Frugal Friends Podcast - Episode 473: Become a Better Financial Decision-Maker with Jessica Morehouse

Hosts: Jen Smith & Jill Sirianni
Guest: Jessica Morehouse
Release Date: January 3, 2025
Knowledge Cutoff: October 2023

Introduction

In Episode 473 of the Frugal Friends Podcast, hosts Jen Smith and Jill Sirianni engage in a profound conversation with financial expert Jessica Morehouse. The episode delves into the intricacies of financial decision-making, exploring how our internal narratives, upbringing, and past traumas influence our money choices. Jessica, an accredited financial counselor in Canada and author of “Everything but Money: The Hidden Barriers Between You and Financial Freedom,” provides listeners with actionable insights to enhance their financial autonomy and well-being.

Understanding Financial Decision-Making

[07:02] Jen Smith:
“One thing is how we speak to ourselves about money. We have an internal dialogue specifically about money, and most of the time it's negative unless you're in an amazing financial space.”

Jessica emphasizes the importance of internal dialogue in shaping financial behaviors. She explains that our subconscious conversations about money—often negative—can significantly impact everyday financial decisions, from choosing to buy organic products to deciding whether to invest or stay in a secure job.

Notable Quote:
[07:43] Jessica Morehouse:
"How we feel about money drives our decisions, whether it's about daily purchases or long-term financial planning."

The Role of Upbringing and Trauma

Jessica delves into how our upbringing and past traumas can create hidden barriers to making sound financial decisions. She discusses the concept of generational trauma and epigenetic inheritance, illustrating how fears and behaviors around money can be passed down through generations.

[25:48] Jessica Morehouse:
"Our upbringing lays the foundation for our financial mindset. Whether you grew up in poverty or wealth, those early experiences shape your financial decisions as an adult."

She shares personal anecdotes, such as her grandfather's bankruptcy, which instilled in her a deep-seated fear of financial loss. Jessica underscores the necessity of recognizing and addressing these internal barriers to break free from unproductive financial patterns.

Notable Quote:
[30:59] Jill Sirianni:
"It impacts how you spend money because it's a lack of self-esteem and self-confidence from that."

Good vs. Poor Financial Decisions

A significant portion of the discussion focuses on redefining financial decisions as neither inherently good nor bad but rather as choices that can either advance or hinder one's financial goals depending on the context.

[17:20] Jen Smith:
"Good financial decisions move you forward, while poor ones may limit your future potential."

Jessica stresses the importance of contextualizing decisions based on one's current financial state and long-term objectives. She encourages listeners to evaluate their decisions not by moral standards but by their effectiveness in achieving personal financial freedom.

Notable Quote:
[19:17] Jill Sirianni:
"We often make decisions thinking they're bad, but they are simply pivots in different directions."

Practical Steps for Better Financial Decisions

Jessica provides a structured approach for listeners to improve their financial decision-making:

1. Identify Your Money Story:
   Understanding the narratives and beliefs about money that have been ingrained through upbringing and experiences.

2. Recognize and Address Trauma:
   Acknowledging past traumas, whether directly related to finances or not, and seeking professional help to heal.

3. Assess External Barriers:
   Recognizing societal injustices and privileges that may affect financial opportunities and striving to overcome them.

4. Build Financial Foundations:
   Establishing a clear financial foundation by setting personal goals and aligning them with values.

5. Implement Incremental Changes:
   Making small, manageable changes rather than attempting large, sweeping financial overhauls.

[33:47] Jen Smith:
"The good thing about my book is that it includes exercises to help you identify and work through your financial barriers piece by piece."

Notable Quote:
[33:31] Jill Sirianni:
"It's these small incremental changes that will lead to big financial results and significant personal growth over time."

Impact of Social Injustice on Financial Decisions

Jessica elaborates on how social injustices such as racism, sexism, and other forms of discrimination can impede financial progress. She highlights the systemic barriers that disproportionately affect marginalized groups and emphasizes the need for collective action and advocacy to foster equitable financial opportunities.

[42:55] Jen Smith:
"Discrimination often creates financial barriers that are beyond individual control, making it harder for affected individuals to achieve financial milestones."

Notable Quote:
[43:00] Jessica Morehouse:
"No matter how hard you work, systemic issues like discrimination can still hold you back. It's crucial to recognize and address these external challenges while working on your personal financial strategies."

Personal Reflections and Takeaways

Towards the end of the episode, both hosts and Jessica share personal reflections on their financial journeys. They discuss the importance of aligning financial decisions with personal happiness and fulfillment rather than purely monetary gains.

[39:17] Jason Alexander:
"Our financial decisions are rarely about math; it's much more about who we are as individuals."

Jessica reflects on her own experiences, noting how her obsession with money stemmed from childhood insecurities and how she has worked to shift her focus towards activities and relationships that bring genuine joy.

Notable Quote:
[60:31] Jill Sirianni:
"Every decision is just a pivot slightly in one direction. It's never something that's going to ruin you."

Conclusion

The episode concludes with a reaffirmation of the key themes: the significance of understanding one's internal financial narratives, the impact of upbringing and trauma, the influence of societal structures, and the power of incremental, intentional financial changes. Jessica encourages listeners to engage in introspection, seek professional guidance when needed, and adopt a compassionate approach towards their financial journeys.

[62:01] Jill Sirianni:
"It's these small incremental changes, coupled with inner work, that will transform your financial future by this time next year."

Final Notable Quote:
[63:00] Jason Alexander:
"Understanding ourselves is crucial, and having perspectives like Jessica's helps reinforce how important this introspection truly is."

Additional Resources

• Book: Everything but Money: The Hidden Barriers Between You and Financial Freedom by Jessica Morehouse
  • Available At: Amazon, Barnes & Noble, Bookshop.org, and local bookstores
  • More Information: jessicamoorhouse.com
  • Social Media: @jessicamoorhouse

Notable Quotes with Timestamps

1. [07:43] Jessica Morehouse:
   "How we feel about money drives our decisions, whether it's about daily purchases or long-term financial planning."

2. [25:48] Jessica Morehouse:
   "Our upbringing lays the foundation for our financial mindset. Whether you grew up in poverty or wealth, those early experiences shape your financial decisions as an adult."

3. [33:31] Jill Sirianni:
   "It's these small incremental changes that will lead to big financial results and significant personal growth over time."

4. [42:55] Jen Smith:
   "Discrimination often creates financial barriers that are beyond individual control, making it harder for affected individuals to achieve financial milestones."

5. [60:31] Jill Sirianni:
   "Every decision is just a pivot slightly in one direction. It's never something that's going to ruin you."

Final Thoughts

Episode 473 of the Frugal Friends Podcast offers a comprehensive exploration of the psychological and societal factors influencing financial decisions. Jessica Morehouse's insights provide listeners with a deeper understanding of their financial behaviors and practical steps to attain financial freedom. By addressing both internal narratives and external barriers, this episode serves as a valuable resource for anyone seeking to improve their financial decision-making and achieve a more fulfilling financial life.