What's Really Hindering Your Financial Freedom | Mikey Manghum | TEDxUTulsa

Summary

In this insightful talk, the speaker emphasizes the importance of understanding one's relationship with money and the need to develop a clear purpose for wealth creation. They illustrate how a scarcity mindset can hinder financial growth and suggest evaluating past experiences with money to identify any negative patterns. The speaker shares their personal journey, highlighting how a deeper purpose can lead to effective financial strategies and the potential for a fulfilling financial legacy.

Takeaways

• 🔄 **Change in Perspective**: A simple change in perspective can lead to a profoundly different outcome.
• 📚 **Importance of Personal Narrative**: In any journey of healing or growth, understanding your story is crucial.
• 💰 **Wealth Building Methodology**: Just like in therapy, wealth building should start with understanding your financial narrative.
• 🏦 **Money Conversations**: The conversation around money during upbringing can significantly impact one's financial beliefs.
• 🚫 **Limiting Beliefs**: Common limiting beliefs about money can hinder financial growth.
• 🤔 **Financial Anxiety**: Many people struggle with financial anxiety due to unclear understanding and direction.
• 📈 **Financial Literacy**: A significant portion of the population lacks basic financial literacy.
• 💡 **Starting Point for Financial Planning**: The starting point for financial planning should be understanding where you are and where you want to go.
• 🌀 **Scarcity Mindset**: A scarcity mindset can be a hidden killer of financial dreams, causing stress and hindering long-term planning.
• 🌱 **Adapting Childhood Experiences**: Childhood financial experiences can shape adult financial behaviors, both positively and negatively.
• 📋 **Evaluating Financial Foundation**: Writing down experiences and feelings about financial terms can reveal the foundation of your financial mindset.
• 🎯 **Creating a Vision**: Having a clear purpose and vision for your wealth can provide meaningful direction and motivation.

Q & A

What is the significance of the hand motion activity described at the beginning of the script?

The hand motion activity is used as a metaphor for how a change in perspective can lead to a different outcome. It illustrates the importance of understanding one's viewpoint in any journey, including wealth building.

Why is understanding one's story important in the context of healing, restoration, or building resilience?

Understanding one's story is crucial as it provides the foundation for personal growth and change. It helps in identifying the narrative that has shaped one's life up to that point, which is essential for healing or building resilience.

What is the role of narrative in the process of wealth building according to the script?

The narrative plays a foundational role in wealth building by setting the stage for understanding one's relationship with money and shaping one's financial beliefs and behaviors.

What are some common limiting beliefs about money mentioned in the script?

Some common limiting beliefs include worrying about not having enough money, believing that debt is bad, and thinking that money is the root of all evil.

Why do people often struggle with money management despite having access to financial planning tools?

People struggle with money management because they may not have been taught about personal finances and often start with the wrong approach, lacking a clear understanding of their financial goals and the foundation on which to build their wealth.

What does the script suggest as the starting point for addressing personal financial issues?

The script suggests starting with understanding one's current relationship with money and then developing a true purpose for wealth.

What is the scarcity mindset and how does it affect financial decisions?

The scarcity mindset is a belief that there is not enough to go around, leading to fear, anxiety, and short-term, hasty decisions. It can prevent long-term planning and hinder the pursuit of financial goals like wealth, legacy, and community impact.

How can one identify if they have a scarcity mindset?

One can identify a scarcity mindset by reflecting on their childhood experiences with money, feelings towards financial terms, and major adult financial experiences, then evaluating whether these are mostly positive or negative.

Why is creating a vision and purpose for wealth important?

Creating a vision and purpose for wealth provides a meaningful and concrete goal that can hold one accountable and drive consistent financial planning, leading to financial freedom and the ability to live one's financial legacy.

How does the speaker in the script use their personal experience to illustrate the importance of a deeper 'why' in financial planning?

The speaker uses the birth of their child and the desire to provide a better life for them as a catalyst for reevaluating their financial goals. This deeper 'why' helped them connect with a purpose beyond just numerical objectives, leading to more effective financial strategies.

What is the final message the speaker wants to convey about wealth building?

The final message is to cultivate a healthy money mindset by understanding one's current relationship with money and developing a clear purpose for wealth, which will create an environment conducive to financial growth and the realization of a financial legacy.

Outlines

00:00

🔄 Perspective and Wealth Building

The speaker begins with an interactive activity to demonstrate how changing one's perspective can lead to different outcomes. They compare this concept to the process of healing and personal growth, emphasizing the importance of understanding one's personal narrative before diving into solutions. The speaker then transitions into the topic of wealth building, suggesting that people often neglect to understand their relationship with money before seeking financial advice or strategies. They propose questions to prompt reflection on one's upbringing and beliefs about money, and discuss common limiting beliefs and behaviors that hinder financial health. The speaker points out that despite increased access to financial tools, many people still struggle with money management due to a lack of financial literacy and clarity. They argue for the need to start with understanding one's current financial narrative and mindset before building wealth.

