The Carr Report: Money Psychology

Personal finance is more personal than it is math. In fact, personal finance is 80 percent personal and 20 percent finance. In other words, our decisions revolving around money are more influenced by our attitudes and behaviors towards money than it is the numbers. I recall doing a financial coaching/planning session with a client. She came prepared with all of her financial statements including bank statements, credit report, investment statements, and a list of all of her income and expenses. She handed the paperwork to me as I was logging into my computer. I placed them to the side without looking at them. I began asking her questions. After she answered my fourth question, she asked me if this was a financial planning session or a counseling session? We both laughed. When doing a comprehensive financial coaching session, my first five questions were as follows: What prompted you to reach out to me to schedule a financial coaching session? What are your financial goals? What are your financial concerns? Financially speaking, are you where you want to be? Without fail, the answer is no. The real question behind this question is: Financially speaking, in your own words, what do you...