PDF Summary:You Are a Badass at Making Money, by Jen Sincero

Do you ever feel financially stuck, unable to make enough money to live the life you want? Do you feel like a lack of money is holding you back from reaching your goals? According to Jen Sincero in You Are a Badass at Making Money, the key to breaking out of a financial rut is changing the way you think about money. She argues that by ridding yourself of underlying, limiting beliefs about money, identifying your aspirations, and trusting in the universe, you can become wealthy enough to live the life that reflects your best, most authentic self.

In this guide, we’ll discuss Sincero’s advice on identifying your unconscious beliefs about money and thinking more optimistically about your finances. In our commentary, we’ll explore some financial strategies you can use to shift your mindset around money, along with some alternative methods for achieving financial success.

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Step #4: Write a positive, empowering statement based on what you discover from your inquiries. Speak it out loud so you can feel its emotional effect. For example, your new statement could be, “I decide how money helps me grow and change.”

Cognitive Behavioral Therapy Techniques for Combating Negative Thoughts

Sincero’s process for reworking subconscious thought processes aligns with two commonly used practices for reframing negative thought patterns in cognitive behavioral therapy (CBT). First, her method of interrogating negative views through questioning is often used by therapists and teachers to reveal, examine, and deconstruct hidden beliefs or thought processes. Typically, this method involves a dialogue between two or more people, but Sincero suggests that you create a dialogue between your conscious self and your subconscious self.

The technique likely derives from Socratic questioning, a practice first developed by the ancient Greek philosopher Socrates. Socratic questioning involves asking a sequence of questions in an open-ended format.

Sincero’s process also reflects the CBT technique of reframing negative thoughts. This technique involves three steps: First, you have to notice the unhelpful thought, as Sincero instructs at the beginning of her process. To do this, it’s helpful to know some common types of negative thoughts. For example, you might think of certain situations as all bad instead of seeing the silver lining. Or, you may expect the worst-case scenario in every situation.

Once you learn some of your unhelpful thought patterns, CBT advises that you practice noticing and naming them whenever they arise. When you notice these thoughts, don’t just accept them—check them by examining the facts of the situation (perhaps through Socratic questioning). Finally, reframe the thought from something negative to something neutral or positive. This is similar to Sincero’s final step of writing an empowering statement and speaking it aloud.

Beliefs About Money That Hold Us Back

Now that we’ve examined the role the subconscious plays in our perceptions of and behaviors related to money, let’s take a look at a couple of examples of subconscious negative beliefs about money. Sincero asserts that many of us share these beliefs, as they’re a common part of societal messaging about money. We’ll also discuss her counterarguments for these beliefs.

Belief #1: Money Is Wicked and Immoral

According to Sincero, our society views money as something that’s inherently wicked. Therefore, it’s seen as immoral to have a lot of wealth. People who hold this belief will struggle to achieve financial success because, as we suggested earlier, when you think of money as bad, it won’t come to you.

To support the idea that money is wicked, people point to unsavory actions and injustices that seemingly happen because money is involved. For example, someone with this view might use a story of a wealthy person embezzling money from his clients to become even richer as evidence that money is evil and leads to immoral actions. However, such examples are the fault of the perpetrators, not the money itself. Money on its own is neutral, and we’re responsible for giving it meaning.

Is There a Link Between Wealth and Discourteous Behavior?

Some research suggests that there might be a link between wealth and faulty morals— several studies suggest that money may affect the morality of people’s behavior. In one 2012 study, researchers posed as pedestrians about to cross the street at a crosswalk. Every driver in a car of the lowest expense tier stopped for the researchers, but only 50% percent of the drivers who had the most expensive cars stopped.

Another study found that thinking about money can make people less helpful. First, participants played a short game of Monopoly with one of the other members of the study. At the end of the game, one group was left with $4000 in Monopoly money and prompted to visualize a future where they were wealthy. The other group ended with $200, and researchers told them to imagine an uncertain financial future.

