Review Your Financial Biography

Our attitudes and beliefs about money have their roots in value-laden messages that we have picked up along life’s journey.  These money messages are not only clothed in the words of others, but in their behaviors as well.

The authors of Wired for Wealth (Brad Klontz, Rick Kahler, and Ted Klontz) write that all of our financial actions—or inactions—make perfect sense when we understand what “money scripts” drive those behaviors.

“Money scripts are the thoughts, beliefs, and attitudes that we hold about money.  Many of our associations are hidden deeply in the unconscious mind.” (more…)

Values Guided Financial Planning

Financial Life Planning is a holistic process that will first help you to clarify your values and then guide you in defining and designing your unique version of the “rich life.”

When thinking about values, we often think in terms of principles or standards we consider important such as honesty, loyalty, or altruism.  We also tend to think of values in terms of what we hold most dear such as family and good health.

Our values are also those intangibles that keep us motivated.  Motivators vary from person to person, but examples include wealth, recognition, achievement, intelligence, creativity, challenge, adventure, harmony, and so on. (more…)

Getting Unboxed

In The Three Boxes of Life: And How to Get Out of Them, author Richard Bolles described the three periods of life as (1) youth, (2) adulthood, and (3) old age.  He observed that life in each stage seems to be conducted without much consciousness or preparation for life in the next stage.

High school and college graduates almost universally express that they learned very little in school to help them find jobs or to be successful in their careers.  Likewise, workers approaching the end of their careers realize they are ill prepared for life in retirement.  Thus, as Bolles explained, “these three periods—in their isolation from one another—end up looking (or feeling) like three boxes.” (more…)

The Root of Money Scripts

For many of us, managing our finances and building economic security is a nagging concern.  We know we should be making greater strides in taking control of our money matters, but nothing changes.  We become confused and discouraged about our inability to make positive change in our financial lives.

However, the authors of Wired for Wealth (Brad Klontz, Rick Kahler, and Ted Klontz) say that all of our financial actions—or inactions—make perfect sense when we understand what “money scripts” drive those behaviors.  They write:

“Money scripts are the thoughts, beliefs, and attitudes that we hold about money.  Many of our associations are hidden deeply in the unconscious mind.” (more…)

Money & Relationship Dynamics

Nowhere is the influence of emotion on financial behavior more clearly illustrated than in interpersonal relationships.  Consider these examples:

  • Nick has a need to be viewed as “successful” in the eyes of his friends and colleagues. To him, the proof of one’s success is material possessions. Therefore, Nick has purchased a custom built home, luxury cars, expensive clothes, and a prestigious golf club membership—all of which he really cannot afford. Unfortunately for Nick, the real price tag for meeting his emotional need is pretense and mounting debt.
  • Emily is a saver and Brad is a spender. Emily wants to save for a rainy day and Brad wants to live for the day. There was a time when their differences in perspective were a source for good-natured teasing, but recently the “humor” around money matters has disappeared. Tension in their relationship is mounting, and they each feel the other is the obstacle to achieving financial satisfaction.
  • Single and fifty years old, Linda finds financial matters to be boring and confusing. Her father, retired and with time on his hands, is all too eager to relieve Linda of any task she finds onerous. He oversees all of her accounts and makes all her investment decisions for her.

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Mastering Cash Flow: The Key to Financial Success

Budgeting. Just the thought of that word can elicit groans and shudders. Yes, there are those out there who love typing every expenditure into their spreadsheets or personal finance software programs, who gleefully save every receipt from every purchase, and who enjoy doing this every day. But for some, the idea of taking the time to create and maintain a full-blown budget can be intimidating.

Anna Prior
Wall Street Journal

The key to financial success is adopting a cash flow plan that will guide your financial decisions on a day to day basis. In addition, understanding and controlling how money flows in and out of your life will free you from financial stress and empower you to achieve your most important life goals. (more…)