Mastering an Abundance Mindset to Achieve Financial Freedom | with Diania Merriam

Define Financial Freedom:

Many of us have a bad habit of pretending that earning, saving, and investing money isn't an emotional journey. However, as we began our call this week, several members shared their positive and negative emotions and beliefs about finances. Before we delve into this blog post, take a moment to think about five words or phrases that come to mind when you hear the term "financial freedom."

Community Perspectives:

As we reflect on these words or phrases, let's consider some responses from our heart-centered entrepreneur community. They mentioned positive and calm words like #free, #joy, #peace, #giving, and #relief. However, there were also a few negative responses such as "that's not for me," "yea right," and #impossible.

Understanding Scarcity and Abundance:

To discuss abundance, we must first address its opposite mindset, which is scarcity. Our special guest this week, Diania Merriam, founder of The EconoMe Conference and host of Optimal Finance Daily podcast, explains scarcity as a deeply ingrained system of thinking in our society. It stems from the belief that we need "more" to feel safe. Diania emphasizes that money only holds value when we have clarity on how we'll spend it and our comfort level with what is enough.

Recognizing Abundance:

Diania further explains that abundance is the recognition of the wealth we already possess. It involves creativity and resourcefulness in leveraging not just money but also time, energy, and circumstances. Have you ever told yourself, "I already have enough, and I'm going to leverage my current resources to create a life I love"?

Diania's Journey:

It's easy to dismiss the beliefs of financial experts, assuming they had an easier upbringing or have been on their financial freedom journey longer. However, Diania's story proves otherwise. Despite her own hardships and negative emotions surrounding money, she achieved financial independence and early retirement goals through her abundance mindset.

Roots of Diania's Relationship with Money:

Diania's relationship with money traces back to her childhood. Her mother, a hard-working bread-winner, knew how to make and manage money, while her father, the homemaker and nurturer, tragically passed away when she was just two years old. Diania admits that her mother never wanted children but agreed to start a family to honor her late father. After his passing she was raised by a single mother who was emotionally unavailable, Diania often felt unwanted and unloved, despite being financially provided for.

The Scarcity Mindset Trap:

Diania's upbringing fueled her fierce independence and drive for success, ticking off boxes of achievements, education, and career milestones. However, much of her success story was rooted in a scarcity mindset. By the age of 30, she had accomplished all her goals but felt miserable. Scarcity extends beyond money, and people often confuse it with abundance, mistakenly believing that having more will bring fulfillment.

The Importance of Financial Literacy:

Diania emphasizes the need for women to become financially literate. Without understanding money and investing, we become vulnerable to exploitation by those who recognize our financial illiteracy.

Shifting from Scarcity to Abundance:

Diania experienced a mindset shift from scarcity to abundance when she ran a credit report on herself. Realizing she was $30,000 in debt, living paycheck to paycheck due to poor money management, she understood that making more money wouldn't solve her financial issues.

Creating Wealth:

Diania explains that wealth and financial independence are created in the "gap" between income and expenses. The larger this gap becomes, the more our money can work for us. Money management is key, and the fundamental principle is to spend less than you earn and invest the difference.

The Emotional Side of Financial Success:

Beyond money management, the emotional aspects cannot be achieved or bought with money. Diania highlights that money can solve money problems but not emotional ones. Many financially literate individuals still struggle with fear, insecurity, worry, and obsession, living in a scarcity mindset. The belief that more money will make us feel safe is a misconception.

Achieving Financial Freedom:

Diania recommends saving between 5-20% of your income, but with a shift in mindset and financial planning, she was able to save 60% of her income. By front-loading her retirement accounts and leveraging compound interest, she achieved what the financial independence community calls coast FI. This means she only needs to cover her living expenses to be considered financially free.

The Power of Financial Independence:

Diania's financial independence allowed her to leave a discriminatory corporate role without feeling powerless. Early retirement provided her with the time freedom to pursue more fulfilling personal and professional goals.

The Value of Money:

Diania acknowledges that money is the only aspect of life where you can mess up completely and still be fine. This isn't the case with health or relationships. She reminds us not to confuse our net worth with our self-worth.

Conclusion:

In conclusion, it's crucial to recognize the emotional side of financial freedom. By understanding scarcity and shifting to an abundance mindset, we can achieve true financial independence. Money management is essential, but it's equally important to address the emotional aspects that money can't solve. Let's strive for financial literacy and leverage our current resources to create lives we love.

During my interview with Diania, she recommended a few books to get you started on your financial independence journey. During our Q&A after the interview with our live members community, she recommended a few more as well. Here are the links to all of these resources in order of recommendation by Diania. 

The Simple Path to Wealth by JL Collins

Your Money or Your Life by Vicki Robbin

Why Does the Stock Market Always Go Up by Brian Feroldi

It's Not Your Money by Tosha Silver

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