No matter how much wealth your clients possess, it's never enough to shield them from a range of challenging emotions. As a financial professional catering to the affluent, you know that money doesn't always provide a complete sense of fulfillment. The emotions that come into play - sadness, loneliness, guilt, and feelings of inadequacy - can be overwhelming. Surprisingly, your clients might turn to their wealth in an attempt to find solace, but is it truly the answer?
Money can absolutely buy the things that make you happen and give you the time freedom to spend with the people who mean the world to you, but having wealth doesn’t guarantee happiness. For the past two decades, I've dedicated myself to researching money emotions, understanding their impact, and helping financial professionals like you address the issues that money can't fix. I'm Kiné Corder, the lead National Certified Counselor with a special focus on Financial Therapy for wealthy business owners.
Today, I'll introduce you to the 4-Types of Money Emotions that your clients are likely to experience. Recognizing these emotions will enable you to better serve your clients, bringing attention to their unique struggles without acting as a therapist. Remember, we'll take this journey one step at a time, as we walk through these complexities that can be both eye-opening and challenging.
Fear Based Emotions:
Our society has conditioned us to believe that more money equates to greater happiness. Yet, this isn't always the case, and your clients may find themselves trapped in a cycle of fear and uncertainty. A well-crafted financial plan might look excellent on paper, but if it doesn't align with their emotional needs, fear will set in. Debt can also amplify these fears, especially when it becomes burdensome.
Using other people’s money is good when you can get it cheap, but the more expensive the debt is, the more emotions your clients will experience. As their trusted advisor, it's essential to consider the emotional implications of your financial strategies and ensure your clients feel secure in their financial journey. It’s also important that you aren’t afraid of your clients emotions because they need your level head and stern guidance. However, you’ll also need to be a gentle guide from time-to-time by understanding what they are going through.
Lack Based Emotions:
Even amidst immense wealth, some individuals may grapple with feelings of inadequacy and scarcity. Billionaire Glenn Stearns and his wife shared a funny story about his Lack Based Emotions during an interview on the Dropping Bombs podcast. He confessed to feeling uneasy about his wife taking the toll road to save a few dollars—a seemingly insignificant amount for someone of his financial stature. Yet, this incident triggered his Lack Based Emotions, causing him to obsess over minor expenses that won’t affect his overall wealth.
These emotions can also arise in clients who are first-generation wealthy, still carrying memories of financial hardship, or second-generation wealthy, haunted by reminders from their parents or grandparents. Though uncommon, stressing over trivial expenditures, like a few extra toppings, showcases the impact of Lack Based Emotions. Striking a balance between responsible financial management and unnecessary deprivation is essential for your clients' emotional well-being.
It's crucial to help your clients address these emotions and develop a healthier perspective towards wealth. Navigating Lack Based Emotions can transform their financial journey from one of scarcity to one of abundance and contentment. Money can come and go and success isn’t promised, so having a sense of consciousness when it comes to money is important. Remember, it's not just about accumulating wealth; it's about nurturing emotional wealth too.
Lust Based Emotions:
In my research I’ve found that men who value status often experience Lust Based Emotions. However, women that lean on their masculine energy or who are in male dominated industries often have these Lust Based Emotions too. Lust Based Emotion can stem from a misunderstanding of money's true meaning and purpose.
Money doesn’t necessarily change you, it gives you a vehicle to show more of who you are and what you value. The negative emotions can get in the way of the true you. Helping your clients navigate these emotions can prevent potentially costly decisions and protect their long-term financial well-being. There are positive money emotions like peace of mind, freedom, and harmony. These emotions are healthy and don’t require a therapy session.
Watch out for Lust Based Emotions because the shift from feeling good to feeling bad can happen fast. The obsession and focus on accumulating more can add zeros to your clients account, but the risk that they often take associated with the lust could take all those zeros back, plus more. Lust Based Emotions are often the most costly.
Lonely Based Emotions:
Loneliness isn't restricted to emotional or social aspects—it can also manifest in financial behaviors. Childhood experiences, such as neglect, both parents working outside of the home, or frequent relocations, can leave voids that individuals attempt to fill in adulthood through material possessions, excessive social engagements, or addictive behaviors. As a financial professional, it's vital to identify these patterns and offer support to help your clients lead fulfilling lives beyond their wealth.
When spotting addictive behaviors don’t just look for negative additions. Your clients may be workaholics, workout fanatics, or shopaholics. On the surface it may look innocent but if you ask the right questions, which I can provide you with, you’ll see there’s something deeper.
There’s more to learn about each of the 4-Types of Money Emotions. I've only scratched the surface of these intriguing financial sentiments. I plan to break each one down in a separate blog post that you can refer back to when I’m not available to answer your questions in the community. Make sure you are subscribed and come back each week as we continue the conversation.
Understanding the root causes and the mistakes clients make in their attempts to overcome their money emotions is crucial. Ultimately, you want to equip your clients with the tools to manage their emotions effectively. However, for the more complex and private cases, consider introducing them to a specialized Financial Therapist like myself or others with expertise in working with wealthy clients.
Money emotions affect everyone, regardless of their wealth. Your role as a financial professional goes beyond managing assets; it involves guiding your clients through the emotional journey of their financial lives. By joining The Presidential Lifestyle Newsletter and Community, you'll gain access to valuable insights and tools to assist your clients in finding their Calm Optimal Brain State. Together, we can ensure their emotions don't overshadow their financial success, leaving them ready to embrace a fulfilling and prosperous life.
Just so you know, in the community I go live once a month to share phase one of the 5-Phase Action Plan for Creating Your Presidential Lifestyle. At the end I open it up for questions. So if you have a tough client, let me support you in serving them. Also, in the newsletter I feature a Financial Advisor and the type of work they specialize in just in case you need a colleague’s expertise.
Let’s all work together to alleviate human suffering associated with money. If your clients can manage their own emotions and you can focus on what you do best, managing their money.