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How We Define Financial Peace of Mind

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By Eric Chetwood, CFP®

The phrase “financial peace of mind” gets tossed around quite a bit. But what does it mean and why is it important? Here’s our take on this commonly used phrase.

How We Define Financial Peace Of Mind

At Adams Chetwood Wealth Management, we believe that financial peace of mind begins when you understand that money impacts you financially, emotionally, relationally, and even spiritually. Like a tabletop on four legs, financial peace of mind rests on a healthy balance of these four components.  

As a pre-retiree, you already know that financial peace of mind impacts you financially. But do you understand how it impacts you emotionally, relationally, and spiritually? I want to go over these three components with you now because they’re often overlooked when planning for a long and prosperous retirement. 

How Money Impacts You Emotionally

As humans, we’re hardwired to make emotional decisions with money. This is never more true than when it comes to investing. When the stock market is soaring at an all-time high like it was in 2019, we want to throw every penny we have into the market for fear of missing out. But as soon as the market starts to dip, as it did in early 2020, fear starts to kick in and we want to pull out all of our investments and run for cover. 

A great investor named Nick Murray once said, “Wealth has more to do with investor behavior than investment performance.” These are powerful words. Your ability to stick to a data-driven plan has more to do with your ultimate financial success than any stock pick or market timing. Recognizing this truth and your own behavioral biases will increase your chance of success when it comes to reaching your financial goals.

How Money Impacts You Relationally

Money has an amazing ability to tear families apart. I rarely see it bring families together, with one exception: the generous family. If there’s one thing I know for certain, it’s this: it actually is better to give than to receive. 

Making generous gifts that require personal sacrifice to both your family and community always leads to higher levels of happiness and greater financial peace of mind. There are countless studies that back up this claim. 

For example, sociologists at Notre Dame did research on the science of generosity. During this study, they found that people who are generous with their money and time are often happy, healthier, and more resilient than their less generous counterparts. (1) The sociologists coined this study as the “paradox of generosity” because it proves that you can actually gain more by giving something away. 

How Money Impacts You Spiritually

Finally, we’d be remiss if we didn’t talk about how money impacts you spiritually. As a financial advisor for over 15 years, I’ve seen time and again that money doesn’t satisfy. If it did, there would be a direct correlation between greater amounts of money and happiness. Yet, there are countless studies that show us that isn’t the case. More money does not equal more happiness.

When we treat money as an ultimate thing, it leaves us disappointed. But when we treat money as a tool and a means of blessing others, generosity breaks the power of greed over us. 

How We Help You Gain Financial Peace Of Mind

Obtaining true financial peace of mind starts with creating a financial road map that addresses how money impacts you financially, emotionally, relationally, and spiritually. 

At Adams Chetwood Wealth Management, we want you to stop thinking about retirement as a finish line and instead think about it as a starting point for your next great adventure. It is just as important to know what you are retiring toward as it is knowing what you are retiring from. At the end of your life, what will your legacy be?

If you’d like help planning for your dream retirement (and incorporating the four components of financial peace of mind into your plan), schedule a complimentary introductory meeting online or reach out to us at michelle.disney@adamschetwood.com or (919) 287-5660.

About Eric

Eric Chetwood is managing partner and CERTIFIED FINANCIAL PLANNER® (CFP®) at Adams Chetwood Wealth Management Group, a faith-based Registered Investment Advisory (RIA) firm located in Durham, North Carolina. Eric graduated from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill in 2003 with a bachelor’s degree in business administration and has been on the Adams Chetwood team for over 15 years. Eric spends his days helping clients with comprehensive financial planning and portfolio construction and helping them navigate the opportunities and challenges of each stage of life. Away from the office, Eric enjoys effecting change in the local community. He was chosen to participate in the 2007 Leadership Durham program and the 2009 Leadership Triangle program. Currently, Eric serves as a directional Elder at the Summit Church. He also serves on the board of directors for the NC Study Center at UNC-CH and previously served on the board of Samaritan Health Center, an organization that provides medical care to uninsured and low-income families in Durham. He and his wife, Allison, have two sons, and are passionate about adoption advocacy as well as leveraging their gifts and resources to alleviate physical and spiritual poverty through microfinance and social businesses. To learn more about Eric, connect with him on LinkedIn.

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(1) https://news.nd.edu/news/notre-dame-sociologists-explore-the-paradox-of-generosity/