The Psychology of Financial Freedom

**Jay Shetty** (0:00)
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Hey, everyone. Welcome back to On Purpose. I want to start this episode by saying just two small little words. And when I do, I want you to notice in your mind and in your body what feelings come up for you. Here we go. The words are financial literacy.
Look, I know for many of us, even just hearing the word finances can cause a lot of anxiety. Maybe you feel overwhelmed. Maybe you feel behind. Maybe you want to just keep pushing off learning about financial literacy for a little while longer. Wherever you are, I get it. But here's my take. Financial literacy isn't about learning how money works. It's about learning how you work around money. Think about this. If I asked you what your relationship with money is like, how would you honestly answer? Most of us have never even thought about that question before. We talk about relationships with our partners, our family, our friends, and even ourselves. But very few of us stop to consider that we also have a relationship with money. And whether that relationship feels healthy, anxious, avoidant, or secure, often shapes our lives far more than the actual number sitting in our bank account. When most people think about financial literacy, they think it's just about learning how money works. They think it's only about budgets, investing, debt, taxes, retirement accounts, or compound interest. But what often gets ignored is the more human, emotional side of financial literacy. Because at the end of the day, you're not just a number, and you can understand every investing strategy in the world. But if you don't understand the psychology behind your financial decisions, you're not truly seeing the full financial picture. The interesting thing is that most of us were never taught how to build a healthy relationship with money. Maybe we were taught how to earn it, but not how to grow it, or taught how to spend it, but not how to manage it. And long before we ever received our first paycheck, opened our first bank account, or paid our first bill, we were already learning lessons about money without anyone ever sitting us down to teach us. So much context goes into your relationship with money. Maybe your parents argued about money behind closed doors. Maybe they never talked about it at all. Maybe every purchase was followed by guilt. Maybe you constantly heard, we can't afford that. Or maybe money was used to celebrate, to apologize, or to show love. Whether we realize it or not, those moments became our first financial education. Long before we learned how money works, we learned what money feels like. Psychologists call these money scripts, the unconscious beliefs we develop in childhood that quietly shape the way we save, spend, invest, avoid, and worry about money for the rest of our lives. What's fascinating is that many of us are still living by financial rules we never consciously chose. We simply inherited them. And until we become aware of them, they'll continue making decisions on our behalf.
So today, I don't just want to talk about money. I want to talk about the psychology behind it. I'm going to walk you through the five things I've learned that have completely changed the way I think about earning, saving, spending, and building wealth. Because I don't believe financial freedom begins when you make more money. I think it begins when you understand your emotional attachments connected to money. And once you understand that relationship, almost every financial decision starts becoming a little bit clearer. This episode of On Purpose is presented by Ultra Running. We all benefit from having a little more space, so do our feet. That's why Ultra Running shoes feature Ultra Fit design, giving toes more room for comfort, balance, and strength. They're perfect for running, walking, or hiking. Any pace, any level, they feel right from the first step. Go to ultrarunning.com/onpurpose and use code PURPOSE10 for 10% off. That's ALTRARUNNINGCOM forward slash On Purpose. Stay out there. Here's the first thing I want to explain. Your very first financial advisor ever was simply your childhood. I want you to think back to your childhood for a moment. Not to your first paycheck or your first credit card, but much earlier than that. Think about the house you grew up in.