31) Know Your Financial Well-Being (part 1)
Meet financial planner Jessica Blood, CFP in the 1st part of her interview. She explains that financial well-being is not necessarily about wealth. Financial well-being is more about feeling like you have control of your finances as opposed to your finances having control of you.
Jessica is a cum laude graduate of the Boston University Questrom School of Business. She is a founding partner at PlanWise Financial Group. Her expertise is helping people make educated decisions about all aspects of their financial life and avoid pitfalls.
➤RESOURCES
PlanWise Financial Group: https://www.planwisefin.com
Free Worksheet: https://www.YourTruthRevealed.com
➤SUMMARY
How do you define financial wellbeing and the impact on mental health?
* Financial wellness is tied in with financial security. It’s focusing on what works for you instead of the masses.
* Human beings don’t like change and often experience financial paralysis.
* Financial security—that feeling of having enough to cover your financial needs—is unique to each person.
* It’s about how you grow and save your money to meet your changing life circumstances.
* Wealth is different from financial security. Wealth has to do with measuring net worth or the accumulation of money possessions.
* Money is one of the primary issues married couples argue about according to a 2017 study by Ramsey Solutions.
What is helpful to decrease financial stress in marriage?
* Finances is one of the top 3 reasons couples get divorced.
* Best gift to an engaged couple is to talk with an advisor. Be on the same team.
* It’s a mindset and goal setting. Do we have common goals? Inheritance? How do you make it fair?
Do you believe shame is the primary emotion that keeps people from experiencing financial wellbeing?
* Yes, there needs to be less shame and fear.
* It’s okay. More people have gone through it than not. You’re not alone. Can give that person the motivation to be comfortable in their own skin.
* Education is key.
* It’s common for men to talk about money with each other. Encourage women to do the same with each other.
* People feel intimidated about working with a financial advisor. They have expectations that aren’t real life. Let’s talk about them in a safe way.
What are 5 pieces of practical behavioral advice you give to people?
* Regardless of their income level, everyone faces decisions regarding financial planning. Become aware of your financial behavior.
1. Take inventory
2. Make a budget plan and stick to it. This allows you to be free and feel better.
3. Pay off all your debt
4. Practice gratitude and avoid comparisons
5. Allow motivation to help you continue to reach and surpass some of your goals.
What do you with everyone knew about finances and strategizing?
* Get educated. Dave Ramsey’s class does a good job of educating.
* Understand the difference between good verses bad debt. Pay of the bad debt first.
* * Put money is a 401(k)-retirement plan and 529 plan for college. Have emergency savings and retirement.
* Be accountable to someone.
* People want a plan! Maybe it’s retirement, buying a house, or a dream property. Have the plan and act toward it.
In psychology, self-awareness is important in overcoming problems. Do you see clients with a lack of financial awareness?
* I feel like a financial therapist. I ask clients about their childhood and relationship with money.
* How did you grow up?
* How did you think about money?
* What is your passion?
* What do you wish you understood better?
* What are some of the smartest decisions you ever made?
* If you can change one thing about your current financial situation, what would it be?
* There’s often a lack of knowledge.
* Talk to kids about financial awareness, including money earned and money spent.
* Understand who and what and why behind the answers. Educate people and understand who they are. Translate fear into motivation.