It should be easy to integrate your finances with happiness and well-being. But for many people it is anything but that.
And when it comes to retirement, the fear of tapping savings is real for retirees who cling tightly to their money for fear they will survive.
In his new book “Wealth in the Key of Life: Finding Your Financial Harmony,” Preston D. Cherry, a certified financial planner, attempts to show smart ways to navigate the emotional and psychological aspects mixed with financial planning .
Cherry offered insights and advice in a conversation with Yahoo Finance. Here are edited highlights of that conversation:
Kerry Hannon: Why does money create such an emotional mess for some people?
Preston Cherry: It is because we exchange ourselves for money. We work for it. We exchange part of our being every day to earn income. Because you give away part of yourself every day, that transaction gives money soul. It is a soulful exchange. Your identity is in the money in your bank account.
How do we get out of trouble when it comes to dealing with our financial lives?
It’s about giving yourself permission. To start the process of getting unstuck, ask the questions: Where are you on your journey? Where are you with your career or your business? Where are you internally? Do you know what you don’t want to do anymore? What do you want to do? Are you healthy?
Can you explain how important it is to think about the way we spend our money?
You must be able to do this reflection without shame or judgment and push back on societal norms and stigmas. Heaven forbid you want to buy a new car. My wife and I are considering buying a Cadillac Escalade. The price of a 2025 Cadillac Escalade starts [at] about $90,000. That is a choice and a preference. We have the capacity to do that. Our savings rate is being met. And there’s nothing wrong with that. We do not owe our explanations to anyone. We give ourselves permission to do that.
This is a book of permissions to live your life the way you want, provided you have a financial plan. If someone shames you for spending your money a certain way, you should say MYOB, which means mind your own business.
Read more: 5 psychological money hacks to reduce spending and increase savings
How is money our partner?
Money is not just a tool. It’s your partner. You dance with a partner. A partner is fluid. Your relationship has flexibility. It adapts. It has a soul. I call it the humanity of money. You give yourself permission to earn the resources you need to allocate that money to your preferences and your purpose.
How is your financial plan your life plan?
It is a life plan because your financial plan always comes down to balancing your life and money. It’s a seesaw. Both things are in motion. So it is balancing and living in a way that gives you wealth and well-being together. That’s how you prosper.
What are your retired clients’ biggest regrets when they retire?
One regret is: “I wish I had started saving sooner.”
The other is that they regret not having emotionally prepared and having a plan for the transition to retirement. These provide answers to questions such as: What am I going to do now? How am I going to do it? How am I going to get used to hobbies and get to know myself again?
They regret that it took them so long to give themselves permission to retire and then break away from an identity they may have been accustomed to – whether it was their corporate or corporate job.
Some of them regret ruining their finances by supporting adult children.
And finally, they regret being too tight with their money when they were sixty and retired for the first time, when they still had vitality. It’s that tricky problem of not starting sooner to give themselves permission to withdraw and use their money. They had trouble realizing that they had saved enough. and they had saved well.
Read more: How much money should I have saved by age 50?
Do you have a question about pension? Personal finance? Something career related? Click here to send Kerry Hannon a message.
Separating thoughts?
Give yourself grace to get where you want to go. You need to give yourself permission to live your full life now, not just in retirement. At 70, you may no longer be able to enjoy the things you would if you were younger and had that vitality.
Kerry Hannon is a senior columnist at Yahoo Finance. She is a career and retirement strategist and author of fourteen books, including ‘In control at 50+: how to succeed in the new world of work” and “Never too old to get rich.” Follow her further Blue sky.
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