Psychology of Financial Planning

CHAPTER 11Positive Psychology in Financial Planning

What brings you the most joy? Is it your work? Is it helping clients navigate their financial lives and achieve their goals? Or does your joy come from something completely unrelated to work? Perhaps you volunteer with a charity, mentor students or younger professionals, or serve as a leader at your place of worship? Or maybe it's all the above?

We all have things that fulfill us, challenge us, help us feel like we are part of something bigger than ourselves, and help us feel like we are making a difference. Like the title suggests, positive psychology focuses on the positive parts of a person's life, and has great strategies for helping clients recognize their strengths and use their assets, be they money, time, or knowledge, toward the activities and experiences that provide them happiness. Positive psychology applied to financial planning is an emerging area of interest in the field, and many aspects can be seamlessly integrated into financial planning to the client's benefit. In this chapter we introduce the field of positive psychology and how it can help enhance a client's financial life and overall well‐being.

AN INFUSION OF OPTIMISM

Theo sat down for his first discovery session with his new financial planner, Bobbie. After talking through his financial situation, goals, and how his family and partner were connected to those goals, Bobbie asked Theo to imagine his best possible future self in terms of his work, his ...