Everyone has different motivations for gaining wealth, and while money can give you choices, it cannot give you happiness.
As an advisor, you might be wondering why this matters to you. Money has its limits and the way a client chooses to spend theirs is very telling of their character.
Some are “emotional” spenders; they use spending to “fix” an emotional problem or to fill a void.
Emotional spending can also lead to emotional decision-making, which can take its toll on investment decisions.
Keep your clients on track with their goals and minimize emotional spending with these tips.
If your client is prone to making large purchases during emotionally-charged episodes, encourage them to take a step back.
Acquiring things can feel great in the moment, but expensive, unplanned purchases can derail financial progress and set them back on their goals.
Encourage your clients to determine a monthly/weekly/yearly amount of “fun money,” so when the need to splurge comes they have the funds, and when the funds are gone, that’s the “fun” ends.
There’s always going to be a newer model of the smartphone, tablet, television, laptop and so on. But that doesn’t mean with each new product there should be a new purchase.
Spending on technology can seem like a necessity because we rely on them so heavily for personal and business needs. Setting boundaries for when your client upgrades their technology will minimize excessive spending.
In other words, encourage your clients to live within their means. “Comparison is the thief of joy,” and setting goals or spending simply to impress others won’t bring happiness.
Creating a budget with your client can mitigate the risk of spending irresponsibly on things like cars, clothes, gadgets and other extraneous items.
Achieving big goals is much more satisfying than a million smaller, unnecessary purchases. Once you and your client have established goals, keep them accountable.
For clients that struggle with staying on track, set a schedule of regular check-ins or meetings to assess their progress.
The client experience is just a part of achieving Seven Figure Success. In my book, Seven Figure Firm: How to Build a Financial Services Business that Grows Itself, there are five keys to Seven Figure Success:
When you Spend the Day, advisors will learn these five keys along with the proven blueprints that show exactly how to build a self-sustaining seven-figure financial services business without working more hours.
Reserve Your Spot for our January 2018 workshop!