Have you ever struggled with the inner turmoil of splurging on something luxurious, even when you knew it wasn't the best financial decision? Or maybe you've found yourself frozen in a state of indecision regarding important money matters because you were afraid of making the wrong choice? If so, you aren't alone. We've all been there, and the good news is that these feelings are normal and completely overcomeable.
Where our beliefs come from
We all have a set of beliefs about money that we've acquired over the years. Unfortunately, these beliefs can sometimes act as roadblocks to our financial stability.
Many of these internalized attitudes come from our childhood. Even if we didn't realize it at the time, what our parents said and what we saw them do shaped our financial lives. The process is often described like this: Until puberty, we're like little tape recorders, absorbing everything around us. Then, about the time we hit puberty, we stop recording and hit the play button.
Culture and religion play a huge role, too. They teach us lessons about earning, spending, saving, and giving. You might have absorbed ideas ranging from "the stock market is a gamble" to the concept that you should "donate a percentage of your income to those less fortunate." As adults, we often don't even realize where these beliefs originated.
If those beliefs help us make great decisions, that's wonderful. But all too often, they get in the way. For example, suppose your parents didn't understand investing and told you that the stock market is dangerous. You might choose "safe" investments that leave you far short of your financial goals. On the other hand, if you absorbed the lesson that you should live for today and not worry about tomorrow, you might one day find yourself with a mountain of credit card debt and no savings.
Taking the first financial step
Recognizing these patterns is the first step, but getting started isn't always easy. Some people feel uneasy about opening the books on their financial life to a complete stranger. It's common to worry about being judged or compared to others who appear to be doing better financially.
Here is the reality: It doesn't matter how well others are doing. What matters is how you're doing and what progress you're making toward your priorities.
If you feel ashamed or anxious, know that financial planners have heard it all before. A good financial planner won't judge you for where you are. They will help you get where you need to be.
Working with a financial planner
Think of a financial planner as a partner who can help you navigate your financial beliefs and needs to achieve true wellness. A good professional serves as a way to correct some of those early messages and begin internalizing new, healthier ones.
Chances are, your roadmap to financial health involves several major questions:
- Should you invest more or pay down your mortgage?
- Should you save more for retirement or your child's dream college?
- Should you buy or lease a car?
The right answers aren't just about how well a given investment performs. The best solutions for you need to include your attitudes toward debt, your feelings about risk, and the value you place on your financial goals. How important is it to you to be debt-free? To own a home? To pay for your child's education? There's no single right answer, only the one that's right for you.
What kind of financial planner to choose
Although there are many types of planners, the gold standard is a CERTIFIED FINANCIAL PLANNER™ professional, also known as a CFP® professional. These pros undergo rigorous education that covers everything touching your life financially, from investments and planning to taxes, insurance, and estates.
The industry is waking up to the importance of the human element. In March 2021, the CFP Board, which manages this designation, announced it was adding a unit on the psychology of financial planning to the exam these professionals must pass. The board recognizes that your planner should understand not only every aspect of finance but also you as a person.
The Facet difference
Financial planning is about more than compiling spreadsheets and making investments. At Facet, we believe a great financial planner should be able to connect with you on a personal level, understand your goals, and make you feel secure as you share your financial history.
That's why every financial planner at Facet is a CFP® professional. We're here to help you build your best life, completely judgment-free. Our membership-based model ensures our advice is always objective and centered on your values, helping you achieve financial peace of mind without the sales pressure.
