Dr. Brad Klontz: The Truth About Savings

“The ultimate goal of financial psychology is to help us improve our financial wealth by improving our psychology.” - Dr. Brad Klontz Many of us want to save our money. We want to have a rainy day fund. We want to be able to buy that dream house. We want to have a vacation fund. So why is it so rare for us? Like many things, the problem is caused by our upbringings. We gain our beliefs about finances and money from the environment we were raised in. In fact, we can predict someone’s financial outcome based on their parents financial situation. That doesn’t mean you are stuck, though. There are ways you can retrain your psychology to achieve your financial goals. The first thing you need to do is stop trying to appeal to your logical side. Our decisions are always based on our emotions. If you want to save, you need to find ways to appeal to your emotional side. You may want to build a vision board, with pictures of all of your dreams. Every time you see it, you’ll be emotionally motivated. But that’s not where it ends. Once you’re motivated you need to take action. You need a plan and a strategy to follow the motivation. On this episode of Redefining Wealth we are joined by a very special guest on a very special day. Today, October 12th, is Capital One’s National Savings Days. Dr. Brad Klontz is here to discuss financial psychology, and how you can hack your brain to start building the wealth you want. Download this episode today to learn what you need to do to reprogram your mindset and start increasing that savings account so you can finally achieve your dreams. “Our default is to not save at all.” - Dr. Brad Klontz The Cliff Notes: We constantly make decisions contradictory to our knowledge. Financial psychology is the study of why we spend too much or don’t save enough. To improve our financial health, you need to improve your psychology. Most people have to learn about wealth as we go. The belief of money that comes from our parents can predict our financial outcome. We don’t get what we want, we get what we believe. You can find mentors that are already in your life. Most people aren’t motivated to save for a rainy day. In relationships, it’s helpful to have a sharing goal. Trying to save can be a lot like trying to diet. Your emotional part of your brain is what motivates you. Visual motivators are helpful, but you have to take action. Be specific in naming your accounts. Start saving AND paying off your debt simultaneously. “The truth about wealth is that it's evolving.” - Dr. Brad Klontz Show Notes: PatriceWashington.com/Listen