Then, after being told the study was over, each participant encountered someone on their way out who spilled a box of pencils in a way that appeared to be an accident. In reality, the person spilling the pencils was one of the researchers doing it on purpose. The participants who were prompted to visualize themselves as wealthy picked up fewer pencils when helping clean up the mess.

Finally, another study found that wealth can lead to unethical behavior: Participants who considered themselves comparatively wealthy took more candy from a jar intended for children.

Belief #2: Being Wealthy Means Taking From Others

Another common negative belief about money Sincero identifies is that becoming wealthy requires taking resources from someone else. This belief makes us feel guilty about making a lot of money.

However, making the money you need to be the best version of yourself doesn’t actually mean taking from others. The idea that it does stems from a harmful scarcity mindset—the false belief that there aren’t enough resources for everyone.

(Shortform note: One way to break free from a scarcity mindset and develop a mindset of abundance is to give to others. For example, you might help a struggling friend pay for their groceries or donate to a favorite charity. Giving to others involves recognizing that you have resources to share, breaking you out of the thought pattern that there’s never enough. It also lifts up others around you and creates opportunities for others to give back to you if you need it in the future. The good feelings you get from giving can also make your feelings and mindset about money more positive.)

In reality, any wealth you accumulate sets you up to help others because money gives you the power to implement beneficial change. For example, wealthy individuals can donate large sums of money to charities, scientific research, and other worthy causes.

(Shortform note: Wealth may give you the power to implement beneficial change, but whether or not you choose to do so depends on your personality, not the wealth itself. In The Total Money Makeover, Dave Ramsey argues that wealth reveals and magnifies your true character: If you’re kind and generous, you’ll be even more so with your wealth. In this case, you’d likely use your money to help others. However, if you’re already deceitful, miserly, or happy to take from others for your own gain, money will magnify these traits as well. Wealth itself won’t make you more generous—instead, it may make you less so.)

Manifest Your Aspirations for Wealth

Once you begin working on the way you think about money, you can begin actualizing the financial success you aspire to. In this section, we’ll discuss three of Sincero’s strategies for financial success:

1. Define the reasons behind your financial aspirations.
2. Believe in the universe.
3. Commit to your dreams.

Strategy #1: Define What You Want and Why You Want It

To achieve financial success, Sincero asserts that you must clearly define why you want the money and what you want it for. Having a general desire to be wealthy isn’t enough, as you’ll likely have to take a lot of risks and push yourself to reach your financial goals. To overcome the fear and difficulty that comes with these challenges, you need something powerful to motivate you to keep going. Having clear reasons for wanting to accumulate wealth will serve as that motivation.

The more specific you can be about your reasons, the more real they’ll seem, and the more emotionally tied to your financial goals you’ll be. As we stated previously, emotions push us to act, so the stronger you feel about your goals, the more likely you are to take actions that make them a reality.

For example, maybe your dream has always been to travel, so you motivate yourself to make money by imagining the joy and excitement you’ll experience when you visit far-flung destinations. You might define this dream further by writing down all the places you want to visit and the things you’ll do there. Or, maybe you’ve always dreamed of opening your own coffee shop and community space. You think about how more money will allow you to fulfill this dream and feel satisfied every day knowing you’re working toward doing something you love. To define this dream further, you might write down some ideas for names for your shop or make a list of the drinks you’ll serve.

Common Reasons for Wanting More Money

If you can’t yet define the specific reasons why you want more money, consider some of the most common reasons according to research from the United States and Australia.

The U.S. Consumer Financial Protection Bureau defines financial well-being based on four characteristics. If you’re not meeting some of these characteristics, then your reasons for wanting more money may center around meeting them:

• You are on your way to reaching your financial goals.

• You have control over your everyday finances.

• You’d be able to manage a financial emergency if necessary.

• You’re able to pay for things that help you enjoy life.

