Shang Saavedra, a money coach and author of the upcoming book Wealth Is a Mindset, believes that financial freedom starts with a positive mindset and mental well-being. After years of anxiety and burnout, she left her corporate career to help others change their beliefs about money.
From Immigrant Success to Burnout
Saavedra, born in rural China and raised in Boston, achieved the immigrant dream: Harvard, a six-figure salary, and frugal investing. But the pressure to succeed strained her relationships and mental health. Therapy helped her break free from scarcity thinking.
Key Takeaways from Saavedra's Philosophy
- Cultivate a healthy, positive mindset as a foundation for personal finance.
- Join community groups to combat isolation around money struggles.
- Consider Health Savings Accounts for fertility treatment savings.
- Renting can be a better financial decision than buying a home.
Switching from Scarcity to Abundance
Saavedra advises reframing daily tasks: 'Instead of saying I have to go to work, say I get to go to work.' This simple shift can transform mindset and improve relationships.
First Steps for Clients
She starts by assessing income and expenses, then works backward to meet basic needs and allocate funds for debt or retirement. The key is committing to a goal for three months to build habits.
Mental Health and Wealth
Depression and anxiety can hinder clear thinking and goal-setting. Saavedra emphasizes getting help through therapy, medication, or support groups. She budgets for therapy by prioritizing mental health as essential.
Budgeting for Therapy
She advises checking in-network coverage, sliding scale fees, and community resources. 'We only have one brain and one body,' she says, urging clients to invest in mental health.
Motivation and Frugality
Saavedra's motivation shifted from wanting to be rich to seeking freedom for family. She remains frugal to set an example for her children and views her wealth as a tool for good, tithing 10% to nonprofits.
The Trigger-Action-Reward Approach
She helps clients interrupt negative patterns. For a client who shopped when bored at work, she suggested applying for new jobs instead of spending money.
IVF and Financial Planning
Saavedra used employer fertility benefits and saved for IVF. She recommends HSAs for tax-free savings but warns against investing money needed within one to two years.
Money Regrets and Best Purchases
She regrets buying houses that didn't turn a profit. Her best purchase? A $3,000 Louis Vuitton handbag for her 40th birthday, which satisfied her desire for luxury without financial strain.
Conventional Wisdom
Saavedra criticizes advice like skipping coffee, noting that saving $5 a day is trivial compared to reducing rent. However, she acknowledges that small habits add up to significant change.
Money and Happiness
While enough money reduces stress, beyond a threshold it doesn't increase contentment. She values what money can't buy: strong relationships and time with family.
