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Easy Ways to Provide Better Results for Your Financial Advising Clients

How to Provide Better Results for Your Financial Advising Clients with Financial Psychology

While every client comes to you for financial guidance, some clients need more hand holding than others. We all know those clients who call every time there’s a dip in the market or who show up in your inbox every week. But what if there was a way you could identify these clients faster and give them the guidance they need, all while respecting your own boundaries and free time?

By understanding your clients’ financial personality types, you can give them the guidance they need without taking too much time out of your day. Knowing your client’s financial personality type offers a variety of benefits including:

  • Identifying their pain points faster
  • Understanding their financial motivations and approach to money
  • Determining where they fall on a scale for 13 personality types
  • Giving advice tailored to their strengths, weaknesses, and motivations

Each personality type will approach money differently, but financial advising clients won’t always tell you their money mindset, strengths, and weaknesses. The Moneymax quiz, however, allows you to discover someone’s personality type in less than 15 minutes. From there, you can give the right type of advice, especially to those who need more guidance. 

Moneymax has nine personality types and of those nine, some need more guidance than others. By knowing what type you are dealing with, you can give the right guidance to each of your clients.


Moneymax entrepreneurs tend to think outside the box, consider career achievements a priority and will take risks to achieve their goals. While some follow the typical image of an entrepreneur and run a large company with many employees or own a small business, others are “intraprenuers”, salaried workers who carve out an entrepreneurial niche within corporations or businesses. Others work a full time job and have a side hustle outside the office. 

Entrepreneurs won’t need as much guidance as other types. However, because entrepreneurs and business owners have different financial concerns than regular employees, these clients might need extra guidance on how to manage their finances as a business owner. 


As one of the most educated and ambitious Moneymax personality types, hunters should be set up for financial and professional success. However, this type does have the tendency to doubt themselves and emotionally spend. Hunters have the ability to play the money game, but they need to learn how and develop the confidence to play on their own.

Hunters could need more guidance because of their lack of confidence. This type might ask more questions and might not be able to stick to a savings plan because they are emotional spenders. To give hunters additional guidance, consider setting up a stricter savings plan that plays into their ambitious spirit (such as a tracker or smaller goals to hit along the way to a bigger savings goal). You might also help build up their confidence by telling them when they did something right with their finances and encouraging them to take a more active role in managing their money. 


The Moneymax Optimist tends to have a positive money mindset. They are proud of the way they handle their finances and have high expectations for future financial success. The optimist can sometimes overspend on things that bring short term pleasure. Despite their spending habits, they are overall confident and proficient in managing their wealth. 

This type probably won’t need as much guidance as other types. But similar to the hunters, they may need some guidance on how to spend their money. If you scaffold their financial plan right and allot some wiggle room for their spending tendencies, this type should be easy to manage and need little guidance. 


Moneymax Perfectionists tend to be overly critical and are afraid to make mistakes when it comes to money management. They often avoid decisions and put off work until they are sure they can do it just right. This type also tends to be frustrated with their financial situation as it’s never perfect.

As a procrastinator, the perfectionist might need more hand holding than other types. While they’re not as likely as the hunter or safety player to ask for your advice, you could find yourself following up with them a few times before they take action. When dealing with perfectionists, make sure to have a plan in place to curb their procrastination and take any needed actions as soon as possible. 

High Rollers

Of the nine Moneymax personality types, the high roller is the biggest risk taker. They desire power, influence, and wealth and aren’t afraid to take big risks. They enjoy the thrill of risky money decisions and in spending their money instead of saving it. While their risks can have high reward, their emotional decision-making can sometimes get in the way of their financial success.

As the biggest risk taker, the high roller can be a tricky type to manage. They can be great if you’re looking for clients willing to make riskier financial decisions with a potentially bigger payoff, but these clients aren’t as fun to deal with when those decisions don’t pay off. If any of your clients are high rollers, keep in mind that you may need to make extra time for when their risk taking gets in the way of their financial success.

Money Masters

Moneymax Money Masters tend to be just that–masters of their money and lives. While they are third in income, they are first in assets and are strategic in setting up a good financial future. This group is highly involved in their money management and proud of their achievements.

Money Masters usually don’t need a lot of guidance. When they are first starting to build their assets, they could ask more questions than other types, but overall they tend to be more involved in their money management and will need less hand-holding along the way.


The achievers are frugal with their money, believe in the value of hard work, and are interested in protecting what they earn. They tend to mistrust others and want to play an active role in their money management. Achievers are tied with Hunters for being the most educated personality type and are also goal oriented. Unlike hunters, they tend to make more analytical decisions. 

Due to their mistrust of others, you either won’t see as many achievers in your practice or these types will ask more questions and be more skeptical than other types. When working with an achiever, expect more questions than usual about your financial practices. 


The Moneymax Producers are one of the hardest working types and tend to be altruistic. However, their assets and income do not reflect their hard work and they’re often frustrated with their financial reality. By changