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We’re all wired differently. Our passions, our fears and our dreams are different. And when we hear the word money, we all have unique thoughts and emotions too.



For years now, I’ve been coaching people about personal finance. What I’ve come to learn time and time again, family after family, is this: Whether or not you’re successful with money isn’t about knowledge, IQ or how good you are at math. It’s about behavior.



My dad, <a href="https://successcom.wpenginepowered.com/dave-ramsey-has-a-plan-for-the-rest-of-your-life/">Dave Ramsey</a>, has been saying it too: “Personal finance is 80 percent behavior and only 20 percent head knowledge.” That’s why our&nbsp;proven plan for getting out of debt&nbsp;relies on changing your behavior, not throwing a bunch of numbers and formulas at you.



You see, money isn’t the problem. What you don’t know about yourself and why you do what you do is the problem.



<h2 id="h-self-awareness-is-key-to-winning-with-money">Self-Awareness Is Key to Winning with Money</h2>



Once you know yourself better, you can harness the power of your own mind, your thoughts and your will—and <a href="https://successcom.wpenginepowered.com/the-7-forces-of-lasting-change/">you can make lasting change</a> to be the healthiest version of you.



Right now, in Nashville where we live and through much of the South, the Enneagram is huge. It’s a personality typing system, and it’s honestly the best assessment I’ve found that accurately describes the way I tick.



The reason I love the <a href="https://successcom.wpenginepowered.com/take-the-enneagram-checkup-are-you-the-healthiest-version-of-you/">Enneagram</a> and other personality tests like it is because they give me the gift of self-awareness. Self-awareness is incredibly valuable. Socrates said, “The unexamined life is not worth living.” If we live our whole lives without learning which strengths, weaknesses, perceptions and tendencies we bring to the table, we’ll never grow. And we’ll never experience real transformation with our money, either.



Over the last decade, I’ve seen this stuff play out in real life while coaching people with their money. If you want to get to the root of&nbsp;why&nbsp;you behave the way you do—why you spend, save, use debt and more—you’ve got to learn about the mindset behind the way you view money.



<h2 id="h-5-ways-your-mindset-affects-your-money">5 Ways Your Mindset Affects Your Money</h2>



I love digging into money tendencies and how they play into someone’s story. Like I said before, everyone is different, and none of these tendencies are right or wrong. It’s just how you’re naturally wired.



<h3 id="h-1-spender-vs-saver">1. Spender vs. Saver</h3>



You can probably identify whether you’re a spender or a saver pretty easily. Spenders see nothing but possibilities when it comes to money! This one is totally me. I’m a spender, so whenever I have extra money, it burns a hole in my pocket, and I can’t wait to spend it.



But a saver’s first instinct is to&nbsp;not&nbsp;<a href="https://successcom.wpenginepowered.com/what-motivates-you-to-save-money/">spend their money</a>. Savers actually enjoy tucking money away because it makes them feel good. Savers tend to be more patient people and are willing to wait to make a purchase.



What’s dangerous for both spenders and savers is going to the extremes. As a spender, if you spend&nbsp;everything&nbsp;you make, you’ll wind up broke. And savers, if you save&nbsp;everything&nbsp;you make, you’re going to miss out on a lot of fun experiences that make life joyful.



<h3 id="h-2-nerds-vs-free-spirits">2. Nerds vs. Free Spirits</h3>



Nerds get excited about telling their money where to go each month. They thrive on crunching numbers and genuinely look forward to organizing their budget. They might use spreadsheets, apps and research to find ways to make their money go further. Everything has a nice, neat place, and they love it.



Free spirits are where the party’s at. They don’t get too bogged down in the details, and they find it easier to just sit back and enjoy life. Thinking about the budget might make a free spirit break out in hives. However, the shopping and entertainment categories are basically their love language.



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img src="https://successcom.wpenginepowered.com/wp-content/uploads/2021/03/Believe-and-Achieve.jpg" alt="Believe and Achieve:

People who have a healthy money mindset believe things like:

• I have the freedom to spend, but I can also tell myself no to a purchase.
• I enjoy helping others who are struggling by giving generously.
• I don’t have to compare myself to others.
• It’s possible to achieve my financial goals.

