December 17, 2024
Many people find talking about money uncomfortable – leading to anything from anxiety about necessary conversations, to complete avoidance. This hesitation often stems from deeply ingrained mindset blocks that influence how we think and communicate about our finances. If you want to develop a healthier relationship with money, have more open and constructive conversations, and feel comfortable about identifying, clarifying (and ultimately achieving) your financial goals, it’s helpful to understand a bit about where these mindset blocks come from.
As we head into 2025 and towards the end of the 2024/25 financial year, now is the time to be reviewing your financial plans. UK Financial Planning Week takes place from 27th January to 2nd February, so this might be the perfect time to develop strategies for overcoming your personal barriers to talking about money.
Here are some of the most common barriers that Talis IFAs have encountered, along with some key ways that talking to an IFA can help:
Stigma
Money is often considered a taboo topic, with open discussion discouraged among family, friends and colleagues. This stigma can lead to embarrassment, especially if your financial situation doesn’t align with perceived expectations (and that can work both ways – whether you are worried about having too little, or awkward about having too much). It’s important to recognise that talking about money is not inherently negative, and that open discussions can lead to better financial literacy and more informed decisions.
What to try: Integrate money topics into regular discussions. Get into the habit by starting with small, non-controversial topics such as budgeting or savings goals.
Fear of judgment
We often hear from new clients that the fear of being judged for their previous financial choices or current situation has put them off seeking advice from an IFA. Many people fear being seen as irresponsible, not earning or saving enough, or spending too much.
What to try: Remember that an IFA is not here to judge you, or to criticise you for your financial past. There might be some valuable lessons to learn but we’re more interested in where you want to be in the future, and how we can help you to make a financial plan to get there. Some people also worry about appearing too money-oriented. Similarly, an IFA makes no judgment. We’ll help you to clarify and define your goals. Our ‘life first, money second’ approach also tends to help people feel more comfortable, by focusing first on what you want your life to look like in the future, and second on how your finances need to look to support that.
Lack of Financial Confidence
It might surprise you to know that you are just one of many people who avoid talking about money because they feel they lack the necessary knowledge or skills. It doesn’t matter whether this lack of confidence stems from feeling that your financial education is limited, or from past financial mistakes. Lack of confidence can prevent you from making important decisions that will benefit your future.
What to try: Talis IFAs take the ‘advice’ part of their job seriously. We understand that many people lack confidence and an important part of our role is to sit with you and look together into the financial world. By explaining everything in plain English, we gradually help you to build your knowledge and confidence, and become more comfortable with making the financial planning decisions that will set you on the path to a more secure, and informed, financial future.
Money worries
A scarcity mindset is also quite common – the belief that there is never enough money. This leads to constant worry and stress about finances, and a sense that financial planning is futile, or that you can’t save enough for your future to make it worthwhile.
What to try: We’re advocates of the ‘get rich slow’ approach. By saving little but often (by which we mean every month!) you can take advantage of the power of compounding returns to see real growth over a period of time, even with a relatively small monthly contribution. A Talis IFA will also help you understand what’s causing your money worries, and help you plan to improve your financial position. Making a plan to pay off interest-heavy debts (like credit cards), before investing, for example, or understanding the true value of any assets, can make a big difference.
Emotional attachment
Money is often tied to strong emotions such as fear, guilt, and pride. These emotional attachments can complicate money conversations, making them more about feelings than facts.
What to try: Try separating your emotions from financial discussions by approaching money matters from a purely logical and factual perspective. Thinking about your lifestyle goals rather than the numbers can also help. When negative emotions around money do come to the surface, acknowledge them and try to understand their root causes without letting them dominate the conversation. (That said, Talis IFAs are completely used to talking their clients through difficult moments, and you’ll almost certainly find a box of tissues sitting on their desk, just in case. We’ll just put the kettle on while you regain your composure.)
Cultural and family influences
No matter what our cultural and family backgrounds are, they’ve probably played a big role in shaping our attitudes towards money. In some cultures, discussing finances is considered inappropriate or even rude, while in others, it is openly encouraged. Family dynamics, upbringing and our employment history can also influence how comfortable we are talking about money. This can make it difficult to have important conversations around the financial future. And what happens when two great taboos – death and money – collide? We avoid having important conversations about what will happen to our wealth after we die.
What to try: Reflect on how your background has shaped your mindset around money. Open discussions with family members about money can also help break down long-standing barriers and promote better financial understanding and cooperation. If that feels like a step too far, remember that your Talis IFA provides a safe space for these conversations, and may be able to help you find ways to broach the subject.
Finally, when approaching the idea of changing your money mindset and becoming confident about financial planning, it’s helpful to embrace the concept of progress over perfection. Understand that financial planning is a learning process, and a repeat process over an extended period (it’s a marathon not a sprint). You don’t have to achieve everything in one go. You just need to take one small step, and then another, and keep going.
Find a Talis IFA to help you remove your financial mindset blocks and develop a positive approach to financial planning
Discussing your financial plans with a Talis IFA will help you to clarify your aspirations for your future, and to be clear about what that means for your finances.
Our advice will help you to avoid unnecessary waste, from tax burdens which could be reduced by careful planning, to overly risky investments.
If you’d like to talk about your financial plans, get in touch.
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