or decades, financial advice has been defined by numbers but behavioural science has shown that our clients’ relationship with money is more complex than just how much they have.
“Enough” is deeply subjective, shaped by several factors like personal values, mindset, money history and culture to name a few. As a result, we often find people with substantial income or wealth who still feel anxious or dissatisfied with their financial lives, while others with modest means live full and joyful lives.
This raises the question: what determines a client’s money happiness and how can financial advice help clients not only grow wealthier, but also feel more secure, fulfilled and content with their financial lives?
Wellbeing: the most valued state
Before we can answer these questions, we need to understand why wellbeing is one of the most valued and universally desired states among humans. Research shows that people who experience high levels of wellbeing are more resilient, more creative and make better life decisions. They also tend to enjoy better health, stronger relationships and higher productivity. In many cases, they even earn more and build greater wealth compared to those with lower levels of wellbeing.