Podcast Summary: How to Money - "Cultivating a Wealthy Mindset with Shang Saavedra #956"
Release Date: March 12, 2025
Introduction
In episode #956 of How to Money, hosts Joel and Matt engage in an insightful conversation with financial coach and author Shang Saavedra. Shang, the founder of Save My Sense and author of the recently published book Wealth is a Mindset, shares her journey to financial independence by the age of 31 and delves deep into the interplay between mental health and personal finance.
Guest Background
Shang Saavedra brings a unique blend of financial acumen and personal experience to the table. With a Harvard economics degree and a successful career in management consulting, Shang simultaneously nurtured her passion for photography, which played a pivotal role in her wealth-building strategy. Her holistic approach emphasizes not just financial goals but also overall life satisfaction and mental well-being.
Key Discussions
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Achieving Financial Independence Early
Shang discusses her disciplined approach to saving and investing. By not spending a dime from her photography business revenues and reinvesting them, she was able to expedite her path to financial freedom.
"I didn't spend a cent from that business, just invested everything from it." [06:14]
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Frugality and Resourcefulness
The conversation highlights Shang's stringent budgeting practices. From living in a rent-stabilized apartment to avoiding car ownership, Shang and her husband implemented significant cost-saving measures to maximize their savings rate.
"We got into a rent stabilized apartment which is clutch because your rent doesn't really go up, but it's below market rent." [16:42]
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Balancing Financial Goals with Personal Life
Shang emphasizes the importance of aligning financial strategies with life goals. She and her husband chose to live off a single income to ensure financial security, especially considering potential future family responsibilities.
"If you become a mother to a young child, it's going to affect your career, it's going to affect your ability to really push that career." [12:53]
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Mental Health and Money
A significant portion of the discussion revolves around the connection between financial struggles and mental health. Shang posits that money problems often stem from deeper psychological issues such as depression, anxiety, or unresolved trauma.
"If you feel like you're struggling with money, it's indicative of a deeper issue that is usually not related to money at all and everything to do with your mental health." [35:49]
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Raising Financially Responsible Children
Shang shares her approach to parenting, focusing on instilling values of hard work and frugality in her children. By making household chores visible and avoiding outsourcing, she aims to teach her children the value of effort and responsibility.
"We actually made a conscious choice to make household work very visible from an early age so that our children understand there's some things that you just have to do in order for life to happen." [48:04]
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Challenging the American Dream
Addressing skepticism around the attainability of the American Dream, Shang asserts that wealth is a "coded" concept that individuals must actively decode and work towards, irrespective of their starting point.
"Wealth is coded, and it's your job to break the code." [50:06]
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Faith and Financial Responsibility
Shang discusses how her faith informs her financial decisions. Viewing herself and her husband as "God's portfolio managers," she emphasizes responsible investment and charitable giving as core principles.
"We believe that we are God's portfolio managers. He chose to give us some amount of income, some amount of wealth, some amount of resources. And it is our job to give to God the greatest return." [52:17]
Notable Quotes
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Shang Saavedra on Financial Struggles and Mental Health:
"If you feel like you're struggling with money, it's indicative of a deeper issue that is usually not related to money at all and everything to do with your mental health." [35:49]
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Shang on Aligning Financial Goals with Personal Freedom:
"Joy, that freedom is not going to come from a career. It's not going to come from fancy food and nice clothing. It's truly the freedom to do whatever the heck you want to do." [21:46]
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Shang on Breaking the Wealth Code:
"Wealth is coded, and it's your job to break the code." [50:06]
Conclusions and Takeaways
Shang Saavedra's story is a testament to the power of disciplined financial planning intertwined with personal well-being. Key takeaways from the episode include:
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Holistic Financial Planning: Financial independence is not merely about accumulating wealth but aligning it with personal and familial life goals.
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Frugality as a Lifestyle: Embracing frugality through practical measures can significantly enhance one's savings rate without compromising essential life experiences.
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Mental Health Matters: Financial struggles often have deeper psychological roots, and addressing mental health is crucial for sustainable financial well-being.
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Educating the Next Generation: Instilling financial responsibility and work ethic in children from a young age prepares them for future financial independence and resilience.
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Faith-Informed Finances: Integrating personal beliefs and values can guide responsible financial decisions and charitable endeavors.
Final Thoughts
Joel and Matt conclude the episode by reflecting on Shang's resourcefulness and intentional financial strategies. They emphasize the importance of cultivating a wealthy mindset, not just through saving and investing but also through fostering resilience and purposeful living.
Where to Learn More
Listeners interested in Shang Saavedra's work can visit her Instagram, YouTube, or her website to explore her book Wealth is a Mindset and access her financial coaching services.