Research from the Financial Planning Association of Australia suggests that there are four main aspirations people have as reasons for wanting greater wealth. Consider whether your reasons may fall into any of these categories:

• Being completely financially independent

• Being able to live an ideal lifestyle

• Having the flexibility to engage in hobbies and interests

• Having more time to spend with loved ones

Once you’ve determined the broad reasoning behind your desire for more money, you can get at the specific details that spark emotion. For example, if you’re a parent, the loved ones you want to spend time with are probably your kids, and you might think of specific activities you’d like to do with them that spark joy for you.

Strategy #2: Believe That the Universe Will Provide What You Need

Once you identify your financial goals and how more money will benefit your life, Sincero states that you must nurture your belief that the universe will provide you with everything that you want. You must always be open to the opportunities the universe is ready to provide for you and have faith that you’ll reach your goals, even if you don’t yet know how.

(Shortform note: How do you place your trust in the universe? According to some experts in personal growth and spirituality, start by accepting helplessness. When you experience difficulties caused by things outside your control, resist the urge to struggle against the situation. Instead, embrace the fact that you can’t do anything to change it. Further, pay attention to nature—notice the beauty, bounty, and interconnectedness of it. You’re part of that harmony, and the universe came together to give you life and your place in it. Finally, trust your intuition. It’s a higher form of consciousness, and it’s directly connected to the universe. It’ll help you navigate through different stages of your life.)

According to Sincero, one of the best ways to engage positively with the energy of the universe is by practicing gratitude. The universe wants you to become the best version of yourself—being grateful shows that you understand that and you wish to send the love back. If you put out loving thoughts and feelings via gratitude, the love of the universe will come back to you in the form of success and opportunities.

Additionally, being grateful means you can approach any situation in a positive way, including difficult ones. Every situation can be a chance for positive growth. When you have setbacks and painful experiences, you can look at them as learning opportunities instead of failures or misfortunes. This keeps you moving forward toward your goals, financial or otherwise, instead of holding you back in a mindset of bitterness or discontent.

To practice gratitude, Sincero suggests writing down 10 things that you’re grateful for before you go to sleep every night. Second, note down five things that are upsetting, frightening, or irritating in your life right now. Then, write down a reason to feel gratitude toward these five things.

Further Benefits of Gratitude Practice

Gratitude isn’t just a way to connect with the positive energy of the universe—it can also have many positive effects on your mental and physical health. Some research suggests that having a regular gratitude practice can create new neural pathways in parts of the brain responsible for social connection, rewards, and recognition of positive experiences. These connections allow us to more easily recall positive memories and experience their associated emotions over time.

Other studies found that gratitude reduces physiological stress and can lessen chronic pain. In one study, participants who communicated gratitude reported being less anxious, inflamed, and fatigued.

According to some psychologists, the combined mental and physical benefits of gratitude make you more resilient when you have negative experiences and setbacks. Even when things feel very difficult, gratitude enables you to find goodness and beauty. This gives you more control over your perspective and a heightened ability to reframe negative experiences. If you instead focus only on the bad things in your life, you may experience intensified depression, stress, and anxiety. This can make it harder for you to merely move through everyday life, much less pursue things like financial goals.

If thinking of a total of 15 things to be grateful for feels too much at first, try writing three things you’re grateful for before bed—something from the morning, something from the afternoon, and something from the evening. This will help you find something to appreciate in every part of the day. Or, try writing about a success you had and the person who helped you achieve it. This will help you show appreciation for someone important in your life, and you’ll realize that there are people who support you.

Strategy #3: Commit Fully to Your Financial Goals

Once you place your trust in the universe’s ability to provide what you need, Sincero argues that you must commit fully to your dreams and financial goals. Committing fully means letting go of your contingency plans and making a conscious decision to pursue the path that helps you acquire the money you want.

Committing is important because it shifts your mindset—when you focus all your energy on meeting your true goal instead of spreading it between your different contingency options, you begin looking for ways to make it come true. You’re more willing to take risks, and you have to believe that it’ll work out. There must be at least some chance of the plan working out because you wouldn't have chosen it in the first place if you didn't believe it could work.

