Building a positive relationship with your finances

Beth Lynch in Wealth Management 7 March, 2019

One of the most important goals financial advisors have is ensuring their clients have a positive relationship with their finances. Sometimes, it can be difficult to change a negative mindset about money, and in turn, impact money decisions that affect budgeting, paying down debt or saving for retirement. To help reframe clients’ negative money mindset, I often start by asking them three things — What are your goals? What are your accomplishments? What are your concerns?

One thing I’ve noticed as an advisor is that many people have a negative mindset and do not think they can accomplish their goals. They commonly say things like, “There’s no way I’ll get out of this debt,” or “There’s no way I can save that much for retirement.” My job is to set up a plan that helps them achieve their goals. It’s like trying to lose weight — you have to start somewhere and put a plan together or the weight isn’t going to come off. I advise clients to set goals every single day, and it helps change their mindset from I can’t do it, to I’ll be able to do this.

Another important facet in helping spin clients’ mindset from a negative to a positive is to discuss their accomplishments. This can help set the stage for them to be positive and have an optimistic voice. For example, saving $5,000 may not seem like a big accomplishment to a client, but it’s something they can achieve and build. By showing them they can do it and celebrating these types of  achievements, I can help shift their negative narrative surrounding their money goals and aid in setting up achievable goals in a positive manner. If they can save $5,000, it opens their mind that they are able to pay down their debt or sock away more money for retirement, and it’s my job to show them how this can be achieved.

In addition, facing concerns head-on can make them less overwhelming. Breaking down the concerns and putting actionable steps into place can help clients feel more at ease with their financial life. Sometimes it’s as simple as not having the newest car or not purchasing a coffee every morning. Showing clients that little changes and discipline can have a huge impact on their financial health curbs many client’s negative mindset about turning their financial life around.

Reframing the way we think about money can be difficult. But as an advisor, my goal is to provide an actionable plan that empowers clients and ensures they are building a healthy financial future. If you find yourself in a negative money mindset, don’t hesitate to reach out to your advisor. That’s why we’re here!

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