Overcoming A Scarcity Mindset & Saving Six Figures

Chelsea talks with Michela Allocca, author of Own Your Money, about building good money habits, saving six figures, and using apps like You Need A Budget.

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[lulubelle]

Anyone who thinks that having a coffee shop is a calm, low-key job has clearly never worked in service.

[snyzfhs]

Michela described EXACTLY how I've felt about money in my 20s. I was on her end of the extreme - anxiety over spending money, saying no to social events to "save" money (at the expense of saying no to friends, emotional happiness), extreme anxiety over spending on anything impractical or that I did not want to spend, etc. Still working on this because it truly can be a miserable way to live.

[TatexLy]

Also, Michela.. How did you get into a college right after graduating without taking out loans? How were you able to get such a great corporate job right after college? I respect what you've done, but it appears as though your ability to save is in large part by your societal privileges.

[kimroberts]

As someone in my 40s, I still get a lot of value from these conversations. I had a slower start to my professional life as I was chronically ill in my teens and 20s.

[theresagarza]

I worked in a coffee shop for a couple decades. My body is broken & my finances are nowhere near where I need them to live in moderate comfort.

[elizabethnovak]

"I would like to have a quiet life, maybe own a coffee shop" is one of the more delusional sentiments I have come across.

[jlchwalibog]

I am a big fan of TFD because Chelsea so often includes a critique of the context in which we are living: late-stage corporate capitalism. In this conversation I found myself so frustrated by the repeated emphasis on personal choice. Of course we all make choices and are responsible for those. AND, "choosing" to earn more money is not an option for many people who are already working two jobs. Balancing one's necessary expenses with savings may not be possible for a person with a chronic illness in a society that does not provide universal health care. The failure to address these very common problems was really alienating and insulting, frankly.

[eRoTiCCrEaTiOnS]

I really liked her calm voice. I just found it very calming. Also seems she has done a ton of self work on her patterns and habits and I appreciate that. Especially at a young age. I am the same way and making healthy changes at a young age is so hard because it felt like I was alone in doing that. So I am happy for her. 💛 I wish for her continued peace

[Investingcoachw]

Love a transparent video. Growing up low income a scarcity mindset hit me HARD. Even after having every major life event go right the last ten years I’m still working on shaking the scarcity mindset. Keep putting in the work and you’ll slowly heal from trauma.

[priceprice_baby]

I saved 6 figures by my early 20s too. Don't know why people think it's so hard. All I had to do was get a full scholarship to university, have my parents help with living expenses and win a reality TV show. Easy. :-P

[lexm]

These videos would be great if concrete advice was given step by step rather than generic fluff. Of course it’s easier to save 6 figures when you earn a six figure salary which the majority don’t.

[mccolk]

I would love it if you interviewed @accordingtoNicole. She saved $100, 000 by the time she was 25 and bought a house, but she came from a low-income background. She has a really unique and relatable perspective. I love her channel.

[AsdrubaleRossi]

My parents were struggling with money, and sometimes that was a big source of unhappiness, because it was creating practical problems. This is because they were maintaining a lifestyle that they couldn't really afford. What I do instead, is keeping a minimal lifestyle and only strategically spend for the things that I know will make me happy and always compare how happier will each expense make me, against how expensive it is. After the activity is over, I ask myself if it was worth it, and I learn from past mistakes.
Then after some months, I check how much money I have in the bank, and if it increased a lot, it means I can worry less about spending, if it increases only a little, it means I have to spend less, to make sure I can sustainably keep this lifestyle.
Some examples:
Invite many friends over and offer dinner for everybody - yes, it makes me happy. Go to the club and get drunk by buying drinks there - no, because I don't like that. Have a fancy hotel on a trip - no, it has a massive cost and doesn't impact happiness that much. Spend 100-200 euros per year in board games - yes, because I know I will play them over and over with friends.

[ariwilliams]

I honestly feel so seen right now. I'm an individual who also has intense OCD feelings around money and struggle with hoarding it. Seeing Chelsea so successful and positvely work on her goals and accomplishing them. Everyday feels so tiring but seeing someone on the otherside of things makes me feel so motivated. Loved this.😊

[emilycrimmins]

Thank you for this episode. I am going into 6 years at a job that I got after my college graduation. I was privileged to be able to purchase a small home in my hometown with a low cost of living. But I feel like I've maxed out my pay at work (grant employee) with no upward mobility at my employer. I've decided as though I love my job and all the good it does (natural resources), I don't like the manager and I am making moves to find work elsewhere. It took me a lot of self reflecting to understand that though I like my job, it is no longer serving me, teaching me, etc and that it's ok to move on.

[poonamkumari-ktwc]

Please start again “making it work” videos.They were awesome. It’s a request. Please consider it.

[andymarion]

Great video! I thank myself for never giving up even when it was very hard I kept pushing through until I made it out. My advice is that If you do your own investing, have you ever thought whether you should turn things over to a financial advisor? If you have significant assets, you have probably felt anxiety when making choices with your money. Perhaps you sensed that you might make better investing decisions if you knew just a little more and could invest without emotion. If this is the case, consulting a financial advisor makes perfect sense.

[risamaeve]

god, all this stuff about time tracking and documenting the value that you're adding makes SENSE especially for people who are career oriented and driven, but just listening to it made me exhausted. i don't want to do any of that!!! the constant self surveillance and productivity and always needing to prove worth... i hate capitalism basically, how can i have a job where i can, y'know, contribute to my community but not have to constantly be micromanaging my own output?

[ovananda]

I wish Michela discussed the steps between college and the >63K job right after college. Did she took loans for tuition or how and by whom was that paid? Was she living at home/on campus? All the advices are great, but I need to understand if and how much of it is coming from a place that could be somewhat out of touch. For instance, the comment on the "only 200$" left is all about refrasing and finding where things can be moved within expenses and financial goals; many people have nothing to move around and that 200$ is the final number.

[mchlle]

I feel like this wasn't about what the title promised at all? Just vague platitudes and generic advice you can find in a fortune cookie. I also hate the idea of having to monetize passions or hobbies. It's also very clear that she's very, very privileged. Not very relatable for people who are dealing with financial trauma.