There are so many aspects of behavior change in financial planning. Behavior change is the start and in the end, better financial planning is the result. Some of the bigger areas of planning are investment selection, tax planning, and saving for retirement.
Cash flow management, estate planning, and asset location are other important items. A lot of thought, feelings, and emotion go into each of these.
There’s a lot at stake, but there’s no need to stress.
Knowing Your Behaviors
Perhaps you are stressed about finances and you just don’t realize it. It’s the way you normally act with money and you don’t feel “stressed out.”
Have you ever taken a good, hard look at your behaviors with money? Typically, individuals exhibit behaviors from the four money scripts. They are:
- Money avoidance
- Money worship
- Money status
- Money vigilance
You can have one money script or have behaviors of all four. Each one is very complex, but here’s a quick summary of each.
Money avoidance is just how it sounds. Someone with this behavior thinks the rich are greedy and it’s not okay to have more money than you need.
Next is money worship. It is the thought that money buys freedom. Money can always make you happy.
Third is money status. People associate their self worth with their net worth. It’s good to want new things.
Finally, there is money vigilance. Money is a private matter and it’s extravagant to spend on yourself.
Tiny Tweaks
These scripts are not bad. We all have them. However, if one or several of them are leading you down a destructive financial path, then it may be time to reassess your behaviors.
Once discovered, your work can begin on changing them to lead to a better financial life.
When you work with a financial planner, they can help you identify these scripts, and help you adjust them accordingly.
You’ll get better financial results, reduce your stress, and have more time to spend doing what you love.