Hi, beautiful! Welcome back to Boldly Courageous, a podcast created for you — the ambitious woman who is ready to take action and step fully into the life you’ve always dreamed of. Thank you so much for reading about this episode today –– I am so thrilled to share something new that I’ve learned with you that I think is really inspirational.
I just got done recording a podcast episode with my girl, Jenn Kennedy. We talked all about shifting your money mindset for maximum impact. This might be one of my best interviews ever — I had more than one breakthrough myself, and I’m confident you’ll learn something too!
I want to share more about this breakthrough with you because it totally blew me away. I hope you can learn something from this conversation and from hearing a little bit about my history and relationship with money.
My History with Income
I want to give you a little more context and backstory to help frame why this breakthrough was so radical. I’ll be real with you — today I’m in the process of financially rebuilding. I went from generating multiple six figures a year through network marketing –– to basically losing it all.
In 2019, my company completely restructured its business model and changed the way that it paid its distributors. This meant that we went from a multi-level compensation plan to a single-level compensation plan. Everything that I had done over the past seven years to build teams, recruit, lead, and teach others to replicate my tactics –– basically what network marketing is all about –– was suddenly worthless.
I lost pretty much all of my income in 60 days. I had to start thinking about wealth generation in a whole new way and rebuild my business from the ground up.
Want to know something crazy? This isn’t the first time I’ve been faced with the challenge of starting over — this also happened to me in 2012.
That year, I was laid off from my job in the financial services industry. That was the moment when I pivoted into network marketing. I learned from that experience that it’s super important to build multiple income streams. I’m so grateful that I learned that lesson because when my network marketing company restructured, I had co-founded a company called Ladies Aligned with my best friend, Sandy Vo. It was generating income, along with some private coaching I was doing on the side. I had three revenue streams, but network marketing was my main source of income.
I’m sharing this background with you so you know where my head was at going into this conversation with Jenn Kennedy. This year for me has been all about rebuilding – and it hasn’t been an easy path.
The Truth About Income and Net Worth
My goal for this year has been to really lean into my gifts and to go after my big dreams. I’m not playing it safe anymore; I see the loss of income from my network marketing job as the universe taking away my safety net. The world is telling me to step in and fully realize my power. If anything, 2020 has been a huge wake-up call!
Today, I’ve crossed the six-figure income mark in my business –– which is a HUGE accomplishment for me! At the beginning of this year, it didn’t seem like achieving this level of success was going to be possible. I could feel myself falling into a trap of scarcity. I could feel myself operating from a place of fear. I was wondering and questioning the path that I had chosen.
And sis, I’m going to be transparent. It doesn’t actually matter that I earned six figures in my business. What actually matters is my net worth. This is such an important concept to understand – income is different from net worth, and when we understand that difference, we are able to avoid judgment, comparing ourselves to others, or working from a mindset of scarcity or self-doubt.
When someone talks about their income, they’re only telling you part of the story. What you’re not hearing about is how much it costs for them to make that much money. Just because I hit six figures in my business doesn’t mean that I have six figures available to spend, right? There are operating costs to running a business. I believe that it’s really important that we start having the conversation around generating real wealth and generating real net worth.
When I think about the future version of me, she’s a multimillionaire. Future-Melissa generates well over $300,000 a month in revenue in her business. She’s living into her purpose. She’s creating massive impact, and she’s a smart, financially-savvy woman.
When you think about the future version of who you are, who you want to grow into, and how you co-create with your money, who is that person? How does she think? How does she act? What kind of decisions does she make? Whatever that goal is for you –– whatever you’re picturing for yourself –– do you have the resources available to make that vision happen?
If you’re like me, there’s a good chance you’re self-sabotaging your growth into that future version of you. Let me explain what net worth is and why it matters –– because once I understood just how important this concept is, it helped me find a better money mindset and align with my goals for the future.
What Is Net Worth?
I just want to give you a quick crash course in this concept so you can understand why net worth is so important. Net worth is basically everything you own, minus everything you owe.
Let’s say you own a house. The value of that house is $300,000. You also have a retirement account with $100,000, plus a savings account and a checking account. The total of all of your accounts is another $100,000. If you add up all your assets, that’s $300,000 + $100,000 + $100,000 for a total of $500,000.
