Description

Introduction

Have you ever felt like something’s off despite your best efforts to manage your finances? You’re not alone. Many people struggle to find joy in financial stability, despite following traditional budgeting advice. The issue lies in a narrow focus on saving and budgeting, without considering what’s truly important to you. A more effective approach is to align your financial choices with your life values and goals.

In “Beyond Getting By,” Holly Trantham offers a fresh perspective on personal finance. By balancing financial management with personal fulfillment, you can create a more sustainable and enjoyable relationship with money. This approach involves setting fair pay, tackling imposter syndrome, and avoiding extreme frugality. By embracing a balanced approach to money, you can achieve financial security and freedom from stress.

Financial health starts with understanding the relationship between money and well-being. It’s about making intentional decisions that enhance your life, rather than just following rules or restrictions. By redefining your approach to personal finance, you can create a more authentic and fulfilling relationship with money. This journey involves exploring your values, goals, and priorities, and using them to guide your financial decisions. By doing so, you can achieve a secure and enjoyable life, free from the constraints of financial stress.

One

Traditional approaches to personal finance often focus on strict budgeting and relentless saving, but this can lead to frustration and burnout. This shame-based approach can be counterproductive, making you feel unworthy and stuck in a negative cycle. Instead, consider a more compassionate approach to budgeting, one that recognizes and celebrates small victories rather than focusing on perceived failures. Lindsay Bryan Podvin, a licensed financial therapist, suggests that shame-free budgeting is a more effective way to achieve financial well-being.

A balanced approach to budgeting involves focusing on three core principles: paying bills on time, avoiding debt for lifestyle expenses, and investing in long-term financial goals. The 50-30-20 rule can be a useful framework, allocating 50% of your income to needs, 30% to wants, and 20% to financial goals. Alternatively, you can frame your budget through the concepts of financial ego, superego, and id, ensuring you meet your needs and goals while also allowing for personal enjoyment. This approach encourages a balanced and sustainable relationship with money.

By moving beyond shame-based budgeting, you can create a financial management system that enhances your life rather than restricts it. Aim to create a budget that supports both your current well-being and future security, fostering a healthy relationship with money free from shame. This balanced approach will help you live more abundantly and focus on what truly matters in your life. By letting go of shame and embracing a more compassionate approach, you can achieve financial stability and freedom.

Two

The concept of a happiness threshold in personal finance suggests that up to a certain income level, more money increases happiness, but beyond that point, additional income yields diminishing returns. However, this threshold varies greatly depending on individual circumstances and values. What’s essential is understanding your own needs and priorities, rather than comparing yourself to others. Strong relationships, autonomy, and living according to personal values are key factors in happiness, and financial stability can provide the necessary resources to support these aspects of life.

Interestingly, research shows that wealthy individuals often report lower happiness levels, possibly due to increased isolation and less time with family and friends. The phenomenon of “golden handcuffs” can also trap individuals in unfulfilling jobs, leading to lifestyle inflation and a perception of needing more to be happy. To define your own happiness threshold, assess your spending habits and compare them with your values. Ensure your current income allows you to cover essential expenses and discretionary spending aligned with your core values.

Achieving financial stability should support a balanced life where money is a tool, not the end goal. By focusing on personal values and maintaining flexibility, you can create a fulfilling life that goes beyond mere financial success. Regularly reassess your financial situation to ensure it meets your evolving needs and circumstances. This approach will help you make intentional financial decisions that align with your values and priorities, leading to a more satisfying and meaningful life.

Three

Our culture’s obsession with cutting costs has led to extremes, encouraging mindless consumption that prioritizes low prices over quality, ethics, and environmental sustainability. Fast fashion is a prime example, with brands producing thousands of new items daily at incredibly low prices. However, this comes at a significant ethical and environmental cost, including exploitative labor practices and massive carbon emissions. While affordability may be a necessity for some, for many, the appeal lies in buying more for less, often leading to waste and a diminished appreciation for quality.

