I hate to break it to you but you will always struggle financially if you’re making the same money mistakes that the majority of people out there are on a daily basis. Sadly, many people want to live in a much better financial reality but they aren’t willing to change their money management approach. Let me share with you the mistake you’re probably making and how correcting this mistake will change everything when it comes to your money!
Money is undoubtedly important in our lives. We use money to buy the things we need and to pay for services that improve our day to day lives. However, as important as money is, many people find it hard to talk about money. Discussions about money tend to stir up a lot of intense emotions hence people’s aversion to this line of dialogue.
To many people, not talking about money is the best way to avoid this issue but what they don’t realize is that not talking about money is a big mistake that can keep anyone broke forever. In fact, talking about money can bring lasting rewards, which is why I now want to go over 5 reasons why talking about money can benefit you and improve your overall financial life!
Benefit #1: Talking about money can motivate you
The first benefit of talking about money is that it can motivate you. Have you ever been in a room full of people who were all quiet, then suddenly someone brings up a topic and everyone seems to have something to say? The person who started the conversation may not even be the person that has more knowledge on the topic. This phenomenon definitely relates to talking about money. Because of the way most people were raised, they may not start a conversation about money but they will gladly contribute when someone else raises the topic.
Talking about money, especially to people who are already successful, can motivate you. For example, if you have a limiting belief about starting a business, someone who is already successful in such a business could share insights and make you see different avenues that you can take to succeed yourself. Another example of how talking about money can motivate you is when you are faced with difficult financial situations. Sometimes, such situations may seem unique to you, until that is, you talk to someone else dealing with the same challenge. For instance, maybe your first business just failed and you are thinking of giving up. Once you hear others admit that they were only successful at their fourth business, you may find reasons not to give up.
Knowledge is power and sometimes, the only reason why you are not motivated is that you don’t know what to do. You may be working in the same office with people who have knowledge about making money but you won’t get to tap into their knowledge without actually bringing up this topic with them. When you talk about money, people will share their ideas and you may be surprised at the level of knowledge that you will gain. They can offer you tips on how to save more money or tell you about how they created a budget that works. They may also share with you where they buy things to save more money or new ways to make more money.
Like most fears, you can easily overcome your fear of talking about money. All you have to do is to change the mindset that makes you believe that people don’t want to talk about money. The truth is that most successful people are ready to share their stories if someone is willing to ask. You can start a conversation by asking simple questions like what they think about having a budget.
Benefit #2: Talking about money can add tools to your toolbox
If you grew up in a poor home, you may find it difficult to talk to people about money. While this is not your fault, you have to understand that talking about money can add tools to your toolbox. People who grew up in a rich family are usually more open to talk about money and share their views. People who talk about money can easily get other people’s opinions and suggestions that may benefit them greatly.
For instance, there is a story of two good friends who teamed up to build a great company. The two of them found out that they had similar passions for technology and gadgets. However, one of them realized that he was better at marketing while the other friend was better at the technical aspect of the business. These two friends are Steve Jobs and Steve Wozniak who started Apple in 1976. These two friends must have been talking about money to realize that they need to specialize based on their strengths.
Talking about money will help you learn from others. You can learn from their mistakes and avoid making the same ones. You may read several books that talk about money but they cannot be compared to a discussion with someone who has the experience. A book may tell you that you should save money for retirement but talking about money with someone who has saved for retirement will help you learn the exact steps that person took to be able to save money for their golden years.
Moreover, when you are having a good conversation about money with successful people, they may likely share with you some strategies that will help you expand your income. For instance, you may be able to generate new business ideas from the conversation. Some of the secrets you will learn by talking about money with successful people may be things that will contribute to your success now.
Benefit #3: Talking about money can help you identify your value
Another way talking about money can benefit you is that it can help you identify your value. It can be a touchy subject to talk about money with friends and colleagues but it can make all the difference in your career.
What do you do when you are going to a new place that you’ve never been to before? You get a map or you ask people for directions. You don’t feel ashamed for asking because you don’t know. That is the same way it should be when you are talking about money. Talking about money is like a map and you may get to find out so many things that you didn’t know about money by starting the conversation. Talking about money can help you learn how much you should be earning as a salary or how much you should be charging as a freelancer. For instance, you may find out that you are being underpaid by talking to someone who has a similar role as you.
Research has found out that some people are more willing to go to a dentist than negotiate. And 8 out of 10 people dread visiting a dentist. What this means is that people are more likely to face their fear of visiting a dentist than facing their fear of negotiating with others. However, talking about money is one of the ways to overcome this fear and ask for what you truly deserve. The truth is most people get a raise at times when they ask. Listening to those who have been in similar situations share their experience might give you enough confidence to know what to say when asking for a raise either from your employer or as a freelancer.
Another aspect that is difficult for some people is how to start a conversation about money. You should keep it simple and be genuine. You could walk up to a more experienced person in your company and ask them if it is okay to talk, requesting that they share with you secrets on how to increase your performance at work to warrant future salary increases.
Benefit #4: Talking about money adds transparency to relationships
Money is one of the leading causes of divorce today yet most couples seldom talk about it. Talking about money adds transparency to relationships especially intimate ones like marriages. Whether you are in a business relationship or a love relationship, talking about money can help you understand whether you share the same values with your partner. Money is attached to emotions more than most people think. Every individual has their own story and experience as well as the value that they place on money. Therefore, when people with different backgrounds come together, they must learn to start talking about money if they want to make the relationship last.
Some people believe that as long as they don’t talk about money that they will be fine but that is rarely the case. When you don’t talk about money, you are hiding your true emotions and one day you won’t be able to keep in those emotions any longer which could cause serious fights or separation. It is best to start talking early in a relationship to avoid arguments about money. A partner may decide to spend money on a particular item and the other partner may see it as a waste of money. One may want to donate to a charity and the other partner may think it’s unnecessary. When you talk about money, you are going to find common ground where you both agree on how to manage your money.
Moreover, did you know that talking about money can help you to get out of debt? If you are married, for instance, your partner may understand you better when you talk about money together. Your partner may stop you from making financial decisions that may negatively affect your finances and since they know your financial status, they are likely not going to put any undue pressure on you to spend money.
Another advantage of talking about money with your partner is that it helps you build trust. Partners who share how much they earn with each other will likely trust one another more than those who do not share how much they earn. If a partner talks about money and reveals how much he or she makes, the other partner may do the same and may share how they spend it.
Benefit #5: Talking about money allows you to learn and then teach others
One of the best ways to learn is by teaching others. Therefore, one of the best ways to learn about money is when you talk about it and teach others. As you begin to teach others, you begin to develop a deeper understanding of the subject.
The best way to understand how this works is to think of driving a car. You may find it difficult at first to learn how to drive a car but it looks so simple when you are the one teaching others how to drive. Sometimes you may wonder why they are not getting it because to you, its now second nature. When you start talking about money, you begin to gain clarity about money as a whole. When you talk about money, you try to explain with the simplest term possible for others to understand you. This will expand your knowledge on the topic each time you talk about it.
It is also possible that people will ask you questions when you talk about money. The benefit of this is that your brain will try to make several connections from previous knowledge to find answers to the questions. What this does is that it strengthens your understanding of the topic. It is also possible that you will learn something new from the questions. For example, someone else may also contribute and their answer would be different from your own. This is the secret of teachers who seem to have more knowledge than everyone else does. The reason for this is that they talk about what they know often. If you want to know more about money, then you must start talking about it too!