Personality tests help individuals understand how their unique behavioral traits and tendencies relate to their saving, spending, and investing patterns. General personality factors, like those included in the so-called “Big Five” personality traits, impact money-related outcomes like income and net worth. So while we’re helping clients understand their unique traits with individual reports and insights, this same data can help firms predict what clients might do in the future. We can also predict which …
If you are a consumer of personal finance content like I am, you have by now undoubtedly heard one commentator or another derisively dismiss the idea of even mentioning the long-term cost of a daily Starbucks trip. They don’t want to hear about it—it’s a trope to be ignored. And this derision is coming from otherwise competent and professional personal finance sources. This phenomenon got me thinking: what’s going on here? Surely Commentator X …
One of the hallmarks of a millionaire-next-door client is that they use their resources wisely. The “frugality chapter” of The Millionaire Next Door highlighted how frugality was part of the millionaire journey of small business owners, c-level millionaires, and others. If you’re familiar with the books, many continued those practices even after they passed the $1 million mark. The Science of Frugality In general, the more frugal you are, the more likely you will …
A well-designed financial plan can help clients achieve more than just financial goals. We talked with Michael Palazzolo, founder of Fintentional®, about how his firm helps clients achieve life goals in the context of financial planning. Michael is a former software engineer who started his transition to financial planning in 2007 and became a Certified Financial Planner™ certificant in 2010. Michael and his wife Amy also hosted Your Money or Your Life study groups …
While visiting Santa Cruz last year in August at the FPA Far West Roundup, I stepped into a surf shop on the wharf and saw a magic 8-ball for sale (I’m still not exactly certain what magic 8-balls and surfing have to do with each other). I hadn’t seen one of these things in quite some time, and it reminded me that, much like many of the other toys and games our children play with, …