To help you navigate the emotional side of financial decision-making in personal wealth management, we asked financial coaches and founders for their best advice. From sticking to long-term goals to understanding asset allocation, here are the top six tips these experts shared to guide you.
- Stick to Long-Term Goals
- Consult a Financial Advisor
- Keep a Money-Feelings Journal
- Practice Mindfulness in Financial Decisions
- Focus on the Bigger Picture
- Understand Asset Allocation
Stick to Long-Term Goals
I manage the emotional roller-coaster of financial decisions by sticking to the plan and keeping my eyes on the prize—long-term goals. Maintain discipline, cutting through the noise of market ups and downs. I am passionate about wealth management, and it is a part of everything I do. For me, it isn’t an emotional experience; it is a calling or purpose that drives every decision I make in every part of my life.
Kelly Ann Winget
CEO / Fund Manager / Founder, Alternative Wealth Partners
Consult a Financial Advisor
When dealing with financial decision-making, I’ve found that consulting with a financial advisor can be extremely helpful. I once felt overwhelmed by conflicting investment options. Discussing these options with a financial advisor gave me clarity and reassurance, enabling me to make more balanced and informed decisions. The advisor’s objective insights and professional guidance helped to alleviate my emotional stress.
I advise others to seek professional advice whenever they feel emotionally uncertain or face complex financial choices. An advisor can offer a fresh perspective and assist you in navigating these decisions more effectively, ensuring they align with your long-term financial goals and overall strategy.
Sacha Ferrandi
Founder & Principal, Source Capital
Keep a Money-Feelings Journal
The emotional side of financial decision-making could be quite challenging, especially in personal wealth management. Personally, I find the practice of “emotional budgeting” very helpful. I set a specific time each month to review my financial situation when I am clear-headed and logical but also allow the emotions or stressors related to money to surface and be addressed.
One thing I do, and would suggest to everybody, is to have what I call a “money-feelings journal.” It is literally just a notebook or a document you can keep on your computer where you log all of your emotional responses to financial decisions. For example, how did you feel when you made a big purchase, or when the market was moving up or down?
This long-term exercise will let you notice patterns of feelings, and thus start to distinguish between feelings and facts in decision-making. It would also be enlightening to review those entries once in a while to understand how your emotional state drives your financial decisions and implement strategies accordingly. That way, one will be more self-aware but can also have balanced and more informed discretion in finance.
Greg Walters
Co-Founder, Chat PDF Pro
Practice Mindfulness in Financial Decisions
Handling the emotional aspect of financial decision-making is crucial for effective personal wealth management. Emotions often drive our spending and saving habits, sometimes leading us astray from our long-term goals. Personally, I make it a point to acknowledge my emotional triggers around money. Whether it’s the thrill of a spontaneous purchase or the anxiety of unexpected expenses, recognizing these feelings helps me take a step back and make more rational decisions.
One technique I use is mindfulness in my financial routine. Before making any significant financial decision, I pause and reflect on why I’m doing it. Am I acting out of fear, excitement, or peer pressure? Does my decision align with my priorities and values? This brief moment of introspection allows me to separate emotion from necessity, ensuring my choices align with my broader financial objectives. By integrating mindfulness, I stay grounded and avoid impulsive actions that could derail my financial plans.
Moreover, setting clear, realistic goals helps manage the emotional roller-coaster of personal finance. I break down larger financial ambitions into smaller, achievable milestones. This approach provides a sense of accomplishment along the way, reducing stress and boosting confidence. When you celebrate these small wins, it helps build a positive emotional connection to your financial journey, making it easier to stay on track.
Here’s a tip: schedule a weekly financial check-in. Spend just 15 minutes reviewing your numbers objectively. It could be Finance Friday, Money Monday, or Super Savings Saturday—pick a day that works for you. This habit not only keeps you informed about your financial status but also helps you track your progress over time. Regularly engaging with your finances reduces anxiety and fosters a sense of control, allowing you to make informed, emotion-free decisions.
Brenda Uekert
Financial Coach, Dr. Brenda, Money Coach
Focus on the Bigger Picture
Since 2017, beginning with the end in mind has allowed my husband and me to stay focused on our financial goals, especially when emotions creep into our hearts and minds. There have been countless times that we could have “overindulged,” “gone all in,” or spent our money with the mindset of “YOLO” (you only live once). We are able to rise above these emotions to resist impulse spending and overextending ourselves because we are in alignment on the “bigger picture” and know that nothing will compare to achieving our dreams.
This mindset shift was the incentive we needed to pay off all of our debt, including our mortgage. We are now in a financial position to build a vacation home that otherwise wouldn’t have been possible if we allowed our financial decisions to be driven by emotion. In a few short months, we will be at our new cabin, relaxing in our Adirondack chairs, reminiscing on the path we took to get here, and creating the next big goal. That will be an emotional day and one worth waiting for!
Christine Spiak
Financial Coach, Compass Financial Wellness
Understand Asset Allocation
To avoid taking knee-jerk reactions, I focus on proper asset allocation across bonds, stocks, countries, sectors, etc., for long-term investing. I also understand intrinsic valuation (the present value of a stream of cash flow) of any investment before making investment decisions. Importantly, invest after one has a chance to do due diligence work and not based on hearsay or herding behavior.
Marianne O
Co-Founder and Portfolio Manager, Lumen Global Investments
