How can individuals cultivate a sense of contentment and focus on personal financial goals without falling into the trap of comparing themselves to others?

Eric Pennington talks with financial planning expert Mike Perez, CFP, CKA, CAP, to discuss the critical connection between our emotions and money decisions.

Throughout the conversation, they tackle the challenges of financial planning, including managing emotional influences.

The episode also covers practical advice on managing finances during politically turbulent times, the pitfalls of emotional spending, and the importance of honest financial disclosure akin to a medical consult. Mike and Eric discuss the science of reducing client anxiety and the essential role of financial advisors in helping clients avoid emotional pitfalls in investment decisions.

This episode reveals how emotional intelligence plays a pivotal role in achieving financial peace, contentment, and smart decision-making.

Top Takeaways

1. **Timing and Deals**: Mike Perez advises the importance of finding deals at the right time, advocating for strategic patience in financial decisions.

2. **Contrarian Investment Strategy**: The discussion highlights Sam Zell's approach of investing against the norm, suggesting this can often lead to better financial outcomes.

3. **Historical Wisdom**: Mike recounts a story about Joseph Kennedy who exited the stock market before the Great Depression, illustrating the value of recognizing when to step out of the market.

4. **Client Engagement and Fit**: Effective financial planning requires clients who are coachable, open to sharing information, and have legitimate needs. Ensuring a good fit between advisor and client is crucial.

5. **Impact of Emotions**: Both Eric and Mike emphasize how emotions heavily influence financial decisions, often leading to poor financial choices if not properly managed.

6. **Communication in Couples**: Financial planning often involves mediating between couples to ensure shared goals and effective money management, crucial for preventing relationship strain and divorce.

7. **Spending Plans and Emotional Regulation**: A structured spending plan and taking breaks to curb emotional spending can lead to better financial decisions and less impulsive spending habits.

8. **Forward-Thinking Over Comparison**: Mike recommends focusing on future goals instead of making decisions based on comparisons with others, to avoid dissatisfaction and financial missteps.

9. **Behavior Over Information**: In the age of accessible information, Perez stresses that personal beliefs, behaviors, and emotional intelligence are more valuable than mere knowledge.

10. **Integrating Faith with Finance**: The integration of faith into financial practices can lead to greater peace, joy, and contentment, as exemplified by Mike's personal journey and insights shared in his book on faith, finance, and generosity.

Key Moments

00:00 Early money beliefs impact adult financial behavior.

05:39 Financial planners assess clients' money beliefs.

09:51 Focus on contentment, avoid comparison and regret.

13:50 Invest without emotion; prioritize long-term objectives.

14:40 Rely on certified financial planners for advice.

19:07 Coachable and vulnerable clients are essential for success.

22:55 Stress-free zone; assess working relationship fit.

25:04 Full disclosure essential in challenging relationships.

28:26 Forces busy couples to address financial planning.

31:41 Balance spending: Pause before emotional purchases.

35:12 Money management: owe, grow, live, give categories.

40:04 Education fails to teach healthy money habits.

42:10 Behavior tied to emotions is very powerful.

47:32 Faith-inspired financial journey fosters peace and generosity.

49:25 Politics feels overly prioritized, similar to money.

54:26 Sharing wisdom and stories through life's journey.

55:16 Impact one life at a time matters.

Michael has over three decades of experience as a Financial Advisor. He currently is a partner in a national biblically-based wealth management firm where he oversees the Columbus, Ohio office. He holds prestigious credentials including Certified Financial Planner (CFP®), Certified Kingdom Advisor (CKA®) and Chartered Advisor in Philanthropy (CAP®). He is also the author of "Faith and Finances - Embracing Biblical Principles for Financial Success and Generosity". He is one of the leaders of the faith and finance movement in Central Ohio.

Michael is on a mission to encourage as many people as he can to live out their faith through their finances by embracing biblical principles for financial success and generosity. He has written a book on this topic. www.faithfinancesbook.com.

He is a partner at a nationally recognized, biblically based wealth management firm headquartered in Fort Wayne, IN, where I oversee the Columbus, Ohio office.

He can be reached at 614-505-0865 or email Michael@faithfinancesbook.com

Scott Galloway podcast link referencing Intel

In each episode, Jeff and Eric will talk about what emotional intelligence, or understanding your emotions, can do for you in your daily and work life. For more information, contact Eric or Jeff at info@spiritofeq.com, or go to their website, Spirit of EQ.

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Spirit of EQ

Mentioned in this episode:

SEQ Development Report

The SEQ Development Report is an innovative tool that combines emotional intelligence with one's spiritual life, distinct from religious contexts. The report helps individuals understand their connections with themselves, others, and their surroundings. It aims to identify areas in their lives that may need improvement and highlight their strengths, ultimately facilitating better navigation through life. To obtain the report, individuals need to contact Spirit of EQ via email at info@spiritofeq.com and complete an online assessment that takes about 15 to 20 minutes. After the assessment, a debrief session is required to review the comprehensive information provided in the report. Spirit of EQ also offers further coaching to support individuals in their personal development journey.

The Emotions and Money Connection with Mike Perez, CFP, CKA, CAP

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