How to stop being weird about money (w/ Paco de Leon)
Feb 10, 2025
auto_awesome
Paco de Leon, a financial planner and author of "Finance for the People," shares her expertise on transforming the awkwardness surrounding money, particularly for artists and freelancers. She explains how reframing the narrative from "money corrupts" to "money empowers creativity" can unleash artistic potential. Paco offers practical tips on pricing strategies, valuing one’s unique skills, and fostering more open discussions about finances, ultimately encouraging listeners to embrace financial literacy as a pathway to greater confidence and freedom.
Reframing money as a tool for creative freedom rather than a corrupting force can empower artists and freelancers to thrive in their work.
Effective pricing strategies and open conversations about finances can enhance an artist's value perception and reduce stigma around financial discussions.
Deep dives
Understanding the Connection Between Money and Creativity
Money management is crucial for those pursuing creative endeavors, as it directly impacts the ability to engage in artistic pursuits. Creatives often grapple with the belief that focusing on money may compromise their creativity; however, managing their finances is essential to achieve artistic freedom and autonomy. Financial literacy not only allows artists to ensure their day-to-day living expenses are covered but also empowers them to support their work and influence within the broader community. Without effective financial strategies, even successful creatives may struggle to maintain their passion for art.
The Importance of Pricing and Value Perception
Pricing one's work appropriately can have a significant impact on how clients perceive value and quality. Charging too little can attract clients who only seek the cheapest options, which often leads to undervaluation of both the work and the artist. In contrast, setting a higher price can elevate the perceived value of the services provided, garnering respect from clients and establishing a professional reputation. Therefore, understanding how to communicate one's unique value proposition is vital for freelancers and artists to gain recognition and adequately compensate for their efforts.
Incorporating Thrift into Financial Empowerment
Thrift is not merely about frugality; it is a strategy to use resources wisely to create impact and support creative endeavors. By acknowledging and adjusting spending habits, individuals can direct their resources toward meaningful goals rather than wasteful expenses. Creating separate accounts for different spending categories allows individuals to manage their finances better and encourages mindful consumption, enabling them to save for future investments. This conscious allocation of funds aligns with the broader goal of achieving financial security while pursuing creative passions.
Navigating Shame and Improving Financial Literacy
Shame surrounding financial struggles is common and can hinder individuals from seeking help or addressing their financial situations. Recognizing that shame often stems from societal expectations and norms can help de-stigmatize discussions about money. Encouraging open conversations and sharing experiences openly can foster a supportive environment for those grappling with financial issues. Moreover, implementing practical strategies and gaining a better understanding of financial systems can empower individuals to take control of their financial situations and reduce feelings of shame.
Talking about money can feel confusing and awkward, but it doesn’t have to be. Paco de Leon is a financial planner and author of the book Finance for the People: Getting a Grip on Your Finances. Paco joins Chris to discuss ways everyone – but particularly freelancers and artists – can reframe their conversations and shift their mindset from “money corrupts” to “money gives you the power and freedom to create more art”. Whether it’s advising parents how to talk about money to their children or learning how to set a premium price for your skill, Paco shares tips to help you increase your profits – and transform your confidence around money.