Unlocking Financial Freedom with Scarlette Joyce Rojas
Overview
In this episode we chat with financial expert Scarlette Joyce Rojas to delve into generational wealth, and the psychology of spending. We discuss the difference between being rich and being wealthy, and practical steps for those living paycheck to paycheck to turn their financial situation around. We also talk about the role of faith in managing finances, strategies for building generational wealth, and how to get started with investing, regardless of the amount!
What You Will Learn
0:00 | Intro
5:10 | The Psychological Aspects of Wealth and Financial Freedom
10:24 | Understanding Emotional Spending and Financial Harmony in Relationships
18:55 | Overcoming Financial Fears and Building Generational Wealth
22:51 | Tracking Expenses to Save Money and Build Wealth
26:12 | Investing Basics: Index Funds, Savings, and Financial Buckets
33:19 | Faith and Finances: Spirituality's Impact on Wealth Management
39:45 | Steps to Financial Freedom and Building Generational Wealth
Resources
Scarlette Joyce Rojas - https://www.instagram.com/moneymindsetmami/
Book - https://a.co/d/2zunOue
Connect with us!
To watch this episode on video, subscribe to Vanna’s YouTube Channel
Disclaimer: This podcast is intended for educational purposes only and is not to be taken as medical advice.
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Financial Freedom for Moms: Unlocking Wealth through Habit, Mindset, and Faith
Key Takeaways
Understanding the distinction between being rich and being wealthy focuses more on freedom than just the amount of money.
Financial planning, budgeting, and mindful spending are essential initial steps towards achieving financial independence.
Integrating faith and spirituality can offer powerful guidance and a sense of purpose in financial decision-making.
Navigating the realm of personal finance can seem daunting, especially for busy moms balancing work, children, and household responsibilities. However, understanding and mastering money isn't just about accumulating wealth—it's about creating freedom and security for your family. In this insightful discussion from the Mom Guilt podcast, Vanna Padilla and financial advisor Scarlette Joyce Rojas explore the intricate relationship between financial wisdom, personal mindset, and faith. This deep dive will help you transform your approach to money management, regardless of your starting point.
The Difference Between Being Rich and Being Wealthy
Wealth as Freedom
"When we get deeper into the real why... it's that freedom that people seek." - Scarlette Joyce Rojas
The conversation begins by distinguishing the concepts of being rich versus being wealthy. According to Rojas, the essence of wealth is less about the sheer amount of money one possesses and more about the freedom it affords. This freedom includes the ability to make autonomous decisions and live a lifestyle aligned with one's values and goals.
Key insights from this section highlight that financial freedom allows individuals to spend more time with family, travel, and cultivate meaningful experiences. These benefits point to a life designed around personal fulfillment rather than merely financial gain. This notion pushes listeners to reconsider their financial goals beyond numerical targets.
Financial Planning and Budgeting
"You can do one of three things: make more, spend less, or both." - Scarlette Joyce Rojas
A critical first step towards achieving financial independence is meticulous budgeting. Rojas emphasizes that meticulous tracking of expenses can reveal surprising areas for potential savings. For instance, Vanna shared how her family discovered they spent $600 a month on seemingly inconsequential trips to the gas station and coffee shops. By identifying and eliminating these expenditures, they freed up significant funds that could go towards savings or investments.
Creating a budget isn't about austerity, but about aligning your spending with your intentions. The idea is to reallocate money from less meaningful expenses to areas that offer genuine satisfaction and security. The role of budgeting here is imperative in transitioning from paycheck-to-paycheck living to a state of financial stability.
Emotional Spending and Financial Psychology
Understanding Lifestyle Creep
"As you make more, you spend more... Lifestyle creep." - Scarlette Joyce Rojas
The next significant theme is 'lifestyle creep,' where increased earnings are quickly matched by increased spending, leaving little room for savings. This phenomenon often traps individuals into a cycle where they never quite escape financial insecurity, no matter how much they earn.
Rojas also introduces the concept of emotional spending, deeply rooted in personal psychology. She discusses how individuals often use money unconsciously to heal past wounds or fulfill unmet emotional needs. For example, a client frequently spent beyond her means to satisfy an inner child who never received treats growing up. Recognizing and addressing these underlying motivations can transform one's financial habits.
Joint Financial Management
"Having an advisor that is neutral... coming from a place of curiosity and love versus a place of judgment." - Scarlette Joyce Rojas
Rojas points out the importance of both partners in a relationship being involved in financial decisions, even if one person takes the lead. This collaborative approach can prevent miscommunication and foster a stronger financial strategy. Weekly check-ins and understanding each other's financial personality can help couples align their money habits, reducing conflict and promoting harmony.
Integrating Faith in Financial Decisions
Faith and Abundance
"I believe in a God of abundance... God does want to lead me to wealth." - Scarlette Joyce Rojas
Integrating faith and spirituality into financial planning emerged as a powerful theme. Rather than viewing money as inherently bad, recognizing it as a tool for achieving broader life goals can be incredibly liberating. Faith can provide a moral and ethical framework for making financial decisions, ensuring that wealth building aligns with personal values and societal good.
Rojas recounts the Prayer of Jabez, which emphasizes asking for God's guidance and blessing in expanding one's territory. This metaphorically extends to financial growth, urging believers to see wealth not as an end but as a means to fulfill a more significant divine purpose.
Practical Faith-Based Strategies
"Take care of what you have now... He is going to always give you more." - Vanna Padilla
Rojas and Padilla emphasize the importance of being good stewards of one's current resources. Effective money management starts with gratitude and responsible handling of existing funds, which in turn, prepares one for greater abundance. This perspective encourages a holistic view of wealth, where financial prosperity is intertwined with spiritual and personal well-being.
Recap and Broader Implications
Reflecting on the conversation, several key themes emerge that provide actionable insight for those seeking financial freedom:
Budgeting and Financial Planning: Start by assessing your current financial status through detailed expense tracking. Reallocate inconsequential spending to savings or investments.
Addressing Emotional Spending and Lifestyle Creep: Recognize the psychological factors that drive spending and use deliberate strategies to mitigate them. Align spending habits with long-term financial goals to break the cycle of paycheck-to-paycheck living.
Partnering in Finances and Leveraging Faith: Ensure both spouses are involved in financial planning. Leverage faith and spirituality to guide ethical and purposeful financial decisions, adopting a mindset of abundance rather than scarcity.
These insights underscore the importance of a balanced approach that encompasses practical budgeting strategies, psychological awareness, collaborative financial planning, and spiritual grounding. Such a holistic approach can pave the way for true financial freedom, enabling moms—and families—to live richer, more fulfilling lives.