Most people call it mindset. I call it mentality. Why?
Because mindset is all about what’s happening in your conscious brain and when your clients experience Lack-Based emotions they come from the subconscious brain. At Presidential Lifestyle we label the subconscious brain as mentality. These thoughts, feelings, and the behaviors that go along with them have been going for years. Long before they were your client.
In the world of financial advising, professionals often encounter the intricate realm of emotions tied to money. In the previous blog post, we explored Fear-Based Emotions. Today, let's talk about Lack-Based Emotions. You may have heard of this referred to as limiting beliefs. And you may not think your clients have them because they already have financial success. But what if they could have more. And by more I mean more than money; meaning, purpose, personal success, fulfillment.
In my research I’ve narrowed Lack-Based Emotions down to four common emotions -
These four common emotions can profoundly impact the financial decisions of wealthy clients. Understanding and addressing these emotions is essential for fostering a healthy relationship with your clients so they don’t make it harder for you to grow and preserve their wealth.
I’ll give you a few things to be aware of and in the community, I’ll share a few more things you can do to guide your clients toward a path of financial fulfillment. These tools, when implemented properly, make managing Money Emotions much easier.
Not Good Enough:
Many affluent individuals harbor feelings of inadequacy, despite their success. The notion that worthiness is contingent upon external achievements gets ingrained in all of us by our families, friends, and society. If you don’t fit societal norms, even if you have accumulated wealth, you may still feel like you're not good enough. Your clients are not exempt. They are feeling this way too.
Rewrite the Story:
Your clients have already conquered mountains of success, yet a sneaky little voice whispers, "You're not good enough." It’s not your fault they have these feelings but it can come between you and the service you are providing them. So it becomes your responsibility to guide them. Shift the focus from external validation to self-acceptance and appreciation. They may come into your office with arrogance and pride but those emotions are pushed to the front to compensate for the feelings of inadequacy. You don’t need to tell them about all the outside things society has already validated for them. Focus more on their internal strengths and how they will hold to their core values.
Need To Do More/Not Working Hard Enough:
Hard work is the key to success, that’s what society says. But how many hard working, broke, unsuccessful people do you know? That’s because hard work isn’t the real measurement. But your clients don’t know that. That’s why wealthy people, especially first generation wealth, often exhibit workaholic tendencies.
The relentless pursuit of more can become a burden for wealthy clients. The fear of stagnation and the belief that they must work harder to be deserving of not only success and wealth, but love and acceptance. These burdens can lead to burnout and poor financial decisions. As advisors, it's essential to emphasize the value of work-life balance and highlight their existing achievements to alleviate the pressure to constantly prove themselves.
Success is not guaranteed, so some amount of effort and consistency is key, but clients have to create a formula that includes their core values along with their true heart's desire. Society's formula is misleading and usually doesn’t add up to happiness. Which is what your clients are ultimately working so hard to achieve.
Balancing the Scales:
Your high achieving clients don’t usually need help with motivation to get started or even keep going toward their wealth accumulation goals. They need motivation to stop or at least slow down and look at what’s most important. The hustle never stops for your high-achieving clients. Encourage them to find harmony between work and play, allowing their passions to fuel their ambitions. They've already got the drive; now it's time to rev up the joy and enthusiasm, along with the ability to relax.
Self-Worth or Value Tied to a Dollar Amount:
Self-worth can become intertwined with financial success. As advisors, you didn’t receive training on how to guide your clients toward a healthier perspective of self. This blog post isn’t going to give you all you need but it’s a start. You can get more when you join the Presidential Lifestyle Community. I’ll even share with you a resource that you can offer your clients that will take all the burden of Financial Therapy off of you.
When you’ve been chasing wealth or been wealthy for a long time, it can be hard to separate yourself from the titles and accomplishments. Money does not define one's worth as a person. It’s about who they are, not what they have or can do for others. If you notice your client people pleasing, showboating, or trying to keep up appearances so that they are loved and accepted, ask them this one question.
“What are you hoping to accomplish by….?” For example, “What are you hoping to accomplish by donating to every charity your friends and family suggest to you?” Listen and then follow up with, “Let’s talk about ways to accomplish this goal that are more aligned with your values and financial plans.” Shift their attention to things they have more control over and that will give them the feeling they are seeking.
The Constant Need for More:
If clients think they aren’t good enough they will use material things to fill the voids they feel. This is captured more in Lust-Based Emotions which we will talk about next week, but understand that clients can chip away at accounts by buying fleeting pleasures that don’t add up to real fulfillment.
Clients who perpetually seek more money, time, energy, or even love often find themselves stuck in a never-ending cycle. That cycle looks like this…
Buy something>>>feel pleasure>>>pleasure subsides>>>feel empty>>>buy something else>>>feel pleasure>>>pleasure subsides>>>feel empty…
The longer they have been repeating the cycle the faster they will get to feeling empty again. Addressing this emotional cycle requires shifting their focus from external acquisitions to internal fulfillment. Help them recognize that contentment can be found within themselves and their current circumstances. Encourage mindfulness practices to promote gratitude and break free from the insatiable desire for more.
I’m likely taking you way out of your comfort zone. Talking to your clients about meditation and gratitude practice might be outside your soak of work, especially if you don’t practice it yourself. That’s understandable. We can work together. Allow me, someone who practices meditation twice a day, to guide them in this area. They will thank you later, because the endless pursuit of "more" can be exhausting.
Help your clients pause and appreciate what they already have. At least once a year reflect on what’s going well. I know this can be scary because the market isn’t up every year, but that’s exactly why you have to get in the practice of doing this. You’ll spread the focus among the obvious things like their account increase and the not so obvious things like the milestones they were able to accomplish in other important areas of life. Embrace the power of gratitude and watch as it transforms their perspective.
Lack-Based Emotions can lead to costly mistakes in wealth management. Clients may overwork themselves, take excessive risks, resist trust, or resist change, fearing any potential loss. Guide them towards balanced decision-making, grounded in rationality rather than emotional reactivity. Emphasize the importance of a diversified life and portfolio. If they are stuck in a rut because they are afraid to make a mistake they can miss out on valuable opportunities.
Remember the Fear-Based Emotions we addressed in last week's blog? Lack-Based Emotions share a few similarities with them. Your clients may be afraid to make financial decisions, fearing they'll lose what they have or make an embarrassing mistake. The conscious brain knows that it’s not as much of a risk when it’s calculated, but they are operating from the subconscious brain when they are emotional.
Encourage them to address the old beliefs and misconceptions to open up and embrace an exciting opportunity for growth. By transforming their relationship with money and cultivating self-awareness, they can harness their wealth to its fullest potential.
Getting More Support:
Emotions are complexed. To further support your clients in their journey towards financial freedom and emotional well-being, consider recommending A SelfSync Clarity Session to them. This way, you don’t have to be responsible for addressing the problems money can’t fix. You can leave that to me and my team. They will have the options to do it in a group setting or a one-on-one setting. If you'd like to know more join the community and ask me how it works.
You can get more details about this program when you join the free Presidential Lifestyle Community. This community provides valuable resources, networking opportunities, and a supportive environment for individuals seeking a holistic approach to wealth and fulfillment. Learn more about the benefits of joining the community by clicking here.
Navigating Lack-Based Emotions is a crucial aspect of financial advising, particularly when working with affluent clients. Even though it appears they have it all, the feelings of lack are associated with what they believe they don’t have. You are a partner in your clients' journey towards a more fulfilling and purpose-driven life. Together, we can unlock the true potential of their wealth - one that encompasses both financial prosperity and emotional well-being.
Life is about more than money, it’s about meaning.