Episode 126: What is a healthy relationship with money? How can you build a healthy relationship with money? Deanna Broaddus of Recovering Women Wealth joins to help you fix your money mindset.
Becoming Debt Free with Deanna Broaddus
Deanna Broaddus grew up in an upper-middle-class household with healthy money habits. However, Deanna had the mindset that money equated freedom and struggled with financial responsibility from the start. By the time Deanna hit rock bottom with addiction, she was over six figures in debt.
Four years into her addiction recovery journey, Deanna was ready to tackle her debt. She did Dave Ramsey’s Financial Peace University and started with the debt snowball, saving money, and found ways to generate income.
During her hard time, Deanna found humility and moved in with her parents at 43 to focus on paying her debt. She was able to pay off the rest of her debt in December 2017 and started the year 2018 as a new investor.
Now, Deanna helps other women in recovery learn and improve their financial literacy.
Deanna’s experience is that addiction recovery and financial recovery have a lot of parallels. The key feeling is not wanting to pay for things that happened in the past, finding ways to enjoy where you are, and learning to surrender yourself to asking for help.
What is a Healthy Relationship with Money?
Having a healthy relationship with your money is about spending on things that bring your life value rather than giving into impulses. Meanwhile, building savings and ensuring you are paying off your credit cards every month are key habits that maintain your healthy mindset.
How to Build a Healthy Relationship with Money
Building a healthy relationship with money takes a long time, and it isn’t always a linear journey. The issues we face with money are often caused by deeper mindset issues and problems from the past that we haven’t processed.
Here are some helpful steps for building a healthy relationship with money.
Identify Root Issues
Think about the things in your life that could be tied to your money issues. Past trauma and unresolved conflict often manifest in irresponsible spending or addiction. This behavior serves as a band-aid for unreconciled hurt.
Expose the wound, dive in, and work on healing the core issues before moving onto managing your debt.
Learn Financial Literacy
Not everyone’s spending habits stem from trauma; some people didn’t have financial literacy modeled to them at an early age. If you come from a family with a history of money problems, taking time to learn more about personal finance, taking courses, or working with an advisor can help.
Get an Accountability Partner
It’s important to have someone cheering you on while you work toward becoming debt-free. Find someone to stand in your corner, whether it’s a friend, partner, coach or advisor.
Build a Budget
Building a budget will provide you with a framework for healthy spending. Take some time to look at where your money is going and make some adjustments to fit your means.
Create a Debt Pay-Off Plan
Your budget and debt pay-off plan work in tandem. The budget plan ensures you have enough money to put toward your debt, and the debt pay-off plan creates an objective.
Use automation to pay your bills, so that everything is paid for the moment your money comes into the bank. Create automation for tithing and saving as well.
Learn to Give
It’s never to early to start giving to others. Even donating $20 per month to a charity or cause that matters to you creates a positive upward spiral with budgeting and saving.