This time, I have the pleasure of sitting down with Rachel Luna, an incredible financial health coach and author. Rachel and I delve into a conversation that’s close to both our hearts: mastering money.
We start by tackling the common myth that earning more money automatically leads to wealth. Krisstina shares her personal journey from financial instability to financial freedom, emphasizing how focusing solely on income can trap us in a cycle of earning and spending without truly building wealth. We both agree that understanding the difference between income and wealth is crucial. The key lies in creating a personal balance sheet, which serves as a financial health checkup, showing where you stand and helping you make informed decisions.
Krisstina highlights the importance of knowing your financial freedom number – the amount of passive income needed to cover your lifestyle costs. This number acts as your North Star, guiding your financial decisions and strategies. We discuss practical steps to begin building wealth, such as starting with small, consistent investments, even if you’re currently living paycheck to paycheck. This approach helps you create a strong financial foundation over time.
A significant part of our conversation focuses on mindset. Rachel and I explore how our beliefs about money shape our financial reality. By developing a healthy money mindset, we can break free from limiting beliefs and start making choices that lead to financial success. Rachel’s story is a testament to this, as she transforms her financial situation by changing her mindset and adopting disciplined financial practices.
I hope you find this episode as insightful and empowering as I do. Remember, wealth is a journey, and every step you take brings you closer to financial freedom.
Takeaways From This Episode:
- High income does not equal wealth; it’s about what you keep and invest.
- Creating a personal balance sheet is the first step towards understanding your financial health.
- Focus on building wealth, not just increasing income.
- Start with small, consistent investments to build a strong financial foundation.
- Your mindset plays a crucial role in achieving financial success.
Here Are Five of My Favorite Quotes:
- “You don’t earn your way to becoming a millionaire; you spend your way there.”
- “Wealth is available to everyone, but we have to step on the scale and do the work.”
- “The biggest money lie is that high income equals wealth.”
- “Expenses will always rise to match income if you don’t master your spending.”
- “Your financial freedom number is your North Star; everything you do should align with it.”
Time Stamps:
- [00:00] – [03:23] Introduction to the episode topic on wealth creation and financial freedom. Krisstina Wise introduces herself and the key concepts to be discussed.
- [03:23] – [07:07] Rachel Luna introduces Krisstina Wise, detailing her background and expertise in financial health coaching and wealth creation.
- [07:07] – [13:18] Discussion begins on the difference between income and wealth. Krisstina explains the common misconceptions about high income equating to wealth.
- [13:18] – [21:38] Explanation of the “income game” vs the “wealth game”. Krisstina breaks down how focusing solely on income can trap people in a cycle of earning and spending.
- [21:38] – [27:17] The importance of having a personal balance sheet is discussed. Krisstina emphasizes how this tool is crucial for understanding one’s true financial position.
- [27:17] – [35:40] Conversation on how to start developing long-term wealth regardless of income. Krisstina provides practical steps for building wealth, even when starting from a tight financial situation.
- [35:40] – [41:35] Discussion on guilt and shame around spending money, particularly on personal health and well-being. Krisstina addresses how to reconcile necessary expenses with wealth-building goals.
- [41:35] – [47:43] The concept of trade-offs in personal spending is explored. Krisstina explains how to make conscious choices about where to allocate money based on personal priorities.
- [47:43] – [54:20] Conversation about how to break the cycle of living paycheck to paycheck. Krisstina provides strategies for creating financial breathing room and building wealth over time.
- [54:20] – [59:39] The importance of creating margin in your finances is discussed. Krisstina explains how this concept is crucial for wealth building and financial freedom.
- [59:39] – [01:06:18] Final thoughts on making wealth accessible to everyone. Krisstina emphasizes that wealth creation is possible for anyone willing to learn and apply financial principles consistently.