No matter your race, religion or level of income, you have the power to make your own success. Some people have bigger obstacles in their story than others, but simply believing is the first step. Your behavior will follow your beliefs, making it easier to stick to good habits. And over time, your entire perspective will change for the better.
" class="wp-image-60254" width="437" height="595"/></figure></div>



Free spirits need the nerds to help them make a realistic budget. My husband, Winston, is a nerd, and I love his attention to detail and how he always knows exactly what’s going on. And hey, free spirits can learn to love budgeting too! A budget gives you permission to spend.



Nerds need the free spirits to inject some fun money into the budget for nonessential categories, like date nights, vacations and birthday parties.



Before you assume people who like to save money are the nerds, and people who love spending are the free spirits, guess again. My dad is actually a nerd-spender. He loves spending money, but he also loves playing with numbers and having control over the budget.



<h3 id="h-3-safety-vs-status">3. Safety vs. Status</h3>



Are you financially motivated by safety or status? For this one, you may have to do some real soul-searching. Think through what motivates you when you spend or save. And be honest with yourself! This tendency is key to understanding why you handle money the way you do.



People who value safety want the&nbsp;security that money can bring. They want to know they can withstand job loss, a medical emergency or even just a dip in income. If you’re a safety person, you need to watch out for living in fear because fear can keep you from giving generously, investing in retirement, or even spending money on a new pair of shoes when the ones you wear every day have a hole in them and&nbsp;clearly&nbsp;need to be replaced.



If you recognize the unhealthy side of the safety tendency in yourself, the best thing you can do is build up an emergency fund. That way, you know you have money set aside for when the unexpected happens, and you can still hold your money with an open hand for the other things you want to do with it.



If money is about status for someone, it’s how they <a href="https://successcom.wpenginepowered.com/side-hustle-smarts-5-metrics-to-measure-success/">measure success</a>. The amount of money they have affects the type of home they live in, the activities they’re involved in, and their ability to go on that dream vacation. When someone prioritizes status in an unhealthy way, they’ll be more likely to go into debt to prove their status to others. (More on this motivation later.)



<h3 id="h-4-abundance-vs-scarcity">4. Abundance vs. Scarcity</h3>



People who <a href="https://successcom.wpenginepowered.com/6-ways-to-embrace-an-abundance-mindset/">live in an abundance mindset</a> believe there’s always more than enough for everyone. They take more risks, and they don’t fear the outcome of a decision. They also tend to be natural givers, believing there are always ways to make more money.



This glass-half-full mentality can interfere with making wise choices with money. If this is you, seek the advice of family and friends you trust before making a big purchase (even if it’s for someone else). Don’t make important decisions in a vacuum.



People who operate under the assumption of scarcity make money decisions based on a belief that resources are finite. They hold onto possessions tightly because they “might need that someday.” And sometimes they fear losing things because they might not be able to replace them.



If you lean toward scarcity, don’t miss smart financial opportunities that will move you forward in life because fear is undermining your thinking. I always say that fear is a terrible financial advisor. Focus on facts, not fear, and you’ll feel better about your money.



<h3 id="h-5-your-family-and-childhood">5. Your Family and Childhood</h3>



The way you heard your parents talk about money—or not talk about it—definitely influenced your attitude about it from an early age. This alone won’t define your&nbsp;money mindset, but it’s good to be aware of.



Maybe you grew up in a family where money was a source of conflict. It was something that brought tension into your household, and you felt the stress around your parents struggling to pay their bills. That definitely impacts your view of money today!



Or maybe you grew up in a household where you didn’t see or hear about money. So now, as an adult, you’re tempted to not manage your money at all. Some say ignorance is bliss, but that’s not true when it comes to your money. It’s like a boat with no captain. You need to pay attention to where the boat is going. Someone has to steer it. If you don’t tell your money where to go, you’ll wonder where it went.



This is where knowing yourself can lead to healing, change and more progress than you’ve seen before.



<h2 id="h-how-your-money-tendencies-affect-your-decisions">How Your Money Tendencies Affect Your Decisions</h2>



The truth is that money is just a magnifying glass—it makes you more of who you are.&nbsp;If you’re kind and generous, you’ll be even more kind and generous with money. If you’re rude and self-centered, you’ll be even more rude and self-centered with money. Money is simply a tool, and you get to determine what to do with it.



Think of money like a brick—it doesn’t have feelings or motives. But someone can use a brick to throw it through a window to rob a store. Or someone could use it to build an orphanage. It can be used for good or evil. The same is true of money.



