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Episode Summary
There have been MILLIONS of clients served by financial advisors around the world over time.
Of all those clients, the number who actually cared about maximizing their net worth is zero.
The number who care about maximizing their life is all of them.
Take, Scott as an example.
He’s 62 and just retired.
He worked tirelessly for decades at a job he hated to hit his goal of retiring early at age 62.
But, what met him at the finish line wasn’t joy and relief.
It was disappointment and regret.
He described it like this, “I may have accomplished my ‘goal’ to retire early. But, the decades of working for this moment cost me my health, my close relationships, and most importantly, my youth.”
Money is never a goal. Money is a tool.
A tool that funds the life you want to live.
(Credit: Derek Hagen – Check out more great visuals like these on his website)
Once you’ve identified the life you want to live (values, aspirations, intentions) and aligned it with your money, you’ve defined your financial purpose.
And, your financial purpose becomes the lens through which you view all of your financial decisions.
It ensures that you’re using your money intentionally, in a way that’s congruent with the life you want to live.
As Roy Disney says, “When your values are clear, your decisions are easy.”
But, the challenge is knowing how to guide a prospect or client through the process of identifying the life they want and defining their financial purpose.
Fortunately, that’s exactly what Derek Hagen does with his clients.
And, he teaches advisors how to take clients through a process that defines their financial purpose by focusing on money as a tool rather than a goal.
Things You’ll Learn
- Where he recommends advisors and planners start when trying to learn the human side of advice
- The insights and exercises he learned from the Exquisite Listening trainings by Ted Klontz
- The three components of a meaningful life
- His four-step process to help clients get “unstuck”
- An example of how he would use his process to help a client reign in their spending
- A breakdown of the four exercises he uses with new clients (Money Egg, Money Atom, Life-In-Perspective and Values Cards)
- The importance of a “Statement of Financial Purpose” and how to help clients craft their own
- Why we should diversify meaning in life just like we diversify portfolios
- The “ABC Process” that helps clients overcome their money scripts and improve their behavior
About Derek Hagen, CFP®, FBS®, CFT-I™, CFA, CIPM
Derek Hagen is a financial behavior expert and founder of Money Health Solutions, a financial therapy and financial life planning firm that helps clients who feel stuck.
He has been featured in The Wall Street Journal, Business Insider, Yahoo! Finance, US News and World Report, and Nasdaq.
He writes about the psychology of money using personal stories and simple drawings on the Money Health newsletter and blog. He speaks to consumer and professional audiences about the psychology of money and intentional living.
Other Episodes You’ll Like On Money And Meaning
- Mapping Money To Meaning In Pursuit Of Funded Contentment with Brian Portnoy
- The Future Of Financial Planning Is Life Planning with George Kinder
- Infusing Life Into The Financial Planning Process with Tim Maurer
Resources
Money Health Solutions – Personal Values Cards Deck
Money Health Solutions – Financial Psychology Assessments
Motivational Interviewing – Personal Values Cards Sort
Financial Therapy: Theory, Research, and Practice by Brad Klontz, Sonya Britt, and Kristy Archuleta
Whenever you’re ready, there are 3 ways I can help you master the human side of advice:
- HSOA Masterclass: An 8-week group program on building trust & connection, aligning money and life, and delivering frictionless advice.
- The Ultimate Discovery Meeting: A proven framework to seamlessly convert prospects into life-long clients in one meeting.
- HSOA Community (COMING SOON!): An online space to meet, collaborate, discuss, brainstorm, learn and grow with other advisors passionate about the human side of advice
If you’re interested, let me know here.