types of financial investors PAX Financial Group

How Do You Really Feel About Money? Let’s Find Out

holistic financial planning, Financial Planning, retirement Jan 22nd, 2019 by: Darryl Lyons

What kind of investor are you? What’s your money mindset? What’s important to you when it comes to money? You might think you know, but do your spending habits and thought process back up your beliefs? It’s time to find out!

PAX Financial Group recently partnered with United Capital to offer clients a look into their “Money Mind” – an online survey that asks seven simple questions about your spending and financial beliefs. A detailed summary of the findings is then emailed directly to you. And the results are telling.

Do you generally make financial decisions based on your personal happiness and not the long-term effects of your overall financial plan? Or, do you think too much about your plan and therefore restrict yourself from enjoying life? The perfect answer should be a mixture of both. And only when you fully understand how you actually feel about money can you fully understand and change your habits.

The questions asked are simple and non-intrusive, yet shed a lot of light on a person’s financial thinking. For example, the survey may ask questions like:

  • Your friends want to renew their wedding vows. You think:
    • Beautiful! What can I do to help?
    • Sounds expensive, but good for them!
    • I hope they pick some place fun!
  • When holidays approach, how do you feel?
    • Looking forward to buying gifts my loved ones can use.
    • It’s so expensive shopping for gifts.
    • Looking forward to going shopping!
  • The latest must-have device is released. What would you do?
    • What I have works – no need to spend money.
    • Buy it for my loved ones.
    • Buy it – I like the latest and greatest.

The answers are different for each of us.

 

Ready to find out how you really feel about money? Contact PAX Financial Group to get started.

 

The Results 

We as individuals don’t always understand why we work and what money is for. Distractions often get in the way, creating noise that can cause us to overreact or make a decision out of emotion, which can be extremely dangerous.

Our priorities can also change as we pivot into the different phases of life – things may be different when you’re starting out, having kids and starting a new job, as they are when you’re about to retire or begin to enjoy life without having to work. Regardless, it’s important to know your underlying thoughts about money, spending and saving. Once you know how you commonly react to certain situations, you can base habits and establish boundaries if necessary.

Understanding why you make financial decisions the way you do can help identify issues and establish spending habits that work for you, ultimately creating a financial plan based on your individual goals in retirement.

At PAX Financial Group, we look at why you do what you do when it comes to money, and then try to connect your attitude about money to your actual life.

 

The Commitment, Protection and Happiness Mindsets

There are 3 common financial mindsets:

  • Commitment
  • Protection
  • Happiness

Most people are some combination of these.

A commitment mindset tends to derive joy from giving and may lead to a fear of letting others down. Commitment-minded people tend to prioritize supporting the people and causes they care about, and saving (you can run short on funds for your own needs as you support others). 

A protection mindset is often motivated by fear, and as such, investors may tend to value security and peace of mind. A protection mindset may mean you often focus on cost, delay gratification and live well within your means.

Those with a happiness mindset tend to prioritize enjoyment and may share the common Fear Of Missing Out – yes, it is an actual thing. People with this mindset often thrive on living life to the fullest, sometimes beyond their means.

There is no right or wrong mindset. Again, most people are a combination of the three. It is important to know where you fall.

This information allows us to consider a new client’s thought process before establishing a financial plan. We at PAX Financial Group believe in taking a holistic approach to a client’s finances, meaning we look at their goals, their priorities and their spending habits. And this new tool helps us do this better.

I talk money with politicians on Capitol Hill, with CEOs, with local news stations and with friends on a day-to-day basis. During one of my client meetings, I received a thoughtful question: “On a scale of 1 to 10, how important is money to you?” The answer is complex.    

If you look at history, money has always been important in some way. The Bible even contains 2,350 references to money. In fact, money is referenced more than the words “faith” and “prayer” combined. Is money important to me? Yes, and it’s important to you as well. Sometimes we just don’t admit it. And sometimes we don’t know why or in what way.

Financial planning is crucial to enjoying the retirement each of us dream of. Whether retirement means spending time with family and friends, traveling the world or simply taking care of responsibilities that you never seemed to have time for when you were working, proper planning can help you get there. Working with the right financial advisor is also key. We encourage everyone to do their research and find a financial advisor who will look at their complete situation, and not just investments.

If you’re looking for a financial advisor to work with, contact PAX Financial Group to get started.

 

Retirement Guide - PAX Financial

This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.

Darryl Lyons

Darryl Lyons

CEO and co-founder of the PAX Financial Group, Darryl Lyons has been a licensed professional in the financial services industry since 1999. A lifelong Texan, Darryl began his career in the financial sector just one day removed from earning his bachelor’s degree in corporate financial management and accounting at St. Mary’s University. Throughout his career, he has won awards for recruiting and development from Fortune 100 companies. In January 2007, he chose to begin and develop his independent practice. He joined Andres Gutierrez and Joseph Schuetze to form the PAX Financial Group. Darryl also served as the Chairman for Brooks Development Authority. Shortly after his service, Mayor Julian Castro, named a park “The Darryl W Lyons Park” in honor of his service. He was named to the 2010 San Antonio Business Journal’s “40 Under 40 Rising Stars,” which honors people making a difference in business and in the community.

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