05:03

💰 Overcoming a Scarcity Mindset

The speaker delves into the concept of a scarcity mindset, which they identify as a significant obstacle to financial freedom. They explain how this mindset can lead to fear, anxiety, and short-sighted financial decisions. The scarcity mindset is described as a subconscious belief that resources are limited, which can hinder long-term planning and wealth creation. The speaker acknowledges that this mindset can affect anyone, regardless of their financial status. They suggest that early life experiences with money can shape this mindset and make it difficult to adopt wealth-building behaviors in adulthood. The speaker provides a method for identifying a scarcity mindset by reflecting on past experiences and emotions associated with financial terms and events. They emphasize the importance of understanding and addressing this mindset to create a solid foundation for wealth building.

10:07

🌟 Creating a Vision and Purpose for Wealth

The speaker discusses the importance of having a clear vision and purpose for one's wealth beyond just numerical goals. They argue that without a deeper 'why', it's difficult to maintain consistency and avoid the influence of others' financial behaviors. The speaker shares a personal story about becoming a parent and realizing the impact of their financial decisions on their child's future. This realization led them to connect their financial goals with a deeper purpose, which in turn made it easier to identify the necessary strategies and tools for their financial journey. The speaker concludes by encouraging the audience to cultivate a healthy money mindset and create an environment conducive to financial growth and wealth, ultimately living a fulfilling financial legacy.

Keywords

💡Perspective

Perspective refers to the way in which things are regarded or considered. In the video, the concept is introduced through a physical activity to illustrate how a change in perspective can lead to a different outcome. The speaker uses this idea to transition into the discussion of personal finance, suggesting that changing one's perspective on money can lead to better financial decisions and outcomes.

💡Healing

Healing is the process of recovering from physical, emotional, or psychological harm. The video uses healing as a metaphor for personal growth and financial restoration. The speaker suggests that understanding one's narrative or story is the starting point for healing, which is a crucial step in the journey towards financial health.

💡Narrative

A narrative is a story or account of events or experiences. In the context of the video, the speaker emphasizes the importance of understanding one's personal narrative with money as a foundation for financial planning. The narrative shapes one's beliefs and attitudes towards money, which in turn influences financial behavior.

💡Wealth Building

Wealth building refers to the process of accumulating assets and increasing one's net worth over time. The video discusses the importance of approaching wealth building with the same methodology used in therapy, starting with understanding one's story and narrative, and then applying strategies and tools to build wealth.

💡Limiting Beliefs

Limiting beliefs are fixed ideas or attitudes that hinder personal growth or achievement. The video mentions several common limiting beliefs about money, such as fearing that one will never have enough or that money is the root of all evil. These beliefs can impede financial progress and are identified as something to overcome in the process of wealth building.

💡Financial Literacy

Financial literacy is the knowledge and understanding of financial concepts and how to apply them. The video highlights the lack of financial literacy as a significant issue, with many Americans unable to answer basic financial questions. It suggests that improving financial literacy is essential for better money management.

💡Scarcity Mindset

A scarcity mindset is the belief that resources are limited and not enough to meet everyone's needs. The video identifies this mindset as a hidden killer of financial dreams, causing stress and leading to short-term, hasty decisions. The speaker argues that overcoming a scarcity mindset is necessary for long-term financial planning and growth.

💡Financial Anxiety

Financial anxiety refers to the stress or worry caused by concerns about money. The video cites a statistic that 77% of Americans have anxiety about their money, suggesting that this anxiety is widespread and can be a barrier to effective financial planning.

💡Purpose

Purpose in the context of the video refers to a clear and meaningful goal or objective for one's wealth. The speaker argues that having a purpose for wealth is more effective than simply setting numerical financial goals. A purpose provides a deeper 'why' that can motivate and guide financial decisions.

💡Legacy

Legacy in the video refers to the lasting impact or influence one leaves behind, often in the form of wealth or values passed down to future generations. The speaker suggests that considering the legacy one wants to create can help inform financial goals and decisions.

💡Money Mindset

Money mindset refers to one's attitudes, beliefs, and habits related to money. The video discusses the importance of cultivating a healthy money mindset as a foundation for financial success. It suggests that repairing financial wounds and building a positive money mindset are crucial steps in the wealth-building process.

Highlights

The importance of changing perspective to understand the impact on outcomes.

The necessity to understand one's personal narrative before starting a healing or wealth-building journey.

The common lack of clarity, confidence, and direction in financial planning among Americans.

The taboo nature of discussing money, as revealed by a study of over 2000 adults.

The scarcity of financial education despite increased access to financial planning tools.

