Rate Your Financial Wellbeing: Part One

Rick KahlerAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

At the beginning of a new year, many people resolve to do better at managing money. These resolutions often focus on past failures and ineffective financial behaviors to fix what isn’t working. Financial professionals like me often emphasize that same negative focus in our attempts to help clients work toward financial wellbeing.

What if this approach is backwards? Instead, it might be more effective to start by clarifying what financial wellbeing could look and feel like. This will be different for everyone, since financial wellbeing encompasses a range of traits that define one’s relationship with money.

One framework I use for defining financial wellbeing comes from my training in Internal Family Systems (IFS) therapy. It is based on the characteristics of a healthy internal system led by one’s authentic Self, and I tie those characteristics to financial beliefs and behaviors.

This week we’ll look at five Ps that define wellbeing, along with their negative counterparts. You might think of these pairs as opposite ends of a spectrum and consider where you see yourself along the range between them.