Behavior Gap Radio

Looking for Permission by Carl Richards: Human Behavior, Creativity, Behavioral Finance

Over the last few years, behavioral finance has become a hot topic. The interest is due, at least in part, to Jason Zweig's book, Your Money & Your Brain. It's not a book that you read in one sitting. In this review, I cover why I still find it so helpful years after I first read it. To learn more about being a real financial advisor, sign up for my mini course at behaviorgap.com

We've reached the end of our series on Talking About Money. I'm sure I'll come back to this topic again, but today, I want to leave you with plea. Both as advisors and human beings, don't give up on this discussion. You are going to bump up against uncomfortable things during these discussions. That's OK. Embrace it. Work through it, and don't ever stop talking about money. To learn more about being a real advisor, visit behaviorgap.com.

Whenever you're talking about money, be it with clients, your partner, your spouse, everyone gets a time out. You must honor this need to hit the pause button, particularly when things head south, and it becomes clear that emotion trumps everything else you're discussing. You can come back in a few minutes or wait until the next meeting, but good conversations about money will probably require taking a break. To learn more about how to have these conversations, visit behaviorgap.com.

Finding Enough by Carl Richards: Human Behavior, Creativity, Behavioral Finance

Basement thinking. It happens to the best of us. We've had a long day. We're stress from work. We're just done. Then, something happens. The AMEX bill gets opened. Somebody mentions how much they miss the beach. Because we're in the basement, our first instinct is to throw a verbal dagger. "How could you spend that much?" "Of course, let me work harder so you can go to the beach." You know what I'm talking about because you've either done it or had it done to you. Just stop. Take a deep breath and hit the pause button. To learn how to have better client conversations, sign up for my free mini course at behaviorgap.com.

To keep breaking our money-talking taboo, it helps to think about three things: time, place, and energy. We shouldn't avoid money conversations, but we also should make sure that we have the energy to deal with the emotions. So if the right moment presents itself, don't miss the chance to have that conversation, but I also encourage both clients and advisors to schedule a regular time and place to have these conversations so we don't avoid important discussions. To learn more about being a real financial advisor, sign up at behaviorgap.com.

One of the most important things you'll need to remember about money involves a hat. It's the No Shame, No Blame hat, and you'll need to wear it during your personal money conversations, and you'll need to encourage your clients to wear it during there's. Because as experience and research has shown, shame doesn't help us have the kind of conversations that will lead to better decisions. To learn more about being a real financial advisor, visit behaviorgap.com.

When we talk with clients about money, we need to find ways to remove ego from the discussion. One of my favorite tools is the Overnight Test. It gives people permission to back away from earlier investing decisions and make much-needed course corrections. It's also a great way for dealing the emotions we've invested in some of our financial decisions. To learn more about being a real financial advisor, visit behaviorgap.com.

Get Off the Treadmill by Carl Richards: Human Behavior, Creativity, Behavioral Finance