(Shortform note: If you struggle to maintain a committed mindset despite these benefits, consider telling your financial goals to people whose opinions you value. The fear of disappointing them can help you stay accountable to your goals even when you’re struggling to stay committed for yourself. Also, your loved ones can offer an outside perspective with wisdom that may help you if you run into challenges along the way.)

When to Commit: Leaps of Faith vs. Bad Decisions

When deciding whether and how to fully commit to your financial goals, it may be wise to determine if the decision you’re about to make is a positive leap of faith or just a poor, misinformed choice.

Leaps of faith involve risk and may be scary, but they’re based on a love for something and a desire to make a lasting, positive change in your life. Your love for the thing you’re taking a chance on outweighs your fear that it might not work out. Therefore, the risk you’re taking is courageous and for a noble purpose. In contrast, a bad decision is one based on fear. You make it because you’re afraid to take a chance on something better.

For example, say you dream of independence and financial security. In one scenario, you decide to go back to school for a degree that will lead to a traditionally lucrative career. However, the new career isn’t actually the one you want—it’s just one you perceive to be secure. You’re afraid that you won’t succeed at what you really want to do, so you choose the easier option.

In the other scenario, you take a positive leap of faith: You choose the career you really want, even though it may be less secure. You choose to accept risk for the vocation you love, and you fully commit to it.

Take One Immediate Action That Will Help You Reach Your Goal

If you’re struggling to commit to your financial goals, Sincero suggests choosing one action that will put you on the path toward building wealth. This action should be something that you can do presently and that feels out of your comfort zone. For instance, taking out a loan for your new business might be the first uncomfortable but necessary step toward acquiring the wealth you desire. Another example could be quitting your stable job to go back to school for a new, more lucrative, and more enjoyable career path.

(Shortform note: Piers Steel (The Procrastination Equation) argues that breaking large, intimidating tasks—such as financial goals—into smaller, manageable action steps works because it encourages small wins. Every time you successfully complete an action, your confidence and motivation increase, propelling you to the next step. Further, other experts support Sincero’s advice to act outside of your comfort zone. Leaving your comfort zone promotes personal growth, and research suggests that challenges provide beneficial exercise for the brain. They make your brain healthier and more adaptable. Finally, challenging yourself leads to further motivation, as you feel proudest when you accomplish something difficult.)

If any limiting subconscious views about money arise because of this first action, write them down. Additionally, if you identify any limiting views, allow yourself to feel any associated emotions, recognize the emotions, and release them.

For example, you might hold the subconscious view that sticking with a seemingly stable career path is more important than doing something you enjoy but that’s less stable (even if you could eventually make more money doing it). When you pause and think about how this view has hindered you, you might feel disappointed that you spent so long doing something you disliked. You might also still experience some fear that you’re making the wrong choice and throwing away a solid career.

(Shortform note: To add a more concrete step to the process of writing down limiting thoughts and releasing negative emotions, consider throwing away the piece of paper when you’re done. A study found that participants who wrote down negative thoughts and subsequently threw them away also released the thoughts mentally. In contrast, participants who wrote their thoughts down but kept the paper were more likely to be influenced by those thoughts when making decisions later on.)

After identifying the subconscious views that were hindering you and processing the resulting emotions, visualize the positive things that might happen as a result of you taking this action. For example, you might imagine yourself getting your dream job after graduating, or you might envision buying all the things you’ve been saving up for when you have a higher-paying job.

(Shortform note: Visualization can help you achieve your financial goals by tricking your brain into thinking you’ve already succeeded. This can help you overcome fear and increase your confidence. When you clearly imagine that something’s happened, your brain responds as if you’re actually experiencing it. Your brain then incorporates the “experience” as a memory. Then, when you come upon the situation you visualized in real life, your brain already knows what to do and how to succeed because it thinks you’ve succeeded before.)