Your feelings and motivations around money influence the way you use it. One example for me is in the safety versus status tendency. I’m naturally motivated by status when it comes to my money. I’m more likely to value a name-brand purse or luxury vacation, and I’m more likely to find a way to justify a larger purchase if, on some level, it makes me feel successful.



On one hand, this just means I like nice things—and please hear me when I say there’s nothing wrong with having nice things if you can afford them. But knowing that I have that status tendency means I have to keep my spending in check. Now, before I make a purchase, I always ask myself, “Would I still buy this if no one else ever saw it?”



Remember that the biggest obstacle between where you are today and becoming wealthy is not&nbsp;opportunity or income—it’s you controlling you. So, put your focus on the things you can control: your thoughts and your habits. It takes dedication and discipline, but the good news is, it doesn’t cost a thing.



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<h2 id="h-know-yourself-know-your-money">Know Yourself, Know Your Money</h2>



<h3 id="h-the-new-book-by-rachel-cruze">The New Book by Rachel Cruze</h3>



I know this stuff is hard work, but I also know that you can do it. I know you can, because I’ve seen millions of people from all backgrounds and income levels find the courage to make lasting change—not just for them, but for their whole family tree!



That’s what inspired me to write my new book,&nbsp;<a href="https://amzn.to/3ewIVvD" target="_blank" rel="noreferrer noopener">Know Yourself, Know Your Money: Discover WHY you handle money the way you do, and WHAT to do about it.</a>&nbsp;It will help you examine your own everyday tendencies with money, make lasting change in your habits and behavior, and get on the fast track to achieving your dreams.



Leadership speaker Charles Jones once said, “You’ll be the same person in a year as you are today except for the people you meet and the books you read.” Here are some more of my favorite books for changing your mindset:



<ul><li><a href="https://amzn.to/38yl0YY" target="_blank" rel="noreferrer noopener">The Total Money Makeover&nbsp;</a>by Dave Ramsey</li><li><a href="https://amzn.to/3ezrgTX" target="_blank" rel="noreferrer noopener">Switch On Your Brain</a>&nbsp;by Dr. Caroline Leaf</li><li><a href="https://amzn.to/3t7SvZU" target="_blank" rel="noreferrer noopener">The Power of Habit</a>&nbsp;by <a href="https://successcom.wpenginepowered.com/how-to-create-habit-chains/">Charles Duhigg</a></li><li><a href="https://amzn.to/3viEEBP" target="_blank" rel="noreferrer noopener">The 7 Habits of Highly Effective People</a>&nbsp;by Stephen R. Covey</li></ul>



 This article originally appeared in the&nbsp;<a href="https://store.success.com/by-media/success-magazine-mar-apr-2021-daymond-john.html" target="_blank" rel="noreferrer noopener">March/April 2021 issue of SUCCESS magazine</a>. Photo courtesy of Ramsey Solutions

Money isn’t the problem. What you don’t know about yourself and why you do what you do is the problem.

Money isn’t the problem. What you don’t know about yourself and why you do what you do is the problem. | SUCCESS

Why It Pays to Know Your Money Mindset

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Why It Pays to Know Your Money Mindset | SUCCESS

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Rachel Cruze is a two-time #1 national best-selling author, financial expert and host of The Rachel Cruze Show. Since 2010, Rachel has served at Ramsey Solutions, where she teaches people to avoid debt, save money, budget and how to win with money at any stage in life. She’s authored three best-selling books, including Love Your Life, Not Theirs and Smart Money Smart Kids, which she co-wrote with her father, Dave Ramsey. Her latest book Know Yourself, Know Your Money: Discover WHY You Handle Money the Way You Do and WHAT to Do About It will release in January 2021. Follow Rachel on Twitter, Instagram, Facebook and YouTube or online at RachelCruze.com.

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Rachel Cruze

Success

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We all want to save money. And some of us are better at it than others—but it’s something anyone can learn.



