Financial Strategy vs. Energetics of Money

There are two camps when it comes to teaching people about money. In one camp, you have the practical financial strategy experts, armed with spreadsheets, interest calculators, and checklists. In the other camp, you have the energetic money gurus, armed with emotional intelligence, vision boards, affirmations, crystals, and money archetypes.

So, which one can actually help YOU to master your personal finances and say goodbye to money stress for good?

Actually, it’s both and neither. Let me explain…Neither of these camps has the complete solution to help you achieve lasting financial success. Let’s talk about what each one gets right and wrong, and how to marry these two approaches, creating “practical magic” for your money.

The Practical Financial Experts

The practical financial experts are the money nerds armed with spreadsheets, financial calculators, and a plan to retire a decade or two ahead of the pack. They are focused on WHAT to do with your money: budgeting, cutting expenses, piling money into savings, demolishing debt, and maxing out retirement accounts. This is sometimes referred to as the “masculine energy of money.”

Many people weren’t taught the basics of personal finance at home or school, so this is valuable and needed knowledge! If you want to get your money sh*t together, you definitely need to learn what to do with your finances. There is a wealth of knowledge in this camp on how to master your spending, accelerate debt payoff, and invest wisely for the future.

Although the practical financial experts have the money management techniques in spades, they are missing something vital. By and large, these folks ignore the psychology of personal finance: WHY people do what they do with their money. Scientists recently discovered the moment of decision happens in the same part of the brain which processes emotion. That means it’s literally impossible to make a purely logical money decision!

This is one of the reasons why I saw my former Financial Peace University students fall off the wagon 12 months, 18 months, or 24 months after completing the course. At first it baffled me! I thought they had all the knowledge they needed to succeed. It wasn’t until I started studying the emotional side of money and behavioral finance, that I finally figured out what was missing.

?The Energetic Money Gurus

These money gurus are armed with emotional intelligence, vision boards, affirmations, crystals, and money archetypes. These individuals preach the “woo-woo” side of personal finance. It’s all about your energy and how you FEEL about your money. They are focused on your relationship with money, healing past money trauma, forgiveness work, and gratitude. This is sometimes referred to as the “feminine energy of money.”

I learned NONE of this when I earned my Certified Financial Counselor designationin 2008. When I began to discover this side of personal finance, a whole new universe opened to me. I realized why some of my students and clients struggled to implement various financial tactics. Emotions drive our behavior and if we don’t understand how this works, we will be forever fighting against them, instead of harnessing their power. ?

Many of the practices the energetic money gurus teach are actually supported by science and aren’t as woo-woo as you might think. There are scientific reasons why vision boards, positive money affirmations, and improving your relationship with money actually work.

Most of these gurus know these things are effective, but few of them teach the science behind WHY they work. And some of these money gurus do teach things that are just plain hokum. Reading your “money horoscope” might be entertaining, but it’s not going to get you out of debt! The missing ingredient in their financial rituals is the tactical knowledge needed to make real progress. It’s wonderful to feel good about your money, but it must be paired with practical action!

Mindful Money Management

If a practical financial expert and an energetic money guru had a baby, we’d call it Mindful Money Management. When we marry the deep understanding of the emotional side of money with the practical financial strategies, success is inevitable! This Mindful Money Management approach is baked into all of my books , coaching, and courses.

It’s important to uncover WHY we do what we do with our money, and then correct those negative patterns which keep us stuck in destructive behaviors. Yes, this involves exploring our past money stories, doing forgiveness work, creating vision boards, and writing positive money affirmations. Uncovering and fixing my client’s internal “money blueprint” is the first step.

Once I understand what my client’s emotional money triggers are, I then suggest practical actions to fuel their positive emotions and short circuit the negative ones. We create a personalized prosperity plan to accomplish their unique goals. Yes, this involves action checklists, using a spending app, and doing the homework.

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The Path to Lasting Financial Dignity?

The path to lasting Financial Dignity? is this: bringing a deep understanding of the psychology of money together with useful financial strategies. This is what I call the “practical magic” for your money! My clients are usually amazed by their financial progress when these two powerful forces are brought together. In fact, I’m wrapping up a coaching engagement with a couple who increased their net worth by $56,000 in the 6 months we worked together – wow!!

So, if you’ve followed either the practical financial experts or the energetic money gurus with limited success, you’re not alone! It’s time to bring those approaches together and start mindfully managing your money!

P.S. Want a financial coach who blends the best practical financial strategies with the power of emotional intelligence? Let's chat!