Episode 144

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Published on:

3rd Jul 2024

Why Are We So Weird When It Comes to Money | E144 Paco de Leon

Humans are weird whenever it comes to money. We drive five miles out of the way to save a few cents on gas. We buy things we don’t need because they’re on sale. We don’t ask for a raise although we’ve been working hard at the same place for years.

We all have irrational behaviors when it comes to money and a lot of this has to do with psychology. Common biases impact our ability to make logical decisions. You’ve probably heard of a couple of these biases before. Some examples include the sunk-cost fallacy, anchoring, mental accounting, the status quo, and the bandwagon effect.


Although we’ll never be able to truly rid ourselves of these biases, there are practices that you can put into place to make more rational decisions.


My friend Paco de Leon is on the show today to talk about some of the reasons why we do the things we do and she’ll share exercises you can do to recognize and recover from situations that are impacting how you think and behave when it comes to money.


Paco is the perfect partner to have this conversation with because she is thinking and talking about this subject all of the time. She is the host of Weird Finance, a podcast for creatives who are looking for explanations of complex financial concepts in a friendly, approachable way. 


I know you’re really going to enjoy this one so buckle up. I hope you enjoy my conversation with the 1st gen immigrant, TED speaker, and founder of The Hell Yeah Group…Paco de Leon.


Key Takeaways:

  • Why we are built to pay attention to scarcity and how that impacts our relationship with money
  • How we can make better decisions by understanding our window of tolerance
  • Curbing impulse buying with the $100 buy list
  • Enjoying simplicity
  • How to get comfortable with money
  • Mine Yours and Ours budget


More of Paco:

Podcast - Weird Finance: https://thehellyeahgroup.com/weird-finance-listen-now

Book - Finance for the People: https://thehellyeahgroup.com/finance-for-the-people


More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

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FI Minded - Financial Independence Without the Extremes
Achieve Financial Independence & Have Fun Doing It
Pursuing financial freedom, a work-optional lifestyle, or early retirement often leads to the same questions: “one more year,” “do I have enough?” “what does life actually look like after this?”

FI Minded helps you think like someone who’s already financially independent so you can make smarter decisions about how you work, spend, and live.

From Coast FI and Slow FI to lifestyle design, career transitions, healthcare, and self-employment, each episode explores the real decisions behind building a flexible, work-optional life…without burnout, over-optimization, or missing out along the way.

We cover:
* Smarter ways to reach financial independence (without burnout)
* Designing a flexible, work-optional lifestyle
* Coast FI, Slow FI, and enjoying your time along the way
* What life actually looks like after FI (and how to prepare for it)
* The tradeoffs behind big money decisions

Make progress toward financial independence while actually living your life.

Some of our past guests include Carl Jensen (1500 Days), Jeremy Schneider (Personal Finance Club), Nick Loper (Side Hustle Show), Andrew Giancola (The Personal Finance Podcast), Jordan Grumet (Earn & Invest), Rachael Camp (Work Optional), Jillian Johnsrud (Retire Often), Sean Mullaney (FI Tax Guy), Jill Sirianni (Frugal Friends), Jackie Cummings-Koski (Catching Up to FI), Joel Larsgaard (How to Money), Cody Garrett (Measure Twice), Jesse Cramer (Personal Finance for Long-Term Investors), Jess (The Fioneers), Chris Hutchins (All The Hacks), Diania Merriam (EconoMe), Andy Hill (Marriage Kids Money), Fritz Gilbert (Retirement Manifesto), and and others helping you rethink how to approach financial independence.
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