Did you know that only two to four percent of women-owned businesses make it past the seven-figure mark? Barbara Huson joins us today to share what keeps women from breaking through that six and seven-figure ceiling. As the leading authority on women, wealth, and power, Barbara explains the differences between men and women when it comes to processing financial information. Barbara gives three efficient, straightforward tips that we can do right now to change our wealth code and start our investing journey. As you’ll learn, creating wealth is really about loving yourself first and finding the connection between your brain and your mind.
Women, Men and Money
Barbara continued to let her ex-husband manage the money because she was terrified and intimidated by finances. What she soon found out, however, was that: if you don’t deal with your money, your money will deal with you. Barbara’s money troubles had only just started. Her ex eventually fled the country and left her with millions of dollars in tax bills and illegal deals. And her father wouldn’t lend her any money. That’s when Barbara knew she had to get smart about money—if not for her own self, for her three daughters.
I’m sure there are women who can relate to staying in a situation because they’re so scared to look at the money. And it’s so much easier—whether you’re a business owner or not—to simply hope and pray that there’s enough money in your bank account. You don’t want to look at it for fear of the amount. I know because I experienced just that. Those of you who follow me already know that I lost everything in 2008 and filed for bankruptcy. But I changed my financial habits and understanding of finances, and ultimately grew my business to seven-figures. It is so possible for you to scale your business the same way.
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Like Barbara, I believe that when you make a true commitment, the universe conspires to help you reach your goals. Now, at that time, Barbara was working as a journalist for the San Francisco Business Times. She was hired for a freelance project to interview wealthy women who were making six- and seven-figures. And what she discovered is that only one to two percent of women owned businesses make it past the seven-figure mark. She also found that the common denominator among women who made six- and seven-figures was fear. All of the women struggled with fear, self doubt, scarcity and imposter syndrome. Despite the fact that these extremely successful women were terrified of people finding out about their money fears, they didn’t let that fear stop them—they felt the fear and did it anyway.
Additionally, Barbara found that men and women process financial information differently. Men are performance oriented where women are relationship oriented. Meaning women often think: how can I help others with my money? When it comes to women versus men making money, looking at numbers, and investing, men see investing as a challenge where women see investing as a threat. The good news, however, is that women make better investors because we are more conservative, long term investors compared to men.
In This Episode You’ll Also Learn:
- [01:00] All about Barbara Huson.
- [03:00] Barbara speaks about her background and the experience that made her think differently about money and wealth.
- [06:30] What it means to be a financial therapist.
- [08:50] How women can establish the four pillars of wealth.
- [10:15] Barbara reveals her definition of wealth and the characteristics that wealthy women have in common.
- [14:45] The inspiration behind Rewire For Wealth.
- [17:55] Why men have an easier time with their money when compared to women.
- [21:05] The three steps to learn about investing.
How Women Can Create Wealth
Barbara believes there are four prongs to wealth creation. There is the outer work of wealth creation and wealth management. For example, this translates to an external understanding of financial terms, principles and types of accounts. There is the inner work of wealth creation and wealth management—that is, the psychological and emotional work you need to do to effectively manage your money. There is the higher work of wealth creation and wealth management, meaning the spiritual aspect. When women are financially stable, for example, we want to make more money, but that’s not what drives us. We want to do bigger work and make an impact with our money. Lastly, there is the deeper work of wealth creation and wealth management, which is how the brain and mind work together.
Watch to learn about the connection between neuroscience and money.
All of this boils down to neuroscience. And when Barbara brought neuroscience into her work beginning in 2015, everything changed. She made the differentiation between the brain and the mind. For example, the brain controls your behavior, but the brain is shaped by the mind. The brain is a physical organ, but the mind is a non-physical entity and the source of our thoughts and feelings. What flows through the mind shapes the brain, and when you can change your mindset, that’s when transformation and magic happen.
Where Barbara thrives is as a financial therapist, combining financial education and mastery with neuroscience. She is also a healer. Barbara’s work centers on resolving the trauma women feel around money. “There are many, many who cannot be courageous,” says Barbara. “Our brains, after all, are developed for one purpose: survival.” And when anything (i.e., finances) seems dangerous or threatens our safety, we go into fight, flight, or freeze mode. Barbara works on unblocking what prevents women from having the courage to deal with their finances and create wealth. Because once women uncover their fear and work through it, we create different outcomes for ourselves.
Three Levels of Financial Development
Barbara breaks down her definition of wealth into three levels of financial development:
1—Survival—Not having enough
2—Stability—Having just enough
3— Affluence—Having more than enough wealth and knowing it
Because wealth without wellbeing… what’s the point? The term, “wealth” comes from the Latin root weal, which means well being. And as we create wealth, money becomes a tool for creating a meaningful and gratifying life rather than a stressor or distraction. That is, we experience financial and total well being.
Tips on Investing
That total well being has personally led me to creating wealth through investing. I find investing fascinating, and I’m also looking at investing in real estate. Yet I feel like an anomaly in my peer group because so few women invest. We simply don’t understand investing because it feels overwhelming. But it doesn’t take a lot of time or money to get smart and learn how to invest. Barbara says it’s so much simpler than you think, and it’s never too late to start.
Barbara’s recommendations on investing and creating wealth include three small steps taken consistently—which create results:
1—Every day read something about money. Pick up a money magazine instead of People when you’re waiting in line at the store. So much of getting smarter about money is familiarizing yourself with the jargon and trends.
2—Every week have a conversation with someone who is good with money. It’s the secrecy and silence around women and money that keep us stuck.
3—Every month save automatically. Set up an automatic transfer from your checking to savings account. You don’t miss what you don’t see, and through compounded interest, those savings will add up. Because our biggest risk as women is that we will outlive our money. You can invest in stocks, bonds and real estate to help your money grow faster.
Here are a few of my favorite takeaways:
- Only two to four percent of women-owned businesses make it past the seven-figure mark.
- When you look at your deepest purpose, that will motivate you to do the hard work.
- The brain controls your behavior; when you can understand how your thoughts shape your brain, wealth can happen very quickly.
- Wealth means you have more than enough, and you know it.
About Barbara Huson:
Barbara Huson (previously known as Barbara Stanny), is the leading authority on women, wealth and power. As a bestselling author, financial therapist, teacher & wealth coach, Barbara has helped millions take charge of their finances and their lives.
Barbara’s background in business, her years as a journalist, her Master’s Degree in Counseling Psychology, her extensive research, and her personal experience with money give her a unique perspective and makes her the foremost expert on empowering women to live up to their financial and personal potential.
Barbara is the author of 6 books and her 7th book, Rewire for Wealth, was published in early 2021.
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