In this episode, Danielle delves into the five essential actions you must cease immediately to uncover joy, happiness, and fulfillment in your financial life, whether in business or your personal affairs. She begins by addressing a notable study from 2010, which observed that day-to-day happiness increased with rising income up to a certain threshold. However, an opposing study conducted in 2021 revealed that happiness continued to climb with income levels well beyond that initial limit. This apparent contradiction underscores the intricate relationship between money and our intrinsic needs, all interwoven with our money mindset.
The Hierarchy of Needs
Danielle draws inspiration from Maslow’s hierarchy of needs, a concept suggesting that humans possess a structured hierarchy of needs, motivated to fulfill them in a hierarchical manner. The foundational needs start at the bottom, encompassing physiological essentials like food, water, shelter, and sleep. These basic necessities are intricately linked to one’s financial situation, with a clear correlation between meeting these needs and financial stability. Progressing upward, safety needs include personal and financial security, health, and protection from harm. Financial security serves as a prerequisite for ascending the hierarchy and reaching one’s fullest potential. Following that, a sense of belonging emerges, with ties to money as it relates to the community and connections within one’s business.
The upper tiers of the hierarchy—esteem needs and self-actualization—are areas where significant attention is often focused. Esteem needs center around earning respect from others, cultivating self-confidence, and achieving a sense of accomplishment. Money plays a pivotal role here, influencing how we are perceived and impacting self-esteem. At the apex of the pyramid lies self-actualization, encompassing personal growth, creativity, and a sense of purpose. This is an arena where business owners frequently invest substantial time and effort as they strive to attain their full potential in their unique entrepreneurial pursuits.
Understanding these needs at their deepest level is crucial for comprehending their intricate connections with our money mindset.
The Five Things You Need to Stop Doing
1. Stop Saying You’re Not Enough: Reframe negative self-talk that undermines self-esteem and self-confidence.
2. Stop Ignoring Your Personal Budget: Establish a personal budget to meet the basic needs of yourself and your family, providing the essential foundation for financial security.
3. Stop Ignoring Your Money Mindset: Recognize the fundamental role of mindset in your entrepreneurial journey. Understand and heal your money mindset, utilizing it in conjunction with financial tools to pave the path toward self-actualization.
4. Stop Trading Short-Term Happiness for Long-Term Fulfillment: Resist the allure of immediate gratification in favor of long-term goals that promise sustained security and happiness. Avoid trading short-term dopamine rushes for enduring contentment.
5. Stop Living the YOLO Lifestyle: Shift your mindset away from a “You Only Live Once” approach, maintaining focus on your long-term objectives and avoiding distractions.
What Can You Do About These Five Things?
So what can you do to step away from these bad habits? When we stop saying I’m not enough, wonderful things can happen so start reframing those negative thoughts. Episode 117 of Entrepreneur Money Stories does a deep dive into this topic. Secondly, stop ignoring your personal budget and plan out a budget so that you know what you need to survive and thrive. If you haven’t set a personal budget before, click here for a template. A personal budget is also going to help you in your business too- it takes the guesswork out of how much you should pay yourself in your business. Healing your money mindset is a common thread through all of the above action steps. Understanding and healing your money mindset gives you as an entrepreneur the tools you need to ramp up your business to meet your self-actualization journey.
[03:20] The hierarchy of needs
[10:42] The five things you need to stop doing right now
[15:54] What can you do about these five things?
Connect with Danielle:
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Website | Kickstart Accounting, Inc.
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