55. Budgeting and the Psychology of Money with Sarah Blanchfield

Sarah Blanchfield is a financial therapist and the founder of My Bulletproof Budget, where she’s on a mission to disrupt the finance industry by focusing on behavioral economics and how it can be used to heal people's relationships with money. On this episode of CFO at Home Sarah and Vince discuss how her behavior based approach to the subject of money differs from more traditional ones, the value of keeping your budget simple, tips for getting your partner’s buy-in to the budget, and more.

Key Takeaways:

• Traditional Finance/Economics teachings are based on math and “making the numbers work”. Behavioral Finance/Economics is more focused on how people actually make financial decisions and behave with money based on everything going on in their lives.
• • We don’t always make logical decisions with our money
  • It’s OK to let our emotions play a role in financial decision making
  • • Consider the role money plays in living a “happy life”
    • Standard guidelines for what you should spend %s of your income on are just that, guidelines
  • When developing a plan for your money start by defining your desired emotional outcomes, instead of how much you want to save or spend
• Having a refined budget can free you from having to think about your budget as much
• A key to getting buy-in from your partner on a budget 
• • Keep it simple
  • Highlight the ways that the budget aligns with what’s important to them 

Ways to contact/follow:

• MyBulletProofBudget.com 
• Instagram - MyBulletProofBudget
• FaceBook - MyBulletProofBudget
• PInterest - MyBulletProofBudget
• The Money MythBuster Podcast

Contact the Host - vince@thecfoathome.com