7 Subconscious Financial Drivers to Avoid
“I am in need of help to urgently re-engineer my finances!” was the WhatsApp message I got from a frustrated stranger, Everett, at 5:05 a.m. With a whopping $286,000 monthly, going towards eight (8) loan repayments, not including his mortgage, Everett was left experiencing sleepless nights trying to find an escape out of the cycle of debt. Like Everett, do you need to revamp, re-engineer, recharge or restructure your finances?
When I called, Everett he was already in solution mode, wanting to consolidate his loans for the third time. “Everett, you’ve jumped to a solution but it doesn’t match your true and unconscious problem, which is not your stifling debt.” I shared.
It was Everett’s sense of ‘duty’ that drove his unwise financial choices, resulting in stifling debt. It led him to assume complete financial responsibility for his: 1) parents’ care, 2) daughter’s law school fees and 3) wife’s bills, so she could quit her job. This quiz below will help you identify negative financial drivers so you may avoid them and achieve your true potential.
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SUBCONSCIOUS FINANCIAL DRIVERS |
When did this cause you to make an unwise financial decision? |
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2. It is my responsibility so I will fulfill my duty. Choosing to provide beyond what you can afford because you believe you should. This may involve not even asking for help. |
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3. Waiting is wiser, but it is too painful/embarrassing to feel like a miser. You jeopardize our long-term goals by insisting on having “it” now. |
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4. I could not have what I adored so I bought what I could afford. Even though this is not getting you closer to your goals, you buy it. E.g. You want a home, but do not have enough for the down payment, so you splurge on a car. |
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5. Let me fill this void that I just cannot avoid. You purchase things to fill a feeling of inadequacy or other emotional and physical voids you believe you have. |
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6. The decline in my standard of living, highlights all the things I am missing. You may have had a decrease in income but your pride and your desire to maintain your lifestyle makes it hard to reduce your expenditure. Although not limited to parents, parents are especially prone to giving their children the lifestyle to which they were accustomed. |
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7. Finally, I can afford what I had always adored, now the problem is I go overboard. You go wild on purchasing things you could not afford at one time in your life, even when they are unnecessary. |
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What is your financial goal? Which of these drivers is steering you away from your goal/s and diverting your money from your dreams? If you need a financial planning conversation to help steer your money in the right direction, please click to share your information and we will reach out to you.
Written by Michelle Sinclair-Doyley
Manager, Group Financial Partnership Support & Financial Education, JMMB Group