What’s your first money memory? How much are you ACTUALLY saving each year? Where do you have a hard time using your money?
These kinds of financial questions rarely come up in conversation, but they are critical to ask, consider, and consider what your answers mean for your money.
Discover how your earliest money memories (often from ages 3-7) are still running your financial decision-making today, why most people can’t answer how much they’re really saving, and how to build a money management system that works with your emotions instead of against them. Eric and Kali also share their own money memories and reveal what percentage of their income they save each year.
Whether you’re struggling to spend, save, invest, or give, this episode will help you uncover the hidden beliefs and patterns influencing your financial life—and give you the clarity to make better decisions aligned with what truly matters to you.
KEY TAKEAWAYS
1. Early experiences around money shape your financial behavior throughout your life.
Most people’s money beliefs are formed between ages 3-7 and continue to unconsciously drive financial decisions decades later. Asking about your first money memory is a starting point to uncovering some deeper drivers that may influence the decisions you make without you realizing. It’s not about judging these memories or trying to change them. It’s simply about bringing awareness to them, so you can be more intentional (versus reactive or reflexive) with your choices moving forward.
2. Track your savings rate, not just dollars saved.
A lot of people ask “how much should I save?” Very few people know precisely how much they save every year and an even smaller amount calibrate that number to their income. By setting your target as a percentage of income versus dollar amount, you can keep your long-term goals on track and always relative to the money you made in a particular year.
3. Focus on what you can control.
Your savings rate is within your control; market returns are not. Consistent savers outperform those chasing investment “moonshots”
4. Build an intentional money management system.
Create objective processes and structures first, then layer in emotions as choices rather than letting emotions lead your decisions. We can’t let spreadsheet math dominate the decision-making, but we do need to get grounded in financial reality first. Having solid frameworks can help you play and provide room for error without derailing your entire plan.
5. The signal will always be subjective.
It’s good advice to “find the signal in the noise,” but the challenge is there are many valid signals. Which one to tune into? To determine the frequency that’s best for you, start by defining your values and priorities. That will help you narrow down the potential options to ones that actually align with what you’re trying to accomplish.
Ready to create, use, and enjoy money for life? Request a complimentary consultation with us at BYH and discover how to optimize your investments, reduce your tax burden, and grow your wealth: https://beyondyourhammock.com/schedule