Jan 31 Video Wealth Health Tip 03 - Emotions

Written by John D. Buerger, CFP®.

John Buerger, CERTIFIED FINANCIAL PLANNER professional and Wealth Coach from ALTUS Wealth Solutions in San Luis Obispo, CA presents the most important Wealth Health Tip - "Consume less than your produce (spend less than you make). That's It.

That's a Big "Duh." Everybody knows this, right (or at least they should)? A theme of these videos is to state the obvious, but re-framed in ways you can actually use to your advantage.

A sea-change in your behavior is needed ... but that won't happen by me telling you what to do (a mistake most advisors make). You already know what to do. My job is to help you find a way to actually do it.

Let's look at this personal finance tip -- Spend Less than U make. We all KNOW this is true and yet very few people do it. Why? It's really quite natural -- you're hardwired that way. Spending money FEELS GOOD. Saving money is PAINFUL

Your brain is faced with a choice - "Spend money now" (party time, fun) or "Save for the future" (yuch). Your brain picks party time, immediate gratification almost every time.

But what if saving money wasn't painful?

We're not talking budget here. Budget is a 6-letter 4-letter word. What if you could actually spend MORE on the things that are important to you and pay for it by spending less on the stuff that doesn't matter?

You CAN -- and it starts with being aware of EVERY DOLLAR you are spending. For the next week, with every purchase you make, ask "is this important to me?" Also remember that a dollar spent in one place can't be spent someplace else (which might be really important).

Give it a shot and see how this does for you.

I'm John Buerger reminding you ...

Get Control Over Your Money BEFORE it Takes Control of Your Life.

Last time we talked about denial as being one of the main reasons people make poor financial choices. But there is another reason and it is just as important.

It's Fear Based Thinking - or letting your emotional circuits run wild.

The human brain is one of the most complicated data processors ever, developed over tens of thousands of years of human existance. And yet your brain really only has two major functions: keep you alive and prolong the species.

Here is some Brain Anatomy 101 - there really are THREE brains:

The first one (right by the brain stem) tells your heart to pump and your lungs to breathe and all those other things that your body just does without you having to think about it.

Outside of that brain is the emotional brain and it operates under three major factors: fear, food and sex - once again, keep you alive and prolong the species.

Outside of that emotional brain you will find the rational brain, the cognitive brain, the brain that makes "smart choices," except that for those smart choices to become smart actions, they have to pass right through the emotional brain.

If the emotional brain is on hyperdrive, it just says, "Nope, we're not going to let you do that, we're going to do what we want to do instead."

Your Video Wealth Health Tip is this: "When in the middle of a spending decision, try not to let your emotional circuits take over." For example, don't go to the store hungry (and we're not just talking about the grocery store). Making a purchase in any store on an empty stomach is asking to spend more than you want or is appropriate for you.

You can also try the delayed gratification route - just walk away, take a breather, get out of the store for 10 or 15 minutes and let those emotional circuits calm down. You'll find you make better choices.

You can also try emotional alternatives - values (those things in life that are most important to you) work well ... or better yet, just spend a few minutes being thankful for what you already have. Because when you're thinking about what you already have (and are thankful for that), your brain will release a lot of the same chemicals that it does when you are in the throws of an emotionally charged spending decision.

You see, spending money feels good - but it is not really the spending money part that feels so great. It is the ANTICIPATION of getting the reward that comes with spending the money - that's when your brain releases the chemicals that feel so good. If you can be thankful about something you already have and release those same chemicals, you can often short circuit your emotional brain hi-jacking your rational thoughts.

So give those a try and we'll have more for you next time. This is John Buerger reminding you …

Get Control Over Your Money BEFORE it Takes Control of Your Life.

Add your comment

Your name:
Your email:
Your website:
Subject:
Comment:

yvComment v.1.24.0