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The #1 Money Rule to Live By: Understand The Psychology of Money

The Mel Robbins Podcast

Published: Thu Nov 14 2024

Today, you’ll learn the #1 money rule to live by to achieve financial success. You’ll also get the secret to stopping fear and anxiety around money for good. In this episode, financial expert Farnoosh Torabi will uncover major money myths that leave you feeling trapped and the steps you need to take to get good with money and build wealth. Whether you want to start saving, make more, or get out of debt, this episode will lay the foundation for greater financial success. This is an open and honest episode that will help you transform your relationship with money, and Mel candidly shares about her experience with financial fear after she found herself $800,000 in debt. For more resources related to this episode, click here for the podcast episode page. If you want more content related to money and finances, listen to this episode next: 5 Rules of Money: How to Make It, Save It, & Be Smarter About It Connect with Mel: Watch the episodes on YouTube Get Mel’s new book, The ...

Summary

Podcast Summary: The Mel Robbins Podcast – "The #1 Money Rule to Live By: Understand The Psychology of Money"

In this enlightening episode of The Mel Robbins Podcast, host Mel Robbins delves deep into the intricate relationship between individuals and money, exploring the pervasive fears that hinder financial well-being. Joined by esteemed financial expert Farnoosh Turabi, the conversation unpacks the psychology of money, offering listeners actionable strategies to transform their financial fears into motivating forces for change.

1. Introduction: Confronting Financial Fear

Mel Robbins opens the episode by candidly sharing her personal struggles with money. From grappling with substantial debt in her twenties to the anxiety of maintaining financial stability, Mel sets the stage by acknowledging that fear surrounding money is a universal experience. She emphasizes that understanding and addressing these fears is crucial for achieving financial freedom.

Notable Quote:
"If the fear of money is suffocating you, you're not alone. And if I can figure this out, so can you." – Mel Robbins [00:00]

2. Guest Introduction: Farnoosh Turabi

Farnoosh Turabi, a renowned financial advisor and author, joins Mel to provide expert insights into the emotional underpinnings of financial fears. With over two decades of experience, Farnoosh has dedicated her career to helping individuals navigate their financial anxieties and build a secure financial future.

Notable Quote:
"Fear can be a tool in your life." – Farnoosh Turabi [10:12]

3. Understanding Financial Fears

The discussion begins by identifying the myriad fears people associate with money. Mel lists common anxieties, including the fear of never having enough, losing what one has, making poor investment decisions, and the overwhelming worry of not being able to provide for one's family.

Notable Quote:
"Money generates fear naturally because it's a limited resource." – Farnoosh Turabi [12:58]

4. The Five Top Financial Fears

Farnoosh outlines the top five fears related to money, providing a comprehensive framework for listeners to recognize and address their own anxieties:

  1. Fear of Not Having Enough: Concerns about meeting basic needs amidst rising costs.
  2. Fear of Losing What You Have: Anxiety over potential financial losses, such as job loss or poor investments.
  3. Fear of Wanting Too Much: The intimidation of aspiring for greater financial success, especially prevalent among women.
  4. Fear of Lack of Financial Literacy: Worries stemming from inadequate knowledge about managing finances.
  5. Fear of Dying Without a Financial Legacy: Concerns about not leaving behind assets for the next generation.

Notable Quote:
"Gen millennials, Gen Y, they're the ones most afraid of running out of money." – Farnoosh Turabi [23:11]

5. Money as a Tool and Power

The conversation shifts to redefining money not just as a resource but as a source of power and autonomy. Mel emphasizes that having control over one’s finances translates to greater personal freedom and the ability to make independent life choices.

Notable Quote:
"Money is power. When you have your own money, you have power over your decisions." – Mel Robbins [16:28]

Farnoosh concurs, highlighting the importance of financial autonomy, especially for women, and how it fosters confidence and security.

Notable Quote:
"Financial independence is your right. Your world opens up when you have it." – Farnoosh Turabi [17:52]

6. Impact of Financial Fears on Relationships

Mel and Farnoosh explore how financial fears can strain personal relationships, particularly between partners. Disparities in financial anxieties can lead to conflicts over budgeting, spending, and financial priorities.

Notable Quote:
"Before you get into the nitty gritty of your finances, you have to talk about how you grew up with money." – Farnoosh Turabi [26:41]

They advocate for open communication about each partner's financial upbringing and fears to foster understanding and cooperative financial planning.

7. Reframing and Leveraging Fear

A pivotal part of the discussion focuses on transforming fear from a paralyzing emotion into a catalyst for proactive financial management. Farnoosh advises listeners to engage with their fears by tracing their origins and acknowledging their validity.

Notable Quote:
"Fear can be your friend. It’s an opportunity to listen to it and unpack it." – Farnoosh Turabi [43:02]

8. Practical Strategies to Overcome Financial Fear

Farnoosh introduces actionable steps to address financial fears:

  • Trace the Fear's Origin: Understand where your fear originates, whether from personal experiences or inherited anxieties.

  • Imagining Worst-Case Scenarios: Visualize potential financial crises to prepare and develop contingency plans, transforming fear into practical action.

    Notable Quote:
    "Imagine losing it all—what would you do? This is your roadmap, your plan of action." – Farnoosh Turabi [41:46]

  • Inventory Achievements and Assets: Recognize and build upon existing financial strengths and accomplishments to bolster confidence.

9. Embracing and Accepting Financial Fear

In their concluding remarks, Mel and Farnoosh reiterate the importance of accepting financial fear as a natural and informative part of one's financial journey. By embracing fear, individuals can better align their financial actions with their values and long-term goals.

Notable Quote:
"When you can accept and appreciate your financial fear, it makes you more motivated and excited to handle the nitty-gritty of your money." – Farnoosh Turabi [43:02]

Mel reinforces the episode's core message, encouraging listeners to believe in their ability to transform their financial lives by addressing their fears head-on.

Notable Quote:
"Address the fear, and you'll actually do what you need to do and address it." – Mel Robbins [44:25]

Conclusion: A Path to Financial Empowerment

This episode serves as a comprehensive guide for anyone grappling with financial fears. By combining personal anecdotes with expert advice, Mel Robbins and Farnoosh Turabi offer a roadmap to understanding and overcoming the psychological barriers that impede financial success. Listeners are empowered to view fear not as a hindrance but as a driving force towards achieving financial autonomy and building a secure future.

Resources Mentioned:

Tune In Next Time: Stay tuned to The Mel Robbins Podcast for more insightful discussions aimed at transforming your life through practical strategies and motivational conversations. New episodes are released every Monday and Thursday.

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