Achieving financial security requires distinguishing between an abundance mindset and an excess mindset. An abundance mindset is about feeling secure with your resources and confident enough to spend on what truly matters without overindulging. In contrast, an excess mindset leads to unnecessary accumulation of goods driven by fear of missing out. Financial therapist Lindsay Bryan Podvin advocates for a balanced approach, pursuing financial goals while also enjoying life’s pleasures through mindful spending, understanding core values, and making informed financial decisions.

Breaking cheap habits takes time and effort, but it’s possible to cultivate a more fulfilling and balanced financial life. Start by focusing on one area where you want to live more abundantly, setting aside a small amount each week for a specific purpose, or unfollowing brands that tempt you into unnecessary purchases. Planning ahead with sinking funds or savings set aside for specific purposes can also facilitate thoughtful spending without financial strain. By committing to mindful and ethical spending, you can create a more intentional and balanced relationship with money.

Four

Overcoming imposter syndrome is crucial for negotiating your worth and boosting your income. Imposter syndrome, which affects many people, particularly women and marginalized groups, can undermine confidence and make it challenging to advocate for oneself. Recognizing and combating internal doubts is essential, and understanding that many successful individuals benefit from systemic advantages can help reframe feelings of inadequacy. Meritocracy is often a myth, and acknowledging the role of privilege and advantage can help you develop a more realistic perspective on your abilities.

Building confidence and negotiating effectively require a strategic approach. Maintaining a career journal to track achievements, preparing for performance reviews, and cultivating strong workplace relationships can make negotiations feel less transactional. It’s essential to remember that companies act in their own best interest, and so should you. Negotiating for better pay is critical, as companies rarely offer more than what you ask for. Even small raises can significantly impact long-term earnings due to compounding.

To advocate for yourself effectively, focus on understanding your value and building a strong case for your worth. This can involve setting the correct rates as a freelancer, leveraging opportunities to gain skills and build relationships, and seeking non-salary benefits like tuition reimbursement. Regularly checking in with your manager, tracking your achievements, and preparing for performance reviews can also help you stay on track. By understanding your value and advocating for yourself, you can overcome imposter syndrome and achieve your financial goals.

Five

Traditional metrics of success often prioritize wealth and ambition, but this relentless pursuit can lead to toxic work environments and personal dissatisfaction. The Kardashian-Jenner family’s rise to fame, for example, highlights the flaws in this model. Despite claims of being self-made, their privileged background and built-in audience played a significant role in their success. Moreover, their business ventures promote an unattainable image that requires significant financial investment, perpetuating unrealistic standards and exploitation.

The issue extends beyond individual examples, with systemic privilege and inequality embedded in certain practices. Unpaid internships, for instance, are often accessible only to those who can afford to work without pay, perpetuating inequality. In reality, many successful individuals owe their positions to connections and support rather than sheer talent or hard work. To create a more equitable work environment, advocating for better workplace conditions and fair compensation is essential. This includes supporting employees, pushing for raises, and fostering positive feedback.

Redefining success means moving beyond traditional metrics of wealth and power. By advocating for equitable practices and supporting collective well-being, we can create work environments where everyone has the opportunity to thrive. Unions, for example, can provide better pay, benefits, and working conditions, significantly improving workplace fairness and employee satisfaction. Ultimately, true fulfillment comes from aligning your career with your values and advocating for a healthier, more inclusive workplace culture. By prioritizing fairness, equity, and well-being, we can create a more sustainable and fulfilling definition of success.

Conclusion

The main takeaway from “Beyond Getting By” by Holly Trantham is that financial stability comes from aligning finances with values and life goals. By distinguishing between frugality and cheapness, overcoming imposter syndrome, and advocating for fair workplace practices, you can achieve a balanced financial life. This approach promotes mindful spending, self-advocacy, and an abundance mindset, leading to financial security and personal well-being.

About the author

Holly Trantham is the creative director at The Financial Diet, a role she’s held since 2016. She’s known for her expertise in personal finance and creative strategy, making financial advice more accessible and engaging through her work.

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