Say "Hello" to your FutureSELF
The FutureSELF Concept
The concept of one's future-Self is an aspect of planning out future opportunities or occurrences that might affect one's future.
People think about their future-selves similarly to how they think about other people – as a stranger!
Behavioural Economics suggests that the extent to which people feel connected to their future-self influences how well they make decisions today for their future-self. In fact, they are 75% more likely to make better decisions for their Future-Self and are 50% better savers.
Money, Health and Happiness impact of financial planning on emotional
Traditional measures of financial planning success have often focused on tangible aspects such as the achievement of financial goals and objectives, the ability to retire at a given point in time, relative investment performance and fee/cost savings to name a few. But is this the true value of advice?
The question of money and happiness has long been debated. Money in itself of course does not buy happiness, yet our financial decisions do indeed impact on our ability to live our desired life. It is here that we at Rarebreed Finance can positively affect not only the financial decisions and tangible outcomes for clients, but also the intangible aspects. Research by IOOF [White Paper, The true value of advice. 2015] uncovered significant emotional benefits experienced by clients who receive professional ongoing financial planning advice compared to those consumers who do not. These included having:
13 per cent greater levels of overall personal happiness
21 per cent more peace of mind with regards to their financial future
20 per cent increased feelings of security regarding their day to day finances.
Perhaps even more importantly, the research found that clients who receive professional ongoing financial planning advice experience additional positive social and personal benefits, compared to individuals who don’t. They found that ongoing financial care clients are:
19 per cent less likely to have arguments with loved ones about money
21 per cent less likely to have their personal relationships impacted due to concerns about money.
It was also discovered that consumers who don’t receive professional ongoing advice are 22 per cent more likely to have their sleep disrupted due to concerns about money.
Knowing what’s valuable to you has never been more important. Whilst most brokers and advisers are comfortable with explaining the value in their advice from a monetary perspective, evidence concludes that advisers can also deliver positive emotional benefits that reach beyond the provision of a successful financial plan.
The most compelling statistic to emerge from the research is that those who have more of a connectedness with their FuturerSELF and who receive ongoing money management advice are;
22 per cent more likely to feel as though they are living their ideal life.