How to build wealth, by clearing your money blocks.  Money blocks are negative subconscious beliefs about, money, that limit you from achieving your conscious desires. Hilary Hendershott, wealth coach talks today on the Transform Your Mind Radio and Podcast on the topic  “How to build wealth, by remove your, money blocks.” Hilary was once $600,000 in depth and now has a seven figure net worth. 

Listen to the full interview here:

Hilary – I found myself in my late 20s with multiple credit cards and  tens of  thousands of credit card debt, plus I had a $420,000 in mortgage debt on a condo.  In 2008 that  condo in San Jose California went from $430,000 in appraised value to just $190,000.  I had massive uncollateralized debt, $72,000 in tuition debt and I was the kind of person who would spend money before it came in!  I was a massive over spender.

Back then I had never heard the term, Money Blocks. Today as a coach and operating from my own, money blocks, I understand that I was an over spender because I had, money blocks.  

The definition of, Money Blocks

The definition  money blocks: negative subconscious beliefs about, money, that limit you from achieving your conscious desires. Let's say you're trying to save, money, but, for whatever reason, you can't seem to do it. You spend, money, almost as soon as you get it, and you don't know why.

Hilary – I started gaining clarity on my, money blocks, the  day I pulled my leased BMW into the gas station and I put my credit card into the machine to get gas, and my credit card was declined. I tried another card, it was declined, I put the third card it was also declined. At that point, all my credit cards are maxed out and  no one would give me any more credit cards.

My bank accounts were empty and had already emptied out my 401k. I had spent all this good money chasing after bad  while trying to dig myself out of this hole; because as my income was declining in 2008, and my debt was increasing.  So I literally couldn't even put a tank of gas in my beautiful convertible BMW that day.

How I became an expert on clearing, money blocks

Hilary – I decided to become an expert on, money, psychology. I really made a decision that day and I said “I‘m not willing to live like this anymore”. I understood, how to build wealth, from the beginning. I understood that our, money blocks,  are as much a function of linguistics,  the words that we use to describe, money, than it is about our upbringing.  

So, when I said “there's never enough money” I was speaking it into the atmosphere. That became a self fulfilling  prophesy.  There's never enough money was my, money operating system. I trademarked this term, Money Operating System.  Just like your computer has an operating system, we all have a, money operating system.  That is sort of another way  of saying, money blocks. 

How money blocks are formed

As a financial planner, I learnt, how to build wealth, through real estate investments. I actually had a six figure income; but spent more than I earned. 

How to build wealth to a six figure income

There was one year  I earned $120,000 in income and I spent $150,000.   I attended a talk at a Financial Planner Conference and this woman, who is now a personal friend of mine,  talked about, money blocks, and,  money, psychology.  She used the term “over spender”. I had never heard about, money blocks,  before that talk. Being an over-spender is one way to manifest, there is never enough money. 

Another way you can manifest, there's never enough money, is by being an, under earner. There are some of you listening to this podcast; you just can't seem to earn what you know you're worth in the marketplace. You are actually sabotaging yourself. 

• You deliberately pick the jobs that are under earning.  
• You under promote yourself,
• You don't ask for raises,
• You get contract gigs and spend six months unemployed.

Hilary – To make a long story short, I put what I learned into practice – I paid off all my debt and then  I got really honest and transparent about where I was financially.

I lived in my mother's guest room for a while to make it happen. I lost that condo and I paid off the debt. I started putting my money where my mouth was in terms of building my business.  I now run a registered investment advisory firm. We are all women, owned and operated.  

My business earns about a million dollars a year. My husband and I just share the numbers; because I want to normalize people talking about, money. My husband and I have a house in Silicon Valley that's worth two million dollars and if you put together all of our other investments, we're definitely what you would call financially independent. We have, financial freedom. 

How to Build Wealth: Have your, money work for you.

How to build wealth, from having no money. Now we have, money, work for us; but it's a skill set that I didn't always have. I have found out that my purpose on this planet is to coach people, especially entrepreneurs. For those people who run businesses, the sky is the limit for them to remove their, money blocks, wherever they may be. 

I figured it out. I sort of put myself in, money, boot camp. I didn't buy a cup of coffee in a coffee shop for two years. When I was in boot camp, I got very conscious about what I was saying about, money.  I now use linguistics as the foundation of my coaching.  Anyone I coach, the first thing we do is remove “ I can't afford that.” from our vocabulary. 

Those words are not allowed to come out of your mouth. You either say “Oh great, let me see how I can work that out” or  “I‘m going to put that in my spending plan.”

Myrna – That's awesome. Your language about, money,  is very powerful. Let's talk about, money mindset block.   My audience on the radio are mostly African American and  sometimes they are in the poverty space.  Our community  is predisposed  to over spending.  We want the nice things, we want the designer shoes and bags.

I was talking to a guy one day, he was wearing nice running shoes and he said they were Kanye West shoes and cost $400. I couldn't help thinking  what was his, money mindset, to spend $400 on Kanye West running shoes? 

What is a Money Mindset Block

Myrna – What exactly is a, money mindset block, and how does that show itself for somebody that's looking at their spouse and saying maybe they have a, money mindset block?

