The mission statement of these blogs has been to help improve people’s relationship with money or at least start a conversation in which people re-evaluate how they perceive money.
A large number of studies in various different fields continue to look at why people handle money differently. Mental health charities such as Mind have reams of material discussing the relationship between money and mental health.
People will also tend to think a bad relationship with money, involves lots of impulse spending and debt. However, the inverse is also true with a relationship built on fear and miserly spending being equally harmful.
Spending some time evaluating this relationship is the key to building a healthier one. In our first three blogs we have looked at:
In this final blog we look at the fourth step, which involves the role of impartial advice.
Step 4: Get impartial advice
The fact that the financial advice firm is advocating that financial advice is key to developing a healthier relationship with money is not lost on us. However, the exercises we have discussed will all be enhanced through discussion and a lot of people find it uncomfortable to talk about money with their loved ones.
Your family and friends will all have their own emotional attachment to money, which very well may differ from yours and what is important about money to one may not be important to the other. Your financial milestones and plan will, and should be, as unique as you and there is a risk that their advice and plan will mirror what they value about money, not what you value about money.
Sitting down with an impartial, independent, adviser and having an honest conversation about your stresses, needs and goals can really add value.
This philosophy of understanding that we all view money slightly different, helping you understand what it is that’s truly important about money and then helping you build a robust, long-term financial plan so you can see what you are working towards is at the heart of good financial advice, and in our DNA at Carbon.
So to conclude this four part series on improving your relationship with money, let me quickly surmise the steps to starting a healthier relationship with money:
Hopefully everyone reading has found something useful in this series of blogs. For Carbon’s existing clients I am sure you will recognise lots of these points being raised in the conversations we have had and in the tools that we have used.
For anyone not yet a client who would like to discuss in greater detail, please get in touch for an initial free-of-charge conversation with one of our planners.
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