In order to do that, we need to talk about why we save (and don’t save) money. People are naturally either savers or spenders. You natural savers may not think you need to read this. But hold tight—there’s more to saving than you might think. And spenders, I promise this won’t be a boring conversation on saving. It’s actually going to set you up to spend money on the things you really value.&nbsp;



A lot of us think about saving all wrong. It feels boring or like a burden, an added expense you can’t afford, or something that stands in the way of what you want right now. We forget that saving money is actually a joy. You get to save a portion of every dollar you make for yourself and your future! Aside from saving up your emergency fund, when you’re saving, you’re typically saving for one of your dreams: something you want to experience or buy or do. Seeing your savings account grow—knowing all that money is going toward something you want—is actually a lot of fun! So why is it that so many of us miss this? Because we don’t understand the connection between saving and dreaming.&nbsp;



That’s why we’re going to do something you might not expect: We’re going to talk about how you dream. Because how you dream has everything to do with how you save. I dig into this in my book Know Yourself, Know Your Money. Here’s an excerpt from the book that will help you learn how to save money in 2021.&nbsp;&nbsp;



<h3>The Connection Between Saving and Dreaming</h3>



We all have excuses or reasons why we don’t save. I hear them all the time in my work. Let’s look at the most common reasons for not saving and what’s really at the root of them all:&nbsp;



<ol><li>You don’t make enough money.&nbsp;</li><li>You spend more than you earn.&nbsp;</li><li>You’re weighed down by debt.&nbsp;</li><li>You grew up in a money classroom that makes saving seem impossible or unimportant.&nbsp;</li></ol>



Do any of these sound familiar? Do you struggle to make ends meet each month, let alone put savings away for an emergency? Is savings even on your radar? These reasons can sound reasonable, but let’s take a closer look at what’s really going on.&nbsp;



One of my friends grew up in the Unaware Classroom. Her parents never talked about the importance of saving money, so she never worried about doing it. She had made a decent salary as a writer her entire career, but after a decade, she had nothing to show for it—no savings at all. Then one day she had a medical emergency that put her thousands of dollars in debt. She didn’t know that could even happen until those bills started rolling in. As she faced the reality of what it would take to dig her way out of debt, she knew two things: Her ignorance about not saving was costly, and she never wanted to be in that position again. That’s when she realized she needed a plan for her money.&nbsp;



If you’re reading this book and don’t have any savings, know you’re not the only one. Forty-seven percent of Americans have less than $1,000 saved for an emergency. But also know that not having any savings is a warning sign for two big problems. The first problem is that your house isn’t in order. You’re not prepared. Even if things appear to be going well, if you don’t have a plan for your money that includes savings, it’s only a matter of time before the unexpected hits and you have a major problem. Life is going to throw you some curveballs: a medical emergency, job loss, the air-conditioning unit goes out, a storm damages your home, you hit a deer on the way to work. Having an emergency fund isn’t optional. At some point you’re going to need one. If you don’t have any savings today, the time to get your house in order is right now.&nbsp;



But not having savings is also a warning sign of a second problem: that you’re not tuned in to your dreams. Most people don’t think about how deeply connected saving and dreaming are. But if you’re not saving, it means you’re not working toward any of your dreams. You’re likely just floating from job to job and city to city instead of steadily working toward something meaningful. And when that happens, it’s usually because you have no clue what your dreams are. It’s also possible that you might be saving a little here and a little there, but it’s going to take tapping into your dreams to see real progress.&nbsp;



Dreams are actually crucial to your financial life because they help you see what you value and motivate you to save for the long haul. Unless you’re a die-hard saver, saving for the sake of saving isn’t meaningful. But when you really, truly want something, no one can stop you from saving for it and working hard to make it happen. If you want to live out your retirement dreams, you’ll happily put away 15 percent of your income each month. If you care deeply about fighting poverty in your city, you’ll find more ways to cut your expenses so you can donate regularly. If you dream of adopting a child, you’ll sacrifice for years to bring them home. Why? Because saving gives you the freedom to follow your dreams.&nbsp;



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Reprinted with permission from Ramsey Press from <a rel="noreferrer noopener" href="https://www.rachelcruze.com/store/product/know-yourself-know-your-money-book" target="_blank">Know Yourself, Know Your Money</a> written by personal finance expert and two-time #1 national best-selling author Rachel Cruze. You can purchase Know Yourself, Know Your Money at <a rel="noreferrer noopener" href="https://www.rachelcruze.com/store/product/know-yourself-know-your-money-book" target="_blank">RachelCruze.com</a> or wherever books are sold.&nbsp;



Photo courtesy of Rachel Cruze

An excerpt from Rachel Cruze’s new book, ‘Know Yourself, Know Your Money’

An excerpt from Rachel Cruze’s new book, ‘Know Yourself, Know Your Money’ | SUCCESS

What Motivates You to Save Money

What Motivates You to Save Money | SUCCESS

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Stay ahead in business: strategies and insights for success

Fresh out of high school in 1977, I entered the United States Military Academy at West Point. I had no idea how much I would learn or how the journey ahead of me would unfold. My cadet training shaped not only my leadership approach throughout my military service, but also influenced how I run my business today.

