Ep 391 How to Master Your Financial Psychology with Brad Klontz

How to Master Your Financial Psychology

 

Take away:

Developing an internal locus of control, where you take responsibility for your financial outcomes instead of blaming external factors, is a powerful mindset that can lead to significantly improved financial behaviors and outcomes.

 

Money Learnings:

Brad grew up in a lower-income family, with his parents divorcing when he was young. Both sets of grandparents lived in trailer parks, so he was very aware of the challenges and limitations of being poor. This drove Brad to want to figure out how to not experience the same financial struggles as his family. He developed an intense interest in understanding the psychology behind why "reasonably intelligent people do something so stupid" with their money. Brad credits this early curiosity and drive to understand money as the foundation for his later career path in financial psychology and his mission to help people improve their financial behaviors and mindsets.

 

Bio:

Bradley T. Klontz, Psy.D., CFP® is an expert in financial psychology, behavioral finance, and financial planning. He is a Managing Principal of YMW Advisors, an Associate Professor of Practice at Creighton University Heider College of Business, and a founder of the Financial Psychology Institute®.

 

Dr. Klontz has written eight books on the psychology of money and his work has been featured on ABC News' 20/20, Good Morning America, and in USA Today, The Wall Street Journal, New York Times and many more.

 

Highlights from this episode:

• The importance of understanding your family's relationship with money and how it shapes your own beliefs and behaviors around money.
• The concept of "money avoidance" - the belief that rich people are greedy and money is corrupting, which can lead to self-sabotaging financial behaviors.
• The danger of the "money focus" or "money worship" mindset, where material possessions are equated with happiness, leading to unhealthy outcomes.
• The power of automating savings and creating a clear vision for your financial future, rather than just focusing on the present moment.
• The importance of finding purpose and meaning beyond just accumulating wealth, and the potential pitfalls of having too much free time.
• The idea that "retirement is for dead people" and the value of continually working towards new goals, even after achieving financial freedom.
• The emphasis on developing an internal locus of control, where you take responsibility for your financial outcomes rather than blaming external factors.

 

Links:

Any social media @BradKlontz

 

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Some music provided by Junan from Junan Podcast

 

Any financial advice is for educational purposes only and you should consult with an expert for your specific needs.