Then, you need to calculate your liabilities –– what you owe. Say you have a mortgage on your house –– you owe $200,000 on your house. Let’s say you have $100,000 in student loans. You have $50,000 in credit card debt. Add all of that up: $200,000 + $100,000 + $50,000, and you have $350,000 in liabilities.
Your net worth is $500,000 minus $350,000 in liabilities. In this example, your net worth would be $150,000, which is still really amazing.
Let’s say someone on social media posts that they generated six figures in their business this year. That sounds amazing, right? You may think to yourself, “Wow, what would it look like if I made six figures this year, or even seven figures?”
Remember though, that if your operating expenses or liabilities add up to $1.2 million, you’re actually $200,000 in the red!
Income is only half the story. I’ve gotten caught up in this mindset of earning six figures or more –– which is great, but what really matters is net worth. How can you create a foundation of financial stability from which you can create real impact?
I want you to ask yourself, “What do I need to be doing now to reach a net-worth goal?” From a financial perspective, generating true net worth gives you a way to have more leverage over your career, your impact, and your goals. Net worth gives you the financial stability to make decisions that align with your beliefs and start to generate multiple revenue streams.
Feel into Your Relationship with Money
How does this information tie into my conversation with Jenn? Jenn and I talked all about how money has a vibration and energy. By feeling into that energy, you can create more impact.
Jenn’s advice –– babe, this was seriously so powerful for me –– was to start noticing where you’re “leaking” money. Go through your bank statement literally line by line and check-in with how each purchase makes you feel. What’s the energy behind your spending patterns? See if you can notice a trend.
As I’m looking through my bank statement, and I feel into the energy behind it, I’m asking myself, “What is the energy behind this payment? Does it feel expansive? Does it feel co-creative? Is there any guilt behind it? Is there any resentment behind it?” As you go through your purchases, the big question you should be asking is –– “How does this purchase align with my higher vision?”
I love this exercise. It totally takes your relationship with money to a deeper level. I’ve always believed in having money dates and checking in, but going item by item and getting clear on the energy behind every purchase is so intense and useful!
This practice got me really excited. Your relationship with money is a powerful mirror for your relationships everywhere else. For me, going through this exercise led me to a massive breakthrough around resistance.
I’ve shared in prior podcasts that resistance to your dreams can show up in several different ways. One of the ways that it shows up for me is around time and energy. If I have a big goal, I have a lot of resistance around writing the content and doing the sales copy and creating the videos. Instead of doing the things I should do, I start saying “yes” to all the little things that feel good in the moment. Then, because I’m saying “yes” to so many things, my calendar gets really full and my energy gets really, really low. When the time comes to make my big vision come to life, I don’t have time or energy for it.
This is a way of self-sabotaging, of sitting in resistance. It’s not fun, and I also started to notice how it can show up in my spending habits.
If you have a vision or dream to be debt-free, to build net worth, to invest in other properties, or to have money available, start noticing the ways you may be self-sabotaging your financial goals. For example, if I know I want to invest in real estate, how am I saying yes to little things that are actually keeping me stuck? Little expenses –– $15 here, $20 there, $500 here –– those payments add up, right? These spending habits are holding me back from accomplishing big things down the road.
How Can You Create Real Wealth?
Babe, I can already feel a huge shift in my relationship with money. This breakthrough is going to allow me to see more clearly where I’m leaking money and how I can be a little bit more conscious with the way that I co-create with my money. I hope this helps you realize your big dreams and goals too!
Remember, your net worth is more than just how much you earn. It’s about building a financial foundation so you can have the most impact on the world. I hope that thinking this way about money helps you move out of resistance and into abundance.
Today, I’m celebrating you and encouraging you to think about net worth, how you want to generate it, how you want to build it, and what that future version of you would do from a position of financial abundance.
Thank you so much for reading this post. I hope you give this episode a listen and share it with someone you know needs to hear it. Listen to the conversation I had with Jenn Kennedy that led to this breakthrough here. Also, let me know what your greatest takeaways are on Instagram and tag me, @themelissamartin
Go out there and live your boldly courageous life. I love you all.