My first year, I learned self-defense by hand-to-hand combat training using pugil sticks—heavily padded pole-like training weapons long used in the military. “Stay alert, stay alive!” was a phrase oft repeated when training. That always stuck with me.

At 5 feet, 1.5 inches, every cadet I trained against was bigger, always intimidating to me, but backing out or breaking down were not options. I survived by wholeheartedly embracing “stay alert, stay alive.” That short punchy chant, routinely bellowed at the top of our lungs, would follow me the rest of my life.

As my military career continued through 27 years of increasing responsibility, I assessed the mission of each new organization and the talent on my team. “Stay alert, stay alive!” still ringing in my head, I projected my vision and established precise goals that we could realistically accomplish. Quickly, I recognized in addition to staying alert and alive, I had to add another punchy chant—“Stay real!”

Looking back, I recognize how often I had to start over or reinvent myself because of new missions, teams and relationships. In fact, the two greatest periods of <a href="https://successcom.wpenginepowered.com/article/ways-to-reinvent-yourself" target="_blank" title="Ways to Reinvent Yourself | SUCCESS.com" rel="noopener noreferrer">reinvention</a> for me were commanding as a General Officer in Iraq during one of the most challenging and transformational periods in our army’s history, and retiring from the army and starting my own business.&nbsp;

In Iraq, I was responsible for overseeing an enormous logistics mission during the army’s transformation to a new mode of operating, which required a herculean effort. There were times my vision was larger than our organization’s capability, but I had to discipline myself to listen to my staff, and most important, to listen to my head and to my heart.

When I retired from the military, I didn’t know my clear mission. What direction do I move professionally? What kind of organization do I want to be part of?&nbsp; Even, where do I live? At the chagrin of some, I decided to become a conference keynote speaker on <a href="https://successcom.wpenginepowered.com/article/the-leadership-secret-to-supercharging-your-team" target="_blank" title="The Leadership Secret to Supercharging Your Team | SUCCESS.com" rel="noopener noreferrer">leadership</a> and build my own company.

Although a company of one, I’ve developed an ambitious and very specific five-year plan. Each year, I “stay alert” by reviewing my client base and financial position, and assess how and where I am making a difference. I “stay alive” by intentionally adjusting next year’s plan based on my assessment, and I “stay real” about the demand for my services. Four years into my first five-year plan, I have made some mistakes, enjoyed some successes, and learned from both.

One of my favorite television shows is <a href="https://www.amazon.com/gp/product/B0051ICHB6/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B0051ICHB6&amp;linkCode=as2&amp;tag=sm0fe-20&amp;linkId=FU5VHH5BALNS3JSA">Shark Tank</a>. While I don’t always agree with all of the sharks or their tactics, what I enjoy about the show is how it challenges me to listen, placing myself on both sides of the tank—sometimes pondering what a shark will offer (both in guidance and resources) and then wondering how I, as a guest on the show, would present my product or service.&nbsp;

The entrepreneurs who secure a partnership come prepared and are vested in and passionate about their product. They stay alert and don’t become emotional and unreasonable when the sharks question them or offer advice. As entrepreneurs we are invested financially and emotionally in our businesses, so it makes sense to heed advice from others who have been there. I stay alert to the actions of those around me, taking in their successes and failures, and then apply what makes the most sense for realistically shaping my <a href="https://successcom.wpenginepowered.com/article/what-business-model-is-right-for-you" target="_blank" title="What Business Model Is Right for You? | SUCCESS.com" rel="noopener noreferrer">business model</a> as I move forward.

When you approach the next challenge that comes around the corner, whether in your business or personal life, I believe you will be more successful by remembering to “stay alert, stay alive, and stay real.”

Fresh out of high school in 1977, I entered the United States Military Academy at West Point. I had no idea how much I would learn or how the journey

Fresh out of high school in 1977, I entered the United States Military Academy at West Point. I had no idea how much I would learn or how the journey | SUCCESS

Stay Alert, Stay Alive: My Mantra for the Military Battlefield and Boardroom

Stay Alert, Stay Alive: Mantra for Battlefield & Boardroom

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Why It Pays to Know Your Money Mindset

What Motivates You to Save Money

Stay Alert, Stay Alive: My Mantra for the Military Battlefield and Boardroom