Hilary – First of all, the idea of the, money operating system, is the lead, money block. For me it was “there's never enough money” and so all my, money blocks, are going to harmonize with that particular lead, money block. For example, let me just say each individual is different and I don't mean to answer questions for someone who isn't even here;  but let's take the example of the person who spent $400 on Kanye West running shoes and maybe can't pay rent, so there's an imbalance there.

If you ask that person why he spent $400 on running shoes, he might say:

•  I need to have this to be socially accepted,
• I need these shoes so that people can think I‘m wealthy,
• I need to have these shoes,  so that people can think I‘m powerful. 

Then you would ask the question.

• Well, do you have those things?
• What do people think about you?
• Have you achieved this goal?
• Is that desire fulfilled for you?

And if you really look, it's probably not because we need another pair of shoes or another designer bag or any other another brand name to become socially acceptable.  It's an infallible hole that you can't fill with designer shoes. Instead, if you can reposition in your mind,  if you're really tired of your, money, going the way that it's going, if you're sort of fed up and a little bit disgusted with the fact that you know you're a smart capable educated, well-intentioned person and money isn't working for you in your life, this is, how to build wealth, you clear your, money mindset block. 

What are your 7 steps to  build wealth?

Myrna – You have 7 steps to, wealth, is that how you coach someone that maybe have an overspending problem or they have a, money mindset block, problem or their, money operating system, is not working properly? 

Step 1- Permission: All effective coaching starts with permission. The first step is to decide you have, money blocks,  to make the decision that you're ready for change.  There's no denying that you're giving up the Kanye West shoes and the brand name bags and other creature comforts. A lot of people who make financial transformation to, build wealth, find that they have to move.

They actually need a lower cost place to live; they need to give up the beautiful leased car so they can pay cash for a car and don't have monthly payments.  You are lowering your standard of living in the beginning and that takes courage. It takes willingness to sacrifice, so after you've made a decision then we catalog your vocabulary about money, this is really important.

Step 2–  Your money vocabulary –  no one ever wants to talk about, money.  You need to talk about money, to find out what your friend is doing; what's working, what's not working. You can provide advice or ask for advice if you want. What do you say to yourself about, money? Maybe some people think in pictures about, money, or maybe it's just an emotion.  You think about spending, money, and you get excited; you think about saving, money,  and you get sad.

Building Wealth with Money Map

So, let's get specific about what you say about, money. We've got a, money map, we've actually got kind of your, money blocks, in black and white in front of us.

Now, we can really start the coaching. So, we have sort of highlighted and done the private detective work figuring out, what’s your actual, money blocks.

I‘ll give you an example, someone I coached found this counter intuitively. She felt rich when checks would get mailed to her, so she would put the checks in her desk and not send them to the bank. Isn't that strange? I can't even identify that block, that is like a serious, money, scarcity thing.

Myrna –  Did she not know the checks are only paper unless you get the, money?

Hilary – No. It was completely just something she was blind to, until we did the, money, conversation log and she saw it.

She saw it for what it was and she's like oh my God, this is crazy behavior; but no one's ever asked me about my, money, behavior, so I never thought about it.

Step 3 –  logistics of money.  I don't teach budgets, I think budgets are overwhelming and too detailed for most people. I think that people spend a lot of time designing a budget and then they never honor it or live by it, because it's too restrictive .

Step 4 – Earn money – You can't categorize every single expenditure you have, you're a busy person with lots of responsibilities.  So instead, I teach a system I call automation. It's sort of like the equivalent of irrigation in your garden – little hoses bring, money, to the places where it needs to be.  People love it. 

• you pay yourself first,
• you pay your overhead
• you save for your short-term goals – maybe your next car 
• you save for your financial independence first.
• Then what's left over, You spend from one account and that way when that account gets to zero, you're not at zero, your money goals are already funded.

That's the plan and honestly most people get through the plan because it's very front-loaded. It is a lot of work in the beginning; but once you set it up, just like irrigation, it happens every time you turn the hose on. People pay a lot of, money, to coaches to figure out how to earn money and they can't figure out why their, money, still doesn't work for them and it's because they don't have these steps.

Step 5 – The ASK mindset –  Learning to ask is a  mindset . You can ask for a million things :

•  you can ask your credit cards companies for a lower interest rate,
• you can ask your insurance for a lower premium,
• you can ask your memberships for a discount.
• You can ask  for a discount at Star Buck. Just go ask. The point is not whether you get the discount or not, it's having the mindset to ASK. We do a challenge inside my coaching program called “Get 100 No's”  You win the game by getting a hundred no's and my assertion is, It will change your life. You're building strength your, money blocks, are going to be different. For some, you'll find that your, money blocks, are operationally systematized in your business processes.

Step 6 – Clearing the, money blocks.  in your business –  As an entrepreneur you're either under charging for your products or services or you're not spending enough effort getting prospects into your funnel. Whatever it is, there's some part of the process that's broken for you. My training is called “Eight Ways Business Owners can Transform Revenue into Personal Wealth”, it is anon-demand training from October 8th to 15th.

So, you definitely want to go grab it.  This training is really for entrepreneurs who are sick and tired of working so hard for the, money, and having not much to show for it.

Step 7 – Protect – Once you clear your, money blocks, you can, build wealth, by protecting what you built.

I just want to show you how to climb out of that trap in this training and the great news is – it's totally FREE. 

I want to encourage you, please subscribe to the ‘Transform Your Mind’ YouTube podcast’s channel. Definitely trying to grow our audience.