Emotional Underpinnings of Money

Money. There are so many quotes, thoughts, and ideas on how it is best to be measured in our lives. “It’s not really about the money.” “It’s the root of all evil”. “It’s what makes the world go round”. “Live within your means”. And on and on.  Such an integrated part of our lives, just by the necessity of its existence. Yet, we are forced every day to determine how to find that inflection point between how to use it in the best “financial manner possible” but also fulfill its true meaning in our lives. Deep stuff right out of the gate, I know. Stay with me.

Let’s get personal. Do you know anyone who has as much money as most of us could ever think of having, yet would never drive a new car, and would pick up any used lawnmower on the side of a curb? Or someone who doesn’t have much, but you would never know it because their lifestyle represents everything they “deserve”? We are all on some level of that continuum. That’s just how it works. It’s what makes us all who we are.

With that said, the journey that money represents to us is not only complex, but in our view, it is also a bit undiscovered as it relates to true intellectual and behavioral finance. As of now, we are forced to deal with it every day and at every level of our lives, with often very little “official” training or experience”.

There are so many factors that make up how we think about money in our lives, and each piece is different for all of us. One could be what our parents taught us. Others, what we learned in school, our own genetics, life experiences, and even something called Epigenetics. How about biases, status, and values? All of these come into play, and influence not only our outward, but inward behaviors and decisions. The interesting thing, and dare I say result, is, so much of our life presence is spent measuring how we compare to one another. Yet very little time is spent wondering why that is and why it truly matters. The outcome is that it often becomes viewed through cultural, economic, political, or social forces, when the true power is in its meaning. 

Financial planning as it exists today can much be viewed as a financial exercise in how our lives fit into our money. While building a solid wealth plan is certainly part of the process, it is only the beginning. We believe that true wealth management is a discussion about that crossover between money and what it means. It is the true work of understanding our own emotional underpinnings, learning how we can maximize our own personal experiences, and truly live in the present. It’s not only about the guiderails we create about what’s right and wrong to do with our money, but also our why and how. That’s where the hard work can often be found, but like so many things in life, it’s also where the magic happens. If you want to know what truly makes our firm different, it is our experience in this area. Give us a call. Let’s talk about it.

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