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

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The Mel Robbins Podcast 41 min 2 speakers transcribed
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Mel Robbins 0:00
Hey, it's your friend Mel, and welcome to the Mel Robbins Podcast. Are you afraid you'll never have enough money? Or worried that you'll never be able to buy a house or send your kids to college? Or maybe deep down, you're afraid that no matter how hard you work, you'll never get ahead? Or does staring at your bank account make you panic? Well, I know that fear because I've lived with it for a large part of my life. From maxing out credit cards in my 20s to spending my money on just the dumbest things to worrying that I would never be able to afford a house. And then when I finally did, I almost lost it. For years, I had no idea how to get out of debt or how to get out of this spiral and fear around money.
Mel Robbins 0:49
Working myself to exhaustion, multiple jobs, feeling like I would never, ever, ever climb out of the hole that I was in. If the fear of money is suffocating you, you're not alone. And if I can figure this out, so can you. I have changed my relationship with money. And today, bestselling author and leading financial expert Farnoosh Karabi is here to teach you how to face your fears and unlock the financial freedom that you deserve. This episode is your lifeline and guide to a completely different relationship with money. Whether you're struggling with debt or starting to build a little savings or you're already on the path to financial freedom, this is a conversation about money that you and everyone that you love needs to hear. Hey, it's Mel. I am so excited that you're here. It is always such an honor to spend time with you and to be together. And if you're brand new, welcome to the Mel Robbins Podcast family.
Mel Robbins 1:54
And thank you for choosing to listen to this podcast episode about money. And you know what that tells me? It tells me that you're the type of person that not only values money, but you value your time and you're interested in learning about ways that you can improve your life. I just love that. And I'm so excited that you're here today because you and I are going to dive into something that so many of us struggle with, but we don't talk about, and that's financial fear. Now, I know firsthand what it feels like to be afraid when it comes to money. I know what it looks like to look at your bank account and not know how the heck you're gonna make it to the next month. I know that gut-wrenching anxiety when you go to check your bank balance and you just hope that it won't be in the red. You may not know this about me, but there were days when my husband, Chris, and I were so terrified that we wouldn't be able to pay the bills or worse, that we were gonna lose everything. Just over a decade ago, we were on the brink of complete financial ruin. I was 41 years old.
Mel Robbins 3:20
$800,000. Now, I don't know about you, but when I thought about my life plan or I made a vision board, I never pasted up an image that said bankruptcy, $800,000 in debt. That's not exactly how I thought my life was going to turn out. But what ended up happening is that my husband had gone into the restaurant business and the first location was pretty successful. So like complete idiots, we poured our entire life savings, home equity line, maxed out credit cards into it. And boom, the business started to fail. And we were drowning in debt with no way out of sight. It felt like no matter how hard we tried, we couldn't dig out of the hole that we had put ourselves in. And that fear, the fear of losing everything became my constant companion.
Mel Robbins 4:15
Now, if you've ever had that fear, you know how crushing it is to not know how you're going to pay your bills. And I want you to know something. You're not alone. That fear has shaped how I approach money today. And if you're in that place, you can learn how to tap into that fear and change how you relate to money too. I mean, just talking about it, I can still feel the pit in my stomach. There was a time where I felt completely powerless over our finances. I mean, the debt was so freaking big. It felt like it felt impossible to get in front of it. I felt like I had lost control of my choices, my future, my family's well-being. And even after we started slowly, holy cow, it was painstaking. I'm not going to lie to you. It wasn't glamorous.

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