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Emotion Work; Part 2 February 17, 2009

Posted by shaferfinancial in Finance.
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In my last post I suggested that part of managing one’s emotions is to have a plan.  That certainly is a requirement.  But say you have a plan, what makes you stick to it?  Especially when your friends and neighbors are constantly telling you how bad things are, or if you get laid off a job, or if you run into problems with your investments, your having a hard time finding a renter for you rental property or your stocks has taken a dive?

Well (shameless plug here), a good plan, like what we do at the Shafer Wealth Academy, has inherent risk management loaded into the plan; like a sominex account or money market reserves set at a certain comfort level or highly liquid stock investments, all of which are there to help you through the hard times.  Now I know from personal experience that even with ample reserves there are going to be times you are tested.  But that is life, right.  No one gets out of here not being tested at some point in some way.

So, in every plan risk management should be inherent to the plan.  And if you came to the Shafer Wealth Academy you would have a wealth coach at your disposal which is the second part.  Master mind groups are as old as wealth creation.  But, not every one has the ability to put together a master mind group for every part of their life.  So having someone you can contact when you have questions or are being challenged emotionally is of critical importance.  So the second critical issue is having others that can help you through the challenging parts.  Oh, and the others should not be folks who are selling a particular financial products to you, like insurance or mutual fund or stock or financial planning sales people.  These  folks will almost always default to selling you whatever product they have to offer using your fear or confusion against you.

Finally, there is a third part of emotion work that really works for me.  That is the need to be self reliant even into retirement.  If you don’t have this drive, then you need to find it somewhere because to be reliant on the government or your children or friends during your retirement years is to be totally helpless at times.  You need to use that feeling of not wanting to be helpless or at least wanting to be self-reliant as long as possible to drive you.

If you have any doubt that is where you are headed download my e-book and read the facts about how over 90% of current folks are, and in the near future are going to be even more so, dependent upon the government.

So in review there are four areas of emotion work needed to be accomplished:

1.  Allow the thought that you could use some help seep into your system and act on that thought by working with someone that can build a real wealth building plan;

2. Make sure the person helping you with your plan builds into it comfortable risk management procedures.  Comfortable to you; and

3.  Have a mentor or wealth coach that you can communicate with when you have questions or get emotionally upset with what is going on with your finances or investments; and

4. Keep your eye on the prize, which should be financial independence throughout your retirement.

If you accomplish these four things, then you are well on your way to success by managing your emotions!

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