Money cannot buy happiness, but the right financial plan can

November 21, 2016 by Ryan Allen

A women completing a transaction at her business, smiling because she reached her financial goals and found happiness

About the author:

Ryan Allen

After graduating from the University of Wisconsin-Whitewater, Ryan began his career with Advicent as a business development representative in the mid-market space. Ryan strives to help advisors overcome challenges and improve efficiencies to ultimately drive revenue. Ryan is passionate about developing his career in the financial industry.

I have been told money cannot buy happiness throughout my life; however, as I get older and realize how important money is, I have begun to question this idea. As I think more about this idea that money can buy happiness, I always go back to what makes me happy — family.

I grew up in a large family that has always been very close. No amount of money can bring me the happiness that they bring to my life, and I know many people feel the same way. Yet, so many people are always striving to make more money. They make regrettable sacrifices to get that raise or promotion, ultimately to realize when that money comes it is not enough and they are still striving for more. Why is that? At what dollar figure will we finally be happy?

The way to happiness is often financial control

The more I thought about these questions, I began to realize money must buy happiness if we are constantly striving for more. It is not about how much money though, and that is what so many people struggle to understand — it is about feeling in control of your finances.

According to a study from Aviva, two-thirds of the people in the UK have good or high self-esteem. Eighty-five percent of those people also feel in control of their finances and 70 percent of those with poor self-esteem do not feel in control of their finances. So it is not about the amount of money, rather the feeling of control over one’s finances that brings them happiness.

What can advisors do to help?

Being in control of your finances allows you to make lifestyle changes that bring you happiness. This is why it is so important for financial advisors to ask about their client’s happiness. If a client hates going to their job every day and only goes for the money, what can you do as an advisor to change that?

Maybe the client has a dream of opening a bar or sandwich shop. As an advisor you can carefully examine their motivation and financial resources. Then, it is about coming up with a plan to get them there. Advisors that can bring their clients happiness will build stronger relationships and ultimately improve retention rates and client referrals.

Click here to learn how Narrator® Clients from Advicent helps advisors keep clients engaged and on track for controlling their finances.