This podcast explores the characteristics and impacts of financial dependency, including fear, anxiety, anger, and resentment. It emphasizes the importance of viewing individuals beyond diagnostic labels and understanding the effects on motivation and self-esteem. The speaker reflects on their own journey as a financial advisor and the significance of not claiming to have all the answers.
27:28
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Quick takeaways
Financial dependence can create fear, anxiety, anger, and resentment, stifling motivation and drive to succeed.
Financial professionals should empower clients and avoid assuming full control, while individuals should take responsibility for their financial decisions.
Deep dives
Financial dependence and its impact on motivation
Financial dependence, defined as reliance on others for non-work income, can create fear, anxiety, anger, and resentment. It stifles a person's motivation, passion, and drive to succeed. Financial dependence can be seen in various forms, such as parents enabling adult children financially or generational wealth impacting self-esteem and development. Additionally, becoming financially dependent on financial advisors can lead to over-reliance and anxiety. The need for being taken care of is different from pathological dependence, and healthy individuals should communicate their needs.
The concept of financial dependency
Financial dependency is not limited to parent-child relationships or financial support from others due to illnesses or disability. It includes relying on government assistance or receiving compensation for chronic pain or occupational impairment, which can prolong recovery. Financial dependency poses challenges in leaving an inheritance and may impact a person's self-esteem and motivation. Additionally, some financially dependent personalities may be drawn to narcissistic or histrionic financial advisors, seeking praise, control, and decision-making power. Financial professionals are encouraged to empower their clients and avoid assuming full control.
Balancing trust and responsibility in financial relationships
Finding trustworthy financial professionals is important, but individuals should also take responsibility for their financial decisions. Striking a balance between trust and personal accountability is crucial. President Ronald Reagan's quote, 'trust but verify,' highlights the need for partnership between financial professionals and clients. Giving all decision-making power to advisors can be risky, and individuals should be cautious of financial gurus who claim to have all the answers. Building a partnership and being in control of one's financial journey is essential for financial well-being.
Do you rely on others for the bulk of your monthly income? If so, it’s possible you’re your relationship with money may be suffering. Being financially dependent is a financial disorder defined as “reliance on others for non-work income that creates fear or anxiety of being cut off, feelings of anger or resentment related to the non-work income, and a stifling of one’s motivation, passion, and/or drive to succeed.” If this sounds like you or someone you love you will learn more in this podcast.
A podcast that blends the nuts and bolts of financial advice with the emotions that drive making them. Rick Kahler, CFP®, CFT-I™, has helped people make better money decisions by integrating financial planning. He blends the nuts and bolts of financial advice with the emotions that drive making them and shares them on his financial therapy podcast.
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