The Conventional Wisdom About Money Is WRONG!

(And Likely Destroying Your Financial Wellness)

Because ...

"Success With Money Is About Knowing and Managing Your Money Temperament - NOT Your Money."

Ted McLyman, MS, MPA, Author

Co-founder and Vice President, DreamSmart Behavioral Solutins

 

Why Is Money Hard?

Your 200,000+ year-old brain biology developed to keep you alive and pass on ​your genes. It’s lazy by default, and managing money is not a priority.

Question?

Have you ever run out of money before you run out of days in a month? Do you like doing taxes and reading the small print on your credit card disclosure? Do you buy a “gift” for yourself when shopping for a gift for someone else? Can you explain why your closet is overflowing? Or why do you always buy the same brand of food? Money is hard for most people. And you need to know why.

Your Money Temperament Superpowers

Your Money Temperament SuperPowers are how you feel and think about money. Money success is all about knowing and managing your Money Temperament.

You are unique; therefore, your Money Temperament is unique. There is no correct Money Temperament. You must know what it is and how it influences your money decisions. You must understand and explore what makes you “you” about money. What are your values? What is important to you about money? And how do you make money choices?

Money Is Complicated

Understand that you have a complicated relationship with money. Your natural Money Temperament is a product of your biology, money beliefs, and culture. You must know:

  • Money decisions are always emotional.
  • Everyone has a unique Money Temperament.
  • Your money strategies should match your Money Temperament.
  • The traditional financial industry is all about products and services.
  • The new financial industry is about behavior–temperament, and strategy.
  • Know your Money Temperament and manage behavior to create wealth.

The Traditional Wisdom About Money, Wealth, and Success is Wrong

Most of what you know and believe about money is classical economic thinking, which does you a disservice. Dr. Morris Altman, Ph.D., (2012) observed:

  • Humans are not rational when they choose and spend.
  • Humans are not talented and efficient at gaining and processing information.
  • Humans do not always make smart decisions without regret.
  • Humans are not good at determining the future consequences of their decisions.
  • Humans do not always have enough information to make sound decisions.
  • Humans do not always try to gain maximum wealth and income.
  • Humans do care about how well others are doing.

Money Is Hard

Blame Your Brain. Your brain is incredibly complex, not fully understood, and:

  • Inherently lazy.
  • Hardwired with short-term, dopamine-driven “instant gratification.
  • Defaults to “easy,” even if the alternative has more long-term benefits.
  • Often needs someone or something to nudge you toward the “correct” behavior.
  • Needs expectations and accountability to succeed.
  • Requires time to make a new behavior a habit and the new normal.

What should be surprising is that you sometimes get money right, and not that you get money wrong. 

What You Need to Know

You have a feeling-thinking brain preoccupied with keeping you alive and feeling good and not making sound spending choices. Research shows that 95-99% of your spending is unconscious, automatic, and emotional. Don’t believe me? Check your closet.

Understand that you are an emotional animal who thinks. You are NOT a thinking animal with emotions. This is important because your emotions define you as a human. But also excites you about a tax refund so you can spend the money on a trip instead of funding your retirement plan.

Thinking Is Hard Work

The brain of an average adult consumes about 20 percent of the body’s energy at rest. The brain’s primary function is processing and transmitting information through electrical signals throughout the body, requiring tremendous energy. Your brain avoids thinking brain activities to conserve energy. Making a shopping list and following it is thinking brain stuff. However, your “take charge” feeling brain prefers to grab a shopping cart, wander around a store, and shop impulsively.

Your Feeling Brain is in Control

Your feeling-thinking brain on keeping you alive and feeling good and not making sound spending choices. Research shows that 95-99% of your spending is unconscious, automatic, and emotional. Don’t believe me? Check your closet.

Understand that you are an emotional animal who thinks. You are NOT a thinking animal with emotions. This is important because your emotions define you as a human. But also excites you about a tax refund so you can spend the money on “must have now stuff” instead of funding your retirement plan.

You Are Hardwired for Instant Gratification

The brain uses approximately 20 percent of the body’s energy while at rest. Its main role is to process and transmit information via electrical signals throughout the body, which requires a significant amount of energy. To conserve energy, the brain tends to avoid engaging in activities that require intensive thinking. For example, creating and sticking to a shopping list involves thinking activities that the brain prefers to avoid. Instead, the impulsive feeling brain takes over, leading to spontaneous spending.

You Can Change Your Money Behaivor

Yes, You Can!

Changing your spending and overall money behavior is possible, but it’s hard work. Your biology, money beliefs, and culture present a formidable obstacle to change. Plus, most money strategies are generic “one-size-fits-all” approaches that do not consider how you naturally feel and think about money. Or, as we call it, your unique Money Temperament.

As a result, you may need a strategy different from the one that works for someone else. Your challenge is first to discover your Money Temperament. Then, take small steps to develop or learn a strategy that fits your natural behavior. A better approach than attempting to force yourself to adapt to a strategy that is not appropriate to how you feel and think about money. If your plan does not fit your “wiring,” you will most likely fail.

Here's How

→ Create your personal Money Temperament Financial Behavior Report. 

→ Take a hard-thinking brain look at your spending behavior and financial situation.

→ Develop a spending and financial plan that complements your Money Temperament.

→ Set realistic short and long-term spending and financial goals.

→ Implement an accountability program appropriate to your Money Temperament – maybe hire a coach or money pro who “gets it.”

Your Roadmap to Better Money Behavior Begins Here!

Discover Your Money Behavior SuperPowers

– Your Money SuperPower Identity

– Preferred Communication Style

– Strongest Behavioral Biases

– Market Mood

– Your Money Strengths and Struggles

– Key Financial Behavior Insights

Sample Report

The Money Behavior SystemYour "One-Size-Fits-YOU" System For Better Money Choices, Wealth, and Behavioral Financial Wellness

Five Easy Steps to Financial Security and Peace of Mind

Step 1: Money Values.

Answer the question, “What’s important about money to you?” Make a list of the things you value most in life that cost money. These are your money values.

Step 2: Money Temperament. Complete your Money Temperament  SuperPowers Profile to discover, uncover, and unleash your natural Money Temperament.

Step 3: Money Knowledge.  Money knowledge is more than just technical understanding; it also encompasses your preferred method of receiving and processing financial information. It is your learning style for money. During critical financial transactions, it is essential to “understand the paperwork.” Demand that all the information and data is presented according according to YOUR Money Knowledge style.

Step 4: Money Strategy. Having a money strategy or road map to accomplish your Money Values is important. A sound money strategy considers both your Money Temperament and Money Knowledge.

Step 5: Money Plan. Here, you unleash your Money SuperPowers to take the steps to accomplish your highest Money Values. The Money Behavior System is your One-Size-Fits-YOU, behavior-driven system to better money choices and peace of mind. It works because it focuses on behavior, not money.

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The Book ...

Checkout Discover Your Money Temperament, A Common Sense Guide to Financial Security by DreamSmart Behavioral Solutions Co-founder and Vice President, Ted McLyman, MS, MPA.

It is about money behavior, not money. It’s for anyone who spends. Especially if you have never read a book about money, but you should.

Read the introduction at www.tedmclyman.com.