Only one in three Americans have a financial plan, indicating a widespread lack of preparedness.

A FINRA study showing only 40% could answer basic financial literacy questions, highlighting a knowledge gap.

77% of Americans experience anxiety about their money, pointing to a significant societal issue.

The potential disconnect between access to financial tools and the persistence of financial anxiety.

The idea that financial planning often starts in the wrong place, lacking a clear destination or foundation.

The scarcity mindset as a hidden killer of financial dreams, causing stress and hindering financial freedom.

How a scarcity mindset leads to short-term decisions and makes long-term planning difficult.

The subtle nature of a scarcity mindset and its intertwining with beliefs, logic, and habits.

The impact of childhood financial experiences on adult financial behaviors.

The process of identifying and evaluating one's financial foundation through writing down experiences and feelings.

The significance of creating a vision and purpose for wealth beyond just numerical financial goals.

The personal story of the speaker connecting with a deeper 'why' for financial goals, leading to clarity and strategy.

The call to action for cultivating a healthy money mindset to support financial growth and wealth.

Transcripts

Transcriber: Clary Chow Reviewer: Emma Gon

I'm going to start with a quick activity that a mentor of mine once showed me.

So if you would, take your right hand and raise it in the air.

And with your right index finger,

I want you to look up at the ceiling

and all you’re gonna do, it’s very simple,

is make a clockwise motion on the ceiling.

Now, I know we’re in a digital age, so maybe just flash back to remembering

that hand moving around. 12, 1, 2, 3, right, okay, we’ve got it down. Great.

And all you’re going to do is slowly put a bend in your elbow.

You can look at me for reference. I've done it many times.

And slowly make sure that your fingers come down to about for head level,

then nose level, chin level, chest level. Now look down at your finger.

You go in anti-clockwise.

I can tell you what’s happened.

All that’s changed is your perspective.

But with a change in perspective,

it can lead to a profoundly different outcome.

In any journey of healing,

restoration or the creation of a more resilient you,

the starting point is understanding your story to this point.

Take therapy, for example.

We don't dive straight into reprocessing, reframing, coping mechanisms.

We start with your story and the narrative

that has made you you to this day.

My posit to you is that we’re doing ourselves

a great disservice by not following that same methodology

and strategy in our wealth building.

Here’s a few questions for you.

What was the conversation like around money growing up for you?

Was it positive? Was it negative?

Was it non existent?

Have you ever struggled with any of these limiting beliefs?

Worrying that you don't have enough money or that it's all going to run out?

Debt is bad! Money is the root of all evil!

Have you ever been guilty of any of the following actions?

Spending all your money or more?

Because you worked really hard and you deserve it.

Taking a job that you didn’t really want because of money.

Stopped living life and doing the things

that truly bring you joy because of money.

If you have, you’re not alone.

Studies indicate that Americans in general lack clarity,

confidence and direction around their finances.

A study of over 2000 adults revealed that more than 50% said

that talking with anyone else about money was taboo.

I’ve found for my own industry experience that there’s a lot of people out there

that were just not taught much about personal finances,

regardless of their level of wealth and their background.

Now, this is all in a time where, thanks to technology,

we have more access to good financial planning

and wise money management than ever before.

Not to mention the set up of investment accounts

or savings automation can be done at just the click of a few buttons,

but we still have these issues around our personal finances.

Only 1 in 3 Americans have a plan for their money.

A FINRA study found that only 40% of the people polled

could answer four out of six basic financial literacy questions.

Here’s one.

77% of Americans have anxiety about their money.

So what’s the deal?

Where's the disconnect? We have more access than ever before,

but maybe we're as anxious as ever.

Could it be that we’re actually starting in the wrong place

when it comes to financial planning?

We’re attempting to build and create with no real understanding

of where it is we’re trying to go

and truly no understanding of the foundation

that we’re trying to build upon.

Let’s say someone pulled out an IKEA box of contents on the floor

and gave you no instructions, no parts list,

no picture of what it's supposed to look like in the end.

Who in their right mind is taking on that challenge? I'm not.

But it's often what we see happening with people's personal finances,

and it's inefficient, to say the least.

The solution to the conundrum we face with our personal wealth

doesn’t lie in more hacks, tips, social media guru Insights.

The real solution comes from understanding

our current relationship with money

and then developing a true purpose for our wealth.

Now, that may sound simple,

but those components truly become

the corners and the edges of the jigsaw puzzle.

All the other strategies, solutions and products

are simply pieces that fit within that framework.

So let's talk about those two things.

Let's start with the current relationship with money.

Now, we don’t have time, unfortunately, to unpack all of the things

that could be informing your current financial narrative.

But I want to identify one thing that typically causes more problems

than most with people's personal finances.

This is the thing that clashes with the idea of financial freedom

and causes stress and unnecessary concern

across all the major important areas of life.

We may have goals of affluence, abundance,

maybe even the creation of generational wealth.

But the hidden killer of financial dreams is a scarcity mindset.

Now a scarcity mindset brings with it an overall survival methodology.

Essentially what it says is there’s not enough pie to go round.

If these five people are doing well, I must be the one to suffer.

Now, a scarcity mindset generally causes some fear and some anxiety,

which statistics have proven, but also leads to short term, focused,

hasty decisions around money.

It makes it really hard to plan too far ahead

or look too far out into the future,

which is exactly what we need to do

if we value things like wealth, legacy, community and familial impact.

The other thing about a scarcity mindset is it’s subtle,

because it intertwines itself with your beliefs,

your logic and your habits in your subconscious mind,

and it can do that regardless of your level of wealth.

It doesn’t allow a sense of clarity, peace and direction to coexist with it.

Now, this is a major issue because that could mean for you

the very thing that you’re trying to create with money

isn’t capable of growing and thriving in the current environment.

Now, when we're young, our brains job is to adapt to our immediate surroundings

by creating modes of operation that help us be successful, to exist,

to do well in our current context.

As we grow, those adaptive strategies in adulthood can become, well, maladaptive.

If you’re in a situation growing up where money was tight

and there was the need to hoard, well, now in adulthood,

it’s hard to do things like invest in yourself or in external assets,

which is exactly what needs to happen if we're ever going to have

the opportunity to experience compounded or exponential growth.

On the other hand, if you saw frivolous spending growing up,

it may be hard to get that under control in your adult life

and prioritize something as crucial as saving.

Now, I want to give you a little bit of grace, because when we're young,

our conscious mind isn't fully formed.

So a lot of the input on the big things of life, finance is included,

go straight into what becomes logic, belief and habit for us as we grow.

So how do we know if we're dealing with

a little bit of scarcity mindset in our world?

Again, we don’t have the time to unpack it all,

but here’s a few things to consider to evaluate

the financial foundation that you may have right now.

The first is to write down

all of your experiences and childhood around money.

Then I want you to write down how you feel about major financial terms

investing, saving, insurance, debt.

Then identify any major experiences you had around money in adulthood.

Then what you’re going to do with your likely extensive list at this point

is go back through and put a positive or a negative sign next to each one of those,

depending on whether your interpretation

of those experiences was positive or negative.

Hint: if it’s mostly negative, there’s probably a little bit of scarcity mindset

we’ve got to deal with.

But that activity in and of itself is going to reveal

so much about that foundation

that we’re going to start to try and build from.

Now, once we have the foundation identified,

it's time to move to creating a vision and a purpose for our money.

Andy Stanley says it best, everyone gets somewhere in life.

A few people get their own purpose. Those are the ones with vision.

I hear people with goals of affluence and abundance

and they say numerical objective financial goals like Mikey,

I want to make six figures. Mikey, I want to make seven figures.

I want to have three, four, five, six, seven streams of passive income.

I want to have this many thousands or millions tucked away in savings.

We can tell you a secret.

If that’s where you stop, you just stop short.

You’re 1 or 2 steps away from really creating consistency

in whatever your financial plan is.

You’re 1 or 2 steps away from the freedom

of not having to look around and seeing

what everyone else is doing with their money.

When you can clearly articulate a purpose and a goal for your wealth

and emotionally engage with what that means for you,

now you have something meaningful

and concrete that will hold you accountable,

even when the instant gratification version of ourselves doesn’t feel like it.

And I want to bring that to life

a little bit in terms of what that looked like for me,

because this all sounds well and good and it all sounds simple,

but what does it look like to really understand the narrative

and then to build a purpose and a vision?

In summer of 2020, I came home to my now six month old, oldest son.

And if, you know, six months old,

start to smile and engage and giggle at you and make you feel really good.

And I realized holding him in a studio apartment

that there was no business having three people in.

That now my why was deeper. I’ve always had goals.

Numerical objective financial goals of what I wanted to achieve.

But in that moment, I realized that the inputs that I gave to him,

they’re going to impact his logic,

his belief in his habits. across all the major areas of life,

but definitely with finances, too.

And now my goals were tied to a deeper purpose

because I wanted to be able to have the time, freedom to see that smile,

that giggle and that response any time I could.

I didn’t want to miss a game, a performance, a recital, any of that.

And the moment I connected with a deeper why

the solutions, the strategies and the products that were needed

for my financial journey started to reveal themselves,

We each have an opportunity to repair the financial wounds in our money mindset

and build something that we can truly take pride in.

Let’s do the work of cultivating the soil in our money mindset

so that as we are sowing financial seed,

we’ve already created an environment that is vital for growth and for wealth.

That I believe it’s not only how we live,

but truly get to live our financial legacy.

Thank you. (Applause)