Any discussion on the psychology of money starts with the etymology of the word. Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment. Money originated as commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money is without value as a physical ... Continue Reading

Our money, our minds, and our morality have been interwoven since the very first transaction of value was consummated. Interestingly enough, when it comes to a discussion of the history of commerce and finance, historians tend to strip out the psychology and morality, rarely straying far from the cold hard facts. More often than not, psychology is only considered when exploring aspects of marketing, trend analysis,  and product development —but usually to explain some sort of Jedi mind ... Continue Reading

To flourish in this complex industry and get beyond the cash-grab herd mentality, you need to understand the psychology of money. To do that, you first need to map the trajectory of how our relationship with money has historically evolved in our culture. It was the noted philosopher and essayist George Santayana who first said the now oft-misquoted phrase, “Those who cannot remember the past are condemned to repeat it,” sometimes called Santayana's Law of Repetitive ... Continue Reading

Financial professionals make money by making money with money. This distinction separates the FPs from virtually all other occupations. Even a sales professional, in another industry, who is fixated on driving revenue, is still selling a product or a service, to make money. In the financial services sector, the commodities are financial vehicles and products. By necessity, the financial services professional develops a more intimate relationship with a more complex concept of money than ... Continue Reading

Psychology is the universal underpinning and substance of all  human experience. Psychology is the study of behavior. Behavior consists of a variety of entities: feelings (emotions), thoughts, cognitive functions, perceptions, fantasies, yearnings, relationships, achievements, skill sets, actions and deeds. Money behavior is quite complicated. Money management, investing, spending, estate planning, trusts, budgeting, and even hoarding can all be part of the good life, what Aristotle referred to ... Continue Reading

Money is anything that is accepted as payment for goods and services, and repayment of debts. Money functions as a medium of exchange, a store of value, a unit of account, and a method of deferred payment. Originally, money was a commodity based in physical value. Today contemporary money systems are based on what is called fiat money: money without value as an actual physical commodity. Fiat money is money as we commonly know it because it has been declared so by governments to be legal tender ... Continue Reading

A stock is a share of ownership in a company that can be bought, sold, or traded as contrasted with a bond which is loan to a company that can be bought, sold or traded. Trading may have occurred as early as 9000 BC to 8000 BC when clay tokens were used for accounting and financial transactions. From 4000 BC to about 3000 BC bulla came into use. This technology involved a clay purse with tokens that could be sealed. The tokens were, in essence, financial records.  From approximately 2500 BC to ... Continue Reading

With this blog, the mission is to provide FPs with a variety of devices and methods designed to help achieve personal and professional wellness. For the financial professional, the two are intractably intertwined. However, the individual must first be willing to be truly honest and self-reflective before genuine progress can be made. You must look within yourself and beyond your ego, and fear, to assess the lack of balance in your life. As I have found in my practice, even the most successful ... Continue Reading

Modifying your behavior to blend in with the communal status quo is not enough. Deep down inside, we all know right from wrong. So when you deny your integrity, and when you don't stand up for what you really feel and think, there are always consequences. This is the major flaw in the self-help industry. You simply cannot be satisfied pursuing standards set by others if you are repressing your own instincts. On the surface, this sounds counter-intuitive, coming from a blog actually advocating ... Continue Reading

Albert Einstein once said, “We can’t solve problems by using the same kind of thinking when we created them.” My patients need to change their mindsets, and tear down repressive obstacles impeding growth. The person who honestly accepts accountability also enjoys the psychological salves provided by virtue, integrity, dignity, and honor. He is better able to develop a moral compass when he is no longer repressing his morality. In the deepest recesses of the mind, no one is above ... Continue Reading