3 Behavioral Modification Techniques To Gain Better Financial Habits With A Certified Financial Planner
Although the education system teaches plenty of different concepts and skills, it usually falls short when it comes to financial planning. 34% of Americans don't have any future financial plans and don't actually really know how they should plan financially for their future. If those statistics speak to you, it's time to dig yourself out of a financial rut by scheduling an appointment with a certified financial planner. A certified financial planner's most important role and responsibility is not to help you invest in stocks or mutual funds, but to help you gain better financial habits through behavioral modification. Here are 3 techniques that are commonly implemented.
Gain Awareness of Financial Standing and Concepts through Deciphering Money Scripts
While most Americans aren't aware of it, they already have some type of expectation or belief towards money built into their minds from their childhood or from the beliefs of people around them. If you've always struggled with managing money, a certified financial planner will want to spend a significant amount of time helping you gain awareness of your own financial standing and your own financial concepts by deciphering the money scripts that you already have. For example, if you subconsciously believe that money is the root of all evil, you might unknowingly be sabotaging your efforts to get ahead financially.
A certified financial planner will want to go through all of the experiences or encounters you've had in your past with money. They'll want to explore the beliefs of those around you to determine how accurate your financial beliefs are. Next, they'll reveal inaccuracies within your money script log by giving you some cold, hard facts. They'll help you identify triggers that lead to irresponsible financial decisions and help you understand how to better control yourself.
Feel More Confident By Drawing Several Long-Term and Short-Term Road Maps
Knowing where you want to be financially in the future is important for a certified financial planner to determine the route you need to take to get there. Making the right financial decisions on a whim can be difficult, so nothing should be left to chance. A certified financial planner will draw up several road maps for you regarding how you can achieve both your long-term and short-term financial goals. They'll also give you some insight as to the alternatives you can take, should you run into any hiccups along the way.
Written investment strategies can really give you a boost of confidence when it comes to dealing with your finances. The parameters of a financial plan ensures that you'll avoid making decisions solely based on your emotions. It also helps you stay on track without getting distracted.
Keep You Motivated and Going by Following Up on You Often
After they've taught you some important financial skills, a certified financial planner will want to follow up with you regularly to make sure that you are actually implementing the skills and techniques that they taught you. It's easy to get side-tracked when you're not held accountable for your own actions or for the decisions you've made. When signing up for behavioral modification services from a certified financial planner, you can expect your financial planner to keep tabs on your financial success. Not only will they see where you're at, but they'll also want to make sure you're making sound financial decisions as well.
By making sure that you're consistently making the right financial decisions, the certified financial planner is helping you build discipline when it comes to making financial decisions. Being disciplined financially can go a long way in the future.
A certified financial planner isn't just there to sell you stocks, bonds, and mutual funds. They are much more than that, as their main goal is to help you gain the skills and knowledge needed to achieve financial independence and freedom. Most certified financial planners focus a large amount of their time in helping clients modify their behaviors and beliefs towards money.