Fix Emotional Spending Habits with Feel-Good Finance and Learn How to Manage Finances Post-Job Loss
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This Smart Money podcast episode explores how to navigate job loss and reshape your relationship with money through two key segments. (01:58) First, Kim Palmer interviews financial therapist Aja Evans, author of "Feel-Good Finance," discussing how to overcome money taboos, financial trauma, and unhealthy spending patterns. (15:07) The second half features Brie, a Chicago listener who lost her job 3.5 weeks ago, discussing practical strategies for managing finances during unemployment including health insurance decisions, emergency fund usage, and job search priorities. The episode combines emotional and practical financial guidance for those facing career transitions.
- Core themes include breaking money taboos, understanding spending psychology, managing job loss finances, and making strategic decisions about healthcare coverage during unemployment
Speakers
Aja Evans
Aja Evans is a financial therapist and author of "Feel-Good Finance: Untangle Your Relationship with Money for Better Mental, Emotional, and Financial Well-Being." She specializes in helping people work through financial trauma, money shame, and develop healthier relationships with spending and saving.
Sean Pyles
Sean Pyles is a co-host of NerdWallet's Smart Money podcast and personal finance expert. He provides practical financial guidance and interviews guests about money management strategies.
Elizabeth Ayoola
Elizabeth Ayoola is a co-host of NerdWallet's Smart Money podcast and financial expert who focuses on helping people make smarter financial decisions and navigate challenging money situations.
Kim Palmer
Kim Palmer is a NerdWallet writer who leads the podcast's book club series, interviewing financial authors and experts about their insights and strategies.
Key Takeaways
Practice Talking About Money to Break Taboos
Aja Evans emphasizes that money remains taboo because "we don't talk about it. It feels like such a secret that isn't supposed to be spoken about." (02:30) She advocates starting conversations about salary negotiations, estate planning, and financial goals with trusted people first. The key is building comfort through repetition - Evans herself practiced saying salary numbers 30 times before negotiations. (05:22) This approach helps develop confidence for crucial financial conversations throughout life, from workplace negotiations to family financial planning discussions.
Understand the Psychology Behind Emotional Spending
Evans explains that spending often serves as a coping mechanism driven by dopamine - we get excited while searching for items that represent who we want to be. (09:14) However, "what you are trying to buy is trying to cope with something else," whether that's wanting to appear fit, successful, or respected. (10:00) The solution is creating a "dopamine menu" of free activities that provide the same mood-boosting effects without financial cost. This helps people recognize spending triggers and develop healthier alternatives for managing emotions.
Prioritize Any Income Over Waiting for the Perfect Job
When facing unemployment, Sean Pyles advises that "getting some kind of income stream should be the priority," even if it's part-time or not in your ideal field. (21:38) With the typical unemployment period now around 10 weeks and potentially longer, waiting for the perfect remote or high-paying position can be financially dangerous. (22:02) Taking temporary work also provides the advantage that "it's easier to get a job when you already have a job," giving you leverage and reducing gaps in your resume.
Create Structure and Rewards During Job Search
Brie demonstrates effective job search management by creating specific goals with predetermined rewards. (29:55) Early milestones earn free rewards like "sleep an extra hour or paint your nails," while goals closer to job offers unlock small purchases like tennis shoes or pottery classes. This system maintains motivation while controlling spending during a financially vulnerable period. The strategy also provides structure when daily routines disappear after job loss, helping maintain psychological well-being alongside financial discipline.
Move Money to High-Yield Savings Accounts Immediately
Evans identifies this as a crucial action item: "I want people to move their money into a high yield savings account. Please do not leave your savings in just a regular savings account." (11:01) This simple change allows your money to earn returns while sitting in savings, maximizing the growth potential of emergency funds and other saved money. The recommendation applies especially during periods of financial uncertainty when every dollar of growth matters for extending the runway during unemployment or other financial challenges.
Statistics & Facts
- The typical unemployment period is currently around 10 weeks and has been increasing over time, according to NerdWallet's 2025 labor market report. (22:02) Sean Pyles cited this statistic to emphasize why finding any employment quickly is crucial, even if it's not ideal.
- COBRA health insurance cost Brie $971 per month, representing over one-third of her total monthly expenses of $2,600 (excluding insurance). (26:01) This demonstrates how health insurance can become a major financial burden during unemployment.
- NerdWallet Wealth Partners charges a maximum advisory fee of 0.9%, with clients paying about 30% less than they would at other wealth management firms. This statistic was mentioned in the sponsored content segment.
