Greed and fear are two states of mind sometimes associated with money making, investment decisions, and wealth building strategies.
This Thanksgiving, try being grateful instead.
There is a link between gratitude and larger account balances, larger investment portfolios, and greater satisfaction with spending decisions, according to financial advisors who have witnessed the decline. mix of money and emotions.
“By practicing gratitude,” says James Vermillion of Vermillion Private Wealth in Lexington, Ky., we can overcome our desire to spend on assets that don’t increase our happiness and focus on areas areas like spending quality time with family and friends.
“Gratitude can also help us delay gratification and avoid the urge for immediate rewards in return for more rewarding rewards later.”
Certainly, many people may find feeling financially grateful a challenge as so many aspects of Americans’ financial lives are stretched out today.
Consumer sentiment is affected a decade low in November, according to a closely watched gauge of consumer mood released Wednesday. People have been affected by high inflation that is gnawing and gnawing at their budgets.
Income rose 0.5% in October but the cost of goods and services increased 0.6% in the same month, according to Fourth data from the Department of Commerce. That follows other government data showing inflation hitting 31-year high in October.
And even as the economy recovers from the shocks of COVID-19, the numbers show many people are still unemployed, struggling and even starving.
Last month, 9.4% of people told Census Bureau researchers that they sometimes there is not enough food. That’s up slightly from the 8.8 percent national average a month earlier – and for the more staunch, those numbers can be another reminder to be grateful.
Gratitude leads to abundance, not scarcity
A glass half empty or half full? The answer may indicate a person’s mental default to scarcity or excess.
Scarcity, actual or perceived, can cause a person to be highly focused – and anxious – on shortcoming, studies show. Other studies show that mental health can play an important role in shopping habits; a household with someone suffering from depression has”outstanding differenceIn its spending characteristics, researchers recently said.
“The focus on gratitude for what we have, combined with optimism and positivity about the future, takes us out of our ruts,” says Melissa Walsh of Clarity Financial Design in Winter Park, Fla. of scarcity and becoming of abundance.
If someone begins with gratitude for what they already have, that mindset “could reduce impulse-based financial decisions, such as making expensive impulse purchases, because Gratitude can take us out of the immediate moment and help us focus on making long-term, value-based decisions.”
It’s a point everyone should remember especially if they’re planning Black Friday shopping, Walsh added.
Know when enough is enough
A concept in economics called diminishing marginal utility basically says that the less people experience pleasure or satisfaction from something the more they get it. Gratitude can be a safeguard that prevents people from wasting time looking for more, more, and even more.
Some of financial planner Elliott Appel’s most content clients, he said, are also grateful. “I don’t think practicing gratitude will make you richer, but I do think it helps you realize when you have ‘enough’ in life to avoid chasing after more and less money,” says Appel. affect your life,” says Appel, founder of Kind Financial Planning in Madison, Wis.
Beware of the Face of Gratitude
According to Corey Voorman of Voorman Investment Counsel in Plymouth, Mich., greed is the exact opposite of gratitude.
“Greed is often accompanied by an irrational desire for control and is often accompanied by anxiety that can harm returns or investor expectations in any market environment,” Voorman said. “Gratitude is one of the best weapons against greed and fear in investing.”
Many advisors note that there is also a practical side effect of gratitude: eliminating taxes.
They say that customers who are filled with gratitude in their lives also tend to give the most to charity. Those who split their deductions can include their charitable contributions, and those taking the standard deduction can donate up to $300 (or $600 for a married couple). husband) and reduce their tax liability according to the applicable tax rules.
Money becomes the means to achieve higher goals
Advisors say gratitude helps to map out what happens next after a person has accumulated enough for himself. In other words, if the pursuit of more wealth is not the end goal, it frees one’s mind to consider what is.
“Financial independence isn’t just about having enough money to meet your needs – it’s also about aligning your values with your financial plan: the peace of mind to focus on the things that matter. most, the peace of mind knowing you can live a life of your own choosing, and the peace of making plans to care for the people you love,” said Nicole Gopoian Wirick, founder of Wealth Strategy prosperity in Birmingham, Mich., said.
When Leland Gross, founder of PeaceLink Financial Planning in Virginia Beach, Vir., works with clients who see money through the lens of scarcity, he encourages a 5-minute exercise for them to write down the things they are grateful for. , whether it’s relationships. , financial or other.
It pulls the focus from “what I need” to “what I have,” explains Gross.
That can be a drastic change when so many people are trying to maintain an appearance, he said. “We live in a society full of anxiety, constantly comparing ourselves to each other, everyone feels insecure and everyone feels we are behind,” says Gross. “When more money becomes our goal in life, we will never have enough.”
Focusing on abundance can change that – like it did for one of Gross’s clients. The woman who saved for retirement, inherited $2 million from her parents. But she “felt numb” about whether or not to use it, for fear of wasting it, Gross explained.
They break down the amounts to show what can be spent and what can be protected with conservative investments. Within weeks, she had made an offer of a “reasonable dream home” that would close in the coming weeks, Gross said.
He recalled her reaction when they showed she had enough money to live on and use some of it. “She was in tears saying ‘I just feel better. I just enjoy it. I feel very grateful. ‘”
https://www.marketwatch.com/story/this-thanksgiving-and-beyond-here-are-3-ways-practicing-gratitude-helps-your-financial-well-being-11637791690?rss=1&siteid=rss This Thanksgiving and beyond, here are 3 gratitude practices that will make your finances better