Believing in Your Worth: The Key to Financial Abundance
Money alone doesn’t lead to happiness. But does happiness lead to money? I recently had the opportunity to talk to psychotherapist Joyce Marter, author of The Financial Mindset Fix, and her observations from years of clinical work were fascinating.
She noticed a trend as she helped clients work through various mental health issues such as depression, anxiety, post-traumatic stress disorder, and more. As her clients improved their mental state, they were selected for promotions at work, started businesses, and launched side hustles to make extra money.
Interestingly, money wasn’t the focus of her counseling sessions. So why was this happening? Joyce noted, “In therapy, no matter what issues we were working on, we are always simultaneously treating underlying feelings of self-worth, or the value we place on ourselves. As my clients’ sense of worth improved, so did their finances — because of increased confidence, empowerment, assertiveness, and self-care.”
For many of us, the real obstacle to living a more prosperous life, financial and otherwise, is ourselves. The more I talk to and read about successful people, the more I realize that many aspects of well-being are interconnected. Ken Shubin Stein said, “there are four things that improve brain health and brain function…meditation, exercise, sleep, and nutrition.” As I consider these four areas, it’s plain to see that each affects the others. For example, eating a nutritious diet helps energize the body, providing energy for rigorous activities, which in turn leads to better rest.
Shubin Stein may not have specifically mentioned self-worth, but anyone dedicating time to meditate, exercise, get adequate sleep and eat well probably values themselves highly.
Money Isn’t Magic
We often want money to be the ultimate quick fix. Phrases like “if I only made more money” or “if I made that much money, I’d be happy” are commonplace. Yet, when we look at those who have seemingly endless pockets, some of them are miserable too. A study on the link between wealth and happiness showed that emotional well-being increases until about $75,000, at which point progress stops. For those pulling themselves out of poverty, an increase in income could relieve stress and increase happiness. Having a stable place to live, access to meals and other basic human needs met is a huge relief. But for most people, greater satisfaction needs to be found elsewhere.
It seems that we’ve identified a meaningful relationship but reversed the cause and effect. More money doesn’t necessarily lead to greater happiness, but greater happiness can lead to financial prosperity.
What is Prosperity?
If you’re interested in growing your prosperity, you may first ask what prosperity means to you. At the end of every Bulls, Bears, and Bourbon podcast, I ask the guest a simple question, “what does wealth mean to you?” Guess what. The answer hasn’t once been about material possessions, a larger retirement account, or more investments. Instead, the responses reflect a desire for personal freedom, pursuing meaningful work, and fostering loving relationships with family and friends.
That doesn’t negate the role of financial health in our lives. My guests aren’t more virtuous than everyone else, but they recognize that money isn’t the end-all, be-all.
Be Directionally Right
If you are interested in improving your financial wellness, you might start with enhancing your mental health. Seeking the guidance of a counselor, implementing high-performance habits, and instituting self-care measures could provide the boost you need. And you don’t need to be perfect; no one is. Tom Gayner, the famed CEO of Markel, ascribes to the philosophy of being “directionally correct.” In other words, you don’t need to get everything right. Setting such expectations only creates more pressure and stress. Instead, you need to be on the right track and get the big things right.
I like Tom’s approach because it’s sustainable. Suddenly shifting from no self-care routine to a rigorous one with a strict diet, jam-packed schedule, and demanding exercise regimen, for example, will likely lead to burnout. The rapid starting and stopping will add another failure to the list, leading right back to old habits.
Being directionally correct, however, can lead to long-term habits with significant rewards. Instead of starting a stringent fad diet, you could eat fewer processed foods and cut your sugar intake. And rather than trying to exercise 5 days a week for 2 hours, you could start walking during business calls or start an active hobby like tennis.
If you don’t feel like you deserve prosperity, you probably won’t attain it, and if you do, it won’t last long. But if you believe that you are worthy and act as though you are, you may find yourself on the receiving end of a financial boost.
Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from James Vermillion, and all rights are reserved.
