Kelley Keehn joins Jackie to discuss losing wealth. Inspired by Annie Lennox’s song “Here Comes the Rain Again,” they delve into why individuals may face financial setbacks and the lessons that can be learned from such experiences. Kelly Keehn, a renowned financial expert and founder of MoneyWise Workplaces, shares insights on minimizing the dangers of losing wealth and making sound financial decisions in challenging times.
The Mindset of Losing Wealth
The mindset associated with losing wealth highlights the concept of the upper limit theory. This happens when individuals set subconscious limits on their level of happiness and financial success. They emphasize that one’s mindset about money is crucial in determining how one handles wealth. If someone is accustomed to a hand-to-mouth existence, they may find it difficult to break free from that financial ceiling, regardless of their financial situation.
Factors Contributing to Wealth Loss
Taking risks without understanding the potential consequences is one of the factors that can lead to losing wealth. Kelley cautions against underestimating the hard work and dedication required to accumulate wealth, highlighting the importance of patience and perseverance. Additionally, she raises concerns about social media’s influence, which can falsely perceive wealth creation as effortless. Building wealth takes time, discipline, and a deep understanding of financial principles.
There is also the emotional aspect of losing wealth: fear and anxiety can lead individuals to make impulsive financial decisions. They emphasize the importance of staying grounded and making rational choices rather than succumbing to emotions during times of financial stress. Kelly shares the story of lottery winners who lost substantial amounts of money due to emotional decisions and a lack of financial education.
Shifting Financial Mindset
A financial mindset shift is essential to avoid falling back into old patterns of financial struggle. Kelley shed some light on recognizing that wealth creation is not an overnight process and that setbacks are a part of the journey. By embracing a growth mindset and understanding the long-term perspective, individuals can bounce back from financial challenges and work towards regaining their wealth. Highlighting the significance of perceiving all money as one’s own, regardless of its source and the individuals’ tendency to treat certain money pots, such as inheritances or bonuses, differently and often recklessly.
The Power of Conversations
Kelley emphasized the central role emotions play in shaping our financial behaviours. From impulsive gambling to making gut decisions driven by market fluctuations, our feelings often overshadow rational thinking. She encourages individuals to engage in conversations that explore the complexities of financial decision-making and uncover strategies for overcoming emotional biases.
Seeking Professional Guidance
According to Keehn, seeking professional help is crucial in regaining control over our financial decision-making processes. By consulting financial planners and advisors, individuals can gain valuable insights, identify blind spots, and receive guidance tailored to their needs. Kelley stresses the importance of finding trustworthy professionals who can offer reliable advice and support during challenging times.
Striking a Balance: Risk vs. Reward
Finding the balance, Kelley encourages individuals to develop a strong connection with their future selves to counteract short-term thinking and impulsive behaviours. Kelley recommends conducting simulations and worst-case scenario analyses with financial advisors to understand the potential outcomes of different investment choices. By comprehending the risks and aligning them with personal financial goals, individuals can make more informed decisions and manage their expectations effectively.
Building a Relationship with Your Future Self
To counteract short-term thinking and impulsive behaviours, Kelley encourages individuals to develop a strong connection with their future selves. By envisioning the person they aspire to become and aligning their financial decisions with long-term goals, individuals can reinforce the importance of delayed gratification and make choices that support their future financial well-being.
Final advice for people looking to build wealth?
For those who have experienced financial setbacks or losses, Kelley highlights the significance of recognizing that these setbacks are not always within their control. It is crucial to seek professional help, take action, and avoid dwelling on past losses. By focusing on the future and adopting a forward-looking mindset, individuals can rebuild their financial confidence and regain control over their financial management.
Kelley Keehn can be reached at https://kelleykeehn.com/ for money-savvy tips for navigating your finances. Be sure to contact our team at email@example.com to start discussing managing your financial fortress and how our team of experts can give you a factual picture of your financial future.