Updated: Oct 1
Tell me if you’ve heard any of these:
“Money has no emotion. It’s just dollars and cents,” or “We need to keep our emotions out of our finances.” I hear them all the time in the financial industry. The problem with these philosophies is that we are human. As humans we have the ability to feel emotion, and, like it or not, it permeates everything we do. I have been talking about this connection between your mind and your money for years. Here are some ways I’ve helped clients with their money mindset.
How can these conversations help you?
The first story I think of when addressing emotional money is when a spouse or partner passes away. This is an all-around awful time. Just like it is difficult to clean out their closet, it can be just as taxing to address the financial needs of the household without your partner there for support. I have helped clients navigate this major life change with patience. As long as the bills are getting paid and you and your family are healthy, safe, and cared for, everything else can wait. You don’t have to deal with that old 401K. You don’t have to close the checking account. You DO have to grieve. Don’t ever let a financial planner push you to make changes that you aren’t ready to make.
How about the emotional nature of retiring?
There is a lot of emotion during this phase of life. First, you are faced with understanding your new identity. Your primary role will no longer be attorney, carpenter, or teacher. How do you let that go when you’ve spent so long and worked so hard to excel in that profession? Through my connections in the community, I have helped clients identify their interests and find ways to participate in those activities. It creates activity and purpose.
Where your money comes from is emotionally jarring too!
The steady paycheck will stop and drawing from savings will begin. This is an especially difficult change to cope with. Your entire working life has trained you to earn, spend, and save. What happens when the only option left is to spend? Watching your savings account balance decline can be painful. I help clients make good financial decisions to help their money go further and lessen the pain of those savings withdrawals.
There is no doubt that our emotions impact our financial decisions.
If you have a financial planner who is only in the game to sell you something, it is time for a change. Please call me for a complimentary strategy session and you’ll discover the authenticity and genuineness I bring to each interaction. I am looking forward to hearing from you!
Christina Gatteri, CFP
Certified Financial Planner
Warwick, Rhode Island 02886