Unlocking your Financial Freedom: Grow your Bank Account NOT your EGO!

Unlocking Your Financial Freedom: Grow Your Bank Account, Not Your Ego

Welcome Peak Performance seekers to our AI for PI (Amplifying Insights for Performance Improvement) Newsletter!

The goal of this week’s newsletter is to help you find ways to grow your bank account and your investments to help you achieve peak financial performance!

Our current environment often equates success with outward appearances. How many times do you judge people based on the car they drive, the way they dress and the neighborhood they live? Some people that we think are thriving and successful are flat out BROKE! While others that may look poor or look like they are just making it are millionaires.

Let’s dive into 5 reasons why keeping a low financial profile can provide you with higher rewards

1. Escape the Hedonic Treadmill

What the heck is a Hedonic Treadmill?

Constantly upgrading your lifestyle leads to a cycle of permanent dissatisfaction, a phenomenon that experts have termed as the hedonic treadmill.

It’s like running on a treadmill where you’re basically running in the same spot relative to the room no matter how fast or slow you run. The same thing happens with your happiness. No matter how much more money you make or how many new things you buy, your overall happiness tends to stay the same. 

Think about all the milestones you’ve hit, getting a promotion, buying a nicer car, moving into a better neighborhood…a new set of standards starts to surround you. 

It’s like playing a game where the rules keep changing. 

This isn’t just a feeling or a game; it’s backed by science.

Studies show that once basic needs are met, such as paying for your living expenses, food, and medical care, additional wealth doesn’t significantly increase happiness.

We quickly adapt to our new level of wealth and what that means is that the new level of wealth doesn’t feel like a big improvement and starts to feel like the new normal and we start wanting even more to gain that initial excitement. 

You buy a new car, and it feels amazing but then your friend buys a new car too that’s cooler than yours and that amazing feeling is now gone, and you want something else, and the desire for more sets in.

And that cycle repeats itself over and over for everything we ever purchase. It doesn't just happen with cars. It happens with phones, homes, clothes, really everything gets us into that mindset.

Social media amplifies this pressure, influencing many to spend beyond their means to match others’ perceived lifestyles.

A report from CreditCarma said that according to the study 26% of Gen Z and 22% of millennials say that they’ve been influenced to spend money they don’t have on travel after seeing other people’s vacations on social media.⁵

By choosing to live a modest lifestyle, you are simply stepping off that treadmill and telling yourself… “I’m not buying into this”. 

Step away from the FOMO!!! When you feel FOMO setting in…STOP! Don’t act…make yourself stop and think. I always stop myself before making any purchase and ask myself…

Do I really need this item?

What is this item going to do for me?

Most of the time I end up not purchasing or for those items I end up purchasing, I wait and think about it first. If it’s not a hell yes, then it’s a NO!

What you will find is that inner peace in not making that decision, not feeling pushed, and not competing with others therefore getting you off this financial treadmill that could be detrimental to your success. 

2. Stop trying to impress people and choose personal & financial freedom

When I first started working in my professional career, I could feel the pressure coming in. 

Having to look the part, wear designer clothes, purchasing the latest trends, having to have the latest iPhone, looking at what type of car I drove, and more. 

It’s natural for you to want to fit in. Especially if you’re single, you want to impress a potential partner.

It can become overwhelming and stressful in its own right. 

When you have this state of mind, you’re spending more money than you need to and often times have available, just to look successful. 

I would spend more money trying to look successful and impress people I really didn’t even like. My bank account showed otherwise. No one could see the difference other than me. 

On the outside I looked like I had it all but on the inside, I was not happy and always worried about my finances. 

I saw my parents manage money very badly and vowed I would never be in that situation…ever…no matter what it took. 

And here I am spending money just to look the part. 

I was on the treadmill and always thinking…I’m young, I’m doing well, I’ll only get promoted and make more and this will all fix itself. 

I was stuck in the mindset of

-earn money

-get promoted or move up the corporate ladder

-spend it on things I wanted, but didn’t need

-expect happiness

I realized that spending to look successful didn’t align with my personal or financial goals. I wasn’t happy and I was becoming someone I wasn’t. 

Shifting focus from luxuries to investing in education, skills, and personal growth transformed my financial situation. By prioritizing financial security, pursuing a job I enjoy, and exploring passions I’d put off, I gained the freedom to make choices without being held back by debt or societal pressure. This empowerment far surpasses the temporary thrill of new purchases.

I will genuinely tell you, that freedom of empowerment, that freedom of not being held by debt, that freedom of not being held by what others thought of me is so liberating and allowed me to walk away from people and things that no longer serve me. 

This completely beats the feeling you get from buying something new. 

I don’t get excited anymore about buying something, I get the opposite effect because I don’t want to have to spend money. When my iPhone or my laptop needs to be replaced, I get really annoyed rather than excited to have new features. 

I’ve moved from earning money, spending it and hopefully gaining happiness to

-Earning money

-Investing it to make my money work for me

-Only purchasing the things, I need. Not because I don’t have money after investing or I’m cheap, it’s because I don’t really need much to make myself happy anymore. I’m not looking to impress anyone.

