HUMANITY’S EMOTIONAL, ETHICAL AND FINANCIAL TURNING POINT

FINANCIAL WELLBEING

HUMANITY’S EMOTIONAL, ETHICAL AND FINANCIAL TURNING POINT

There is no denying that the last 14 months has been an experience of a lifetime for many!

We can dwell on it, or look for the opportunities to make this chapter a mental, emotional and ethical turning point for humanity. It’s our call.

In the future we can see that this planet, thirsty for change, took this opportunity by just stopping and paying attention to the countless messages that have existed for some time about life, its balance and humanity.

In a normal day, we say 16,000 words. How many more are thought, and how many are talked at us in noisy, noisy data?

Financial planning is often talked about in terms of numbers, reducing debt, maximising more wealth. Is that a disconnect, a disconnect that means we never reach contentment?

Understanding yourself and what matters is the first and foremost skill in financial planning.

Lockdowns have had a catastrophic impact on our nine emotional needs. Psychology shows that if just one of these nine needs are not being met, we can suffer significant distress and anxiety. Most importantly, when they are not being met, we turn to unhealthy solutions:

Alcohol, drugs, spending for that one extra pair of shoes are one of the many, most of which are followed by guilt and debt, which of course creates a negative downward feedback loop.

THE NINE EMOTIONAL NEEDS ARE:

1. Security

2. Attention

3. Sense autonomy and control

4. Emotional Intimacy

5. Feeling part of a wider community

6. Privacy

7. Sense of status within social groupings

8. Sense of competence and achievement

9. Meaning and purpose

Right now, if I was to ask you to score yourself out of ten to the degree of which they are being met, it probably wouldn’t be pretty, so it’s normal to feel bewildered. Society is right now.

Taking a positive stance to these needs is key. Being effective involves leaning into feelings rather than, ‘chin up, stiff upper lip, be positive’.

If we chill in our ‘being-effective hammock’, we learn what’s important to us and how financial planning can assist us. These emotions guide you to which values really matter, and allow you to approach solutions in a valuesdriven and productive, purposeful way - a way that is meaningful to you and allows you to be mindful in the process.

For example, does buying a new debtdriven car alter the emotional need of a ‘sense of status in social groupings’?

If we approach financial planning in a way that means we are taking care of our emotional needs, we can be targeted and meaningful to ourselves. This gives our goals a meaning to our subconscious and as such, ensures success because they matter.

Moreover, if we are in control of those nine emotional needs, the wheels are less likely to fall off in the first place.

PETER MCGAHAN

Chief Executive of Worldwide Financial Planning