Financial Idioms and What They Might Really Mean…

Today, our conversation is on the subject of language and the terms or “financial idioms” we use to describe our finances. Perhaps these statements suggest a picture of our “real” feelings.

Podcast Details:

Podcast Title:  Financial Idioms and What They Might Really Mean…

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Link to Show Episode

Today, our conversation is about the language we use around our finances. You may or may not believe that words are just containers for our emotional thoughts.  What we speak or say about something is truly how we feel it about.  Note:  Ever been around someone at Happy Hour and they start to reveal “TMI” (aka too much information)????

When it comes to our finances there are several things that we say or have heard others say that are popular in our language (“financial idioms”) and I think these statements have an underlying meaning that could really reveal a lot about where we are financially and/or emotionally.

For example…
  • My spending is “out of control”.  What does that mean?  Well at first glance, you’d say that this person is recognizing a lack of discipline with how much they spend possibly in relation to what they make.  But think about what it looks like when other things are out of control or get out of control (e.g. a car).  To say that your spending is “out of control”, you may very well be dealing with a discipline issue.  But, aren’t you really saying that you don’t know what you are doing? You are likely playing in an area where you need more education/knowledge.  Another saying similar in connotation could be “living paycheck to paycheck” or I keep having to “rob Peter to pay Paul”.  All these statements suggest a lack of knowledge in regards to implementing a strategy to allocate resources properly.
  • I hear a lot of individuals say “they don’t have enough time”.  Similar statements could be:
    • I can’t afford to do that
    • I wish I had more time to do that
    • I’m too old for that

All these statements relate to an issue of stewardship.  Stewardship is just an old word that means to “manage” something–which is by the way, different from ownership.

NEWSFLASH:  You are really the owner of nothing.  

All successful and wealthy people understand this concept which is why they are so content with giving away what they have because they realize they are ultimately stewards. People like Bill and Melinda Gates and Warren Buffett do things like the “giving pledge” because they realize that they are not owners, they are just stewards.  To me, when people say “I can’t afford to do that”, or something similar it tells me they don’t really understand their role as a manager/steward.  Stewards are in control of an asset.  And can manage it to their wishes, but eventually, have to give an account to the owner for what they have done.

Consider your time as an asset, in which you have full control on how you spend it.  Therefore, it is imperative that you utilize or spend that time responsibly since you receive the same amount as anyone else.

#finlit
#behavioralfinance
#behavioraleconomics
#moneymindset
#financialidioms

 

Helpful Links:

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com

The Social Cartographer Series: Monitoring

How important is it to have a map when traveling to a destination? Using maps is a very reliable means of navigation. We also use mental maps to navigate our lives. This series is a discussion of our financial maps.

Podcast Details:

Podcast Title:  The Social Cartographer Series:  Monitoring

Podcast Series: The Maven’s Keys to Financial Contentment

The Maven’s Keys to Financial Contentment is my idea that true financial contentment can be found when an overlap of money and beliefs occur.  Many people ask the question of how to be “financially content” and this is a discussion to uncover those answers.

Link to Show Episode

So last week we talked about “PRESCRIBING“…and today we’ll cover “MONITORING”.

So a brief recap…

In DIAGNOSIS we have to have a DESTINATION DECISION and DESTINATION ADJUSTMENTS.  This is inevitable.  Although possible, it is rare when you are traveling long distances that you won’t have to make an adjustment to the route and/or itinerary.  Well, the same with reaching your financial destination.  Inevitably, some life event, job change, or recession (God forbid!) will happen to cause you to make route adjustments to your financial map.

This is the reason we put a plan in place!
In PRESCRIBING, it’s important to realize this is all about behavior adjustments.  This can only happen after you realize that the results you are getting aren’t the ones you want.  You have to first acknowledge this and then change your belief system so your behaviors change.
In MONITORING, we are trying to maintain a steady pattern of progress on our way to FINANCIAL CONTENTMENT (if you are not already there.)  The tricky thing about this is that as we begin to have success, it is human nature to get distracted.

Often the path that creates success is not the path that sustains success.
We do so much as it relates to discipline and focus in order to build momentum that will carry us towards success.  But then as we begin to have it, we will begin to let “success” take over.  An example being, more hours at work means less time with family and other relationships.  So how do I as a financial planner help with this paradox of GOAL ACHIEVEMENT equals SACRIFICE of [insert here whatever you value]?
Well, the answer is with care because it can be difficult.  Take a corporate executive that values the PRESTIGE of his or her position versus the PEOPLE you can reach in the position.  Which do you think is easier to maintain?  How long before it becomes evident to those around this person that PRESTIGE is valued over PEOPLE?  And which is easier to marshal your resources behind?  A team will always rally behind the cause of “serving the customer” instead of your climb up the corporate ladder.
This is where my formula for financial contentment really helps.  Because to be content you can’t chase success (of any variety) as the goal.  The goal has to be DEEPER.  This is so you never end up sacrificing what you believe or value for the success.

#finlit
#finance
#financialadvisor
#moneymindset
#behavioralfinance
#behavioraleconomics

 

Helpful Links:

About Me:
Dominique Henderson, CFP® is founder of DJH Capital Management, LLC., a fee-only, registered investment advisory firm specializing in comprehensive financial planning and wealth management.

#FinancialLiteracyBootCamp

Sound bumps provided by www.bensound.com