3. Avoid being stuck in Survival Mode

Albert Einstein wisely said, “A calm and modest life brings more happiness than the pursuit of success combined with constant restlessness.”

In today’s world, maintaining a calm and modest life is essential for peace of mind and reducing financial anxiety.

Living beyond your means traps you in survival mode, making it difficult to take breaks, explore new opportunities, or cope with job loss.

Sometimes, the stress makes it difficult to sleep at night. You’re stressed about how you’re going to pay for it all. I like the feeling of putting my head on the pillow at night knowing I’m ok.

When your income is outpacing your expenses, this brings you peace of mind and flexibility, allowing you to take risks, try new things, or simply take time off if needed.

A study by the American Psychological Association said that 72% of Americans feel stressed about their money.¹

Another report by the Global Financial Literacy Excellence Center and the FINRA Investor Education Foundation found that even before the COVID-19 pandemic.²

· Over 60% of American adults felt anxious when thinking about their personal finances.

· Approximately 50% of respondents reported feeling stressed when discussing their finances.

· Women (65%) were more likely to experience financial anxiety than men (54%).

· Factors contributing to high financial anxiety included low financial literacy, insufficient income, high debt, and money management challenges

In a Bankrate survey from March 2024, 47% of U.S. adults reported that money negatively impacted their mental health, causing stress.³

If you get a bonus or a pay raise and you buy a new house or move to a more posh apartment, and it takes up 40% or more of your pay, you cannot afford to lose your job, take a break or consider other opportunities. 

Purchasing higher end products such as a luxury car such as a Mercedes or BMW not only increases the amount you’re paying for the car itself, it also increases overall expenses that are higher because of a having a higher end car. Things like maintenance, parts, repairs, can be 3-5 times more expensive on a luxury car than a modest car. 

These are the types of situations that make you stuck in survival mode.

Especially in today’s recent market with so many job losses. Creating a modest lifestyle where you’re making more than you have committed to spending can give you the freedom to search for the right job for you instead of taking the first job you can get. 

Focus on keeping what sparks you joy!

By doing this, you are not only clearing out your physical clutter but also mental clutter by creating space for mental clarity and emotional well-being.

You can provide the same philosophy to your own finances. It’s not just about saving money, but It’s about the stress that maintaining this high-status lifestyle that puts you in survival mode. The more things you have, and the more your finances are strained, the more that you are living in survival mode. 

4. Build True Wealth by being genuine

True wealth isn’t about flaunting it. It’s about the confidence and security it brings. Many wealthy individuals understand this, choosing simplicity over showing off. Authenticity fosters genuine relationships and mental clarity.

Authenticity is the cornerstone of lasting relationships, whether romantic or professional. Don’t base your self-worth on external validations or material possessions.

An interesting study on relationships and money stated that 25% of people have pursued a romantic relationship for money. And over half of those people 50% misrepresented finances to attract a partner. Interestingly, 35% of Gen Z and 25% of millennials research their date’s job to gauge their income, aiming to align lifestyles before getting too involved.⁴

If you base your self-worth on external validations, or material things, or the amount of money you have, you risk attracting people who only value you for your superficial traits. 

Present your true self in all aspects of your life. Show off the person that you are on the inside, not just the outside—your genuine qualities and inner wealth will build meaningful, resilient relationships.

5. Enhance Mental and Physical Well-being

Maintaining a low financial profile not only benefits your bank account but also significantly improves your overall well-being.

Here’s how:

Reduce Stress and Anxiety

Living modestly can greatly reduce the stress and anxiety that come from financial pressures. Instead of mindlessly consuming and accumulating, you become more deliberate about your choices and purchases.

Sell or donate the things that you’re not using.

When you’re not constantly striving to keep up with societal standards of what others say success is, you experience less financial strain. This translates to fewer worries about debt, bills, and financial instability, leading to a more peaceful and relaxed state of mind.

Improve Physical Health

Financial stress can take a toll on your physical health, leading to issues such as high blood pressure, insomnia, and even heart problems.

By keeping a low profile and focusing on financial stability, you can alleviate these stressors, leading to better physical health. You’ll find it easier to maintain healthy habits such as regular exercise, proper nutrition, and adequate sleep when you’re not burdened by financial worries.

Final Thoughts

Keeping a low financial profile can significantly enhance your financial health and personal health and happiness. By escaping societal pressures, regaining freedom of choice, embracing authenticity, and building true wealth, you’ll find greater rewards and lasting fulfillment. And most importantly, this type of mindset will take you to peak performance!

Stay focused on what truly matters and watch your bank account—and your happiness—grow. 🌟💰 #FinancialFreedom #AuthenticLiving #Happiness #LowProfile

Three things to ALWAYS remember:

Be CONFIDENT!

Be EMPATHETIC!

AND ALWAYS HAVE PASSION!!!!

References:

1. Financial Stress: How to Cope (verywellmind.com)

2. Large Number of Americans Reported Financial Anxiety and Stress Even Before the Pandemic | FINRA.org

3. Money And Financial Stress Statistics | Bankrate

4. Gen Z and millennials couples are breaking up over money, study finds - Intuit Credit Karma

5. Young Americans want a summer of fun, no matter the funds  - Intuit Credit Karma