matters to you.
Financial Well-Being
Next, it’s essential to release the grip of guilt, shame, and fear, forgiving ourselves for past financial mistakes. This can be a challenging task, especially in industries where appearances often mask internal struggles. The growing movement within the music industry to prioritize mental health is commendable, and I believe a similar emphasis on financial health is equally important. It’s crucial to recognize that financial well-being significantly impacts both mental and physical health, and vice versa, especially in high-stress environments like touring and live events. Stress related to financial concerns can exacerbate feelings of anxiety and depression, leading to potentially detrimental decisions regarding money. However, by acknowledging the interconnectedness of financial health with mental and physical well-being, we can begin to prioritize self-forgiveness and take steps toward overall well-being.
To add another layer of complexity to this industry, a large percentage of the workforce consists of freelancers. Unlike traditional employment settings, freelancers lack the structured support systems typically provided by employers. Therefore, it becomes crucial to establish alternative avenues for support, even if it means exploring unconventional methods.
Setting Priorities
Now, having uncovered our money story and incorporated mindfulness into our decision-making, one might think the solution is straightforward. I wish it was! However, it’s essential to acknowledge that our brains are wired for instant gratification, making saving inherently challenging. And this doesn’t absolve us from the responsibility of saving. We must employ creative strategies to outsmart our brain’s desire for immediate rewards. To further complicate things, marketers exploit these tendencies, constantly targeting us with tempting offers and advertisements. Have you ever noticed how something you viewed on Amazon suddenly appears as a targeted ad on your social media feed? These tactics make it even more challenging to resist impulsive spending. Consider the allure of the “Buy Now” button. With a simple click of the mouse, that desired item is swiftly purchased—often taking no more than a mere second. In some cases, it may even arrive at your doorstep by the same afternoon.
Here are some strategies we can employ to motivate ourselves into prioritizing both our current and future financial well-being:
Delay Gratification: Introducing a pause before making a purchase allows the initial rush of dopamine to subside, making it easier to resist buying on a whim. Even waiting just 24 hours can significantly diminish the urge to spend impulsively.
Automate Savings: Before your paycheck arrives, set up automatic transfers to split between your checking and savings accounts. Take a moment to craft a spending and saving plan to determine the appropriate percentage. If the initial amount going into savings feels insufficient, start with what you can and adjust gradually. And whenever you receive a raise, bonus, or promotion, consider increasing your savings percentage by a percent or two.
Leverage Employer Benefits: If your employer offers a 401(k) plan with a matching contribution, take full advantage of this opportunity. It’s essentially free money that can significantly boost your retirement savings over time.
Address Competing Priorities: As you move forward, you might be strategizing to repay high-interest debts while also recognizing the importance of building an emergency fund and contributing to retirement savings. It’s common for us to juggle multiple financial priorities simultaneously. Even if your list differs, chances are you’re managing several financial goals with a limited income. If only that income stretched a bit further! While high-interest debt can weigh heavily on us, it’s crucial to ensure that we’re not only tackling debt repayment but also setting aside funds for emergencies. Otherwise, we risk relying on credit cards to cover unforeseen expenses, perpetuating the cycle of debt.
In conclusion, by understanding our Money Story, forgiving ourselves for past mistakes, aligning our spending with our values, and outsmarting our brain’s impulses, we can embark on a journey towards financial well-being. It’s not about achieving perfection, but rather making progress and fostering self-awareness. As the country duo Locash accurately puts it in one of their songs, “Who ain’t got a story to tell? And who ain’t made it through some hell?” This sentiment emphasizes that life’s challenges, including financial struggles, are universal, highlighting the resilience needed to overcome them.
You can reach Rachael Bronstein at rachael@lifesjam.com
