3 ways we play small with money

I’ve noticed a recurring pattern of people on my podcast who “play small” with To view this email as a web page, [click here]() {NAME}, I’ve noticed a recurring pattern of people on [my podcast]() who “play small” with money. They signal this through small verbal tics, or mindsets based in scarcity. Have you ever played small with money? Below are 5 ways we do it. --------------------------------------------------------------- Today’s newsletter is sponsored by [Facet](). [Facet]() I never want you to pay a financial advisor who takes a percentage of your assets. If you’ve been looking for a fee-based financial advisor, check out Facet. As an IWT listener, Facet will put [$500 into your brokerage account when you invest $5k within your first 90 days](). Sponsored by Facet. Facet Wealth, Inc. (“Facet”) is an SEC registered investment adviser headquartered in Baltimore, Maryland. This is not an offer to sell securities or investment, financial, legal, or tax advice. Past performance is not a guarantee of future performance. Terms and conditions apply. Find special deals here from [all of our sponsors](). --------------------------------------------------------------- 3 ways we play small with money 1. “I got it on sale!” [Always minimizing how much we paid / focusing on cost] These are people who cannot accept a compliment without talking about price. In their head, spending money is “bad” and they are “good” when they save. A lot of people in this situation were raised by religious parents or parents in the Midwest. I recently asked someone on the podcast how her family trip abroad was. She immediately started telling me it was fun but they spent too much on airfare....and I simply said, “Why are we talking about price?” Because cost is so central to the people in this category, they think it is for everyone. (And deep down, they are scared of being judged for being “bad.”) But in reality, most people do not care how much you paid for something. And nobody is morally better for paying less on something. 2. “I feel bad...” [Avoiding numbers so we can let our feelings rule] These are people who constantly feel bad about money: overwhelmed, behind, like they’ll never have enough. Reality: The vast majority of people in this category do not know even the basics of their numbers (50% of them do not even know how much money they make!). Listen, money is emotional—and that’s fine! We shouldn’t try to pretend money is simply a series of numbers, because money is emotional and [money is political](). But sometimes, your feelings lead you astray. If you want to get really good at money, you have to learn how to engage with the actual numbers. They’re not that scary! Learn your 4 key numbers: Fixed costs, Savings, Investments, and Guilt-Free Spending. [Read my book](). Or get it on [Audible]()! 3. “Yeah, I have a little debt...but at least I don’t have $50,000 of debt like Mark!” [Comparing themselves to someone else] The most interesting part of these comparisons is that most of us compare ourselves downwards when convenient—but we quickly shift it upwards when even more convenient. Watch: “My debt isn’t as bad as theirs!” [Downward: ‘They’re worse off than me, so I’m not doing that bad’] “Oh, sure, we spend a lot, but we’re not like the Johnsons. They’re wealthy. We’re comfortable.” (Upward: They’re rich, we’re just everyday people! *vomit* if I hear another person with $6.9mm claiming they’re “middle class”) Here are a few more: - “I’m not good with money” (I bet $10,000 you’ve never read a single book about money) - “My wife is the money person in our relationship” (delegating control to someone else) I have a lot more of these, but first I want to hear from you. How have you played small with money? [Signature] P.S. This week on the podcast: “Our financial advisor almost cost us $800k. How do we fire them?” Check out this [fascinating conversation]() with Susan and Jeff who realized they were about to pay $800,000 in fees to their advisor. [Podcast]()   You may be new to IWT. Here's all the stuff we offer [Programs]() [Podcast]() [Netflix show]() [Books]() [Check out our website for more]() Follow Ramit [ig]() [fb]() [tw]() [yt]() [pc]() Was this forwarded to you? Sign up [here](). This email was sent to [{EMAIL}](). If you no longer wish to receive these emails you may [unsubscribe]( at any time. 548 Market St #89946 San Francisco, CA 94104-5401