Integrating your finances with happiness and well-being should be easy. But for many people, it’s anything but that.
And when it comes to retirement, the angst about tapping into savings is real for retirees who cling tightly to their money for fear they will outlive it.
In his new book, “Wealth in the Key of Life: Finding Your Financial Harmony,” Preston D. Cherry, a certified financial planner, takes a crack at showing smart ways to navigate the emotional and psychological aspects mixed up in financial planning.
Cherry offered insights and advice in a conversation with Yahoo Finance. Here are edited highlights of that conversation:
Kerry Hannon: Why does money create such an emotional mess for some people?
Preston Cherry: It’s because we exchange ourselves for money. We work for it. We’re exchanging a part of our being every day in order to earn income. Because you’re giving a part of yourself every day, that transaction gives money soul. It’s a soulful exchange. Your identity is in the money that’s in your bank account.
How do we get unstuck when it comes to dealing with our financial lives?
It’s about giving oneself permission. To start the unstuck process, you need to ask the questions: Where are you on your journey? Where are you with your career or your business? Where are you internally? Do you know what you don’t want to do anymore? What is it that you do want to do? Are you healthy?
Can you elaborate on the importance of reflecting on how we spend our money?
You need to be able to do this reflection without shame or judgment and push back on societal norms and stigmas. Heaven forbid you want to go buy a new car. My wife and I are looking at buying a Cadillac Escalade. The price of a 2025 Cadillac Escalade starts [at] around $90,000. That’s a choice and a preference. We have the capacity to do that. Our savings rate is being met. And there’s nothing wrong with that. We don’t owe our explanation to anyone. We give ourselves the permission to do that.
This is a book of permissions to live your life how you choose, providing that you have a financial plan. If someone makes you feel ashamed of spending your money a certain way, you need to say MYOB, which is mind your own business.
Read more: 5 psychological money hacks to cut spending and increase savings
How is money our partner?
Money is not just a tool. It’s your partner. You dance with a partner. A partner is fluid. Your relationship has flexibility. It adjusts. It has a soul. I call it the humanity of money. You give yourself permission to earn the resources that you need in order to allocate that money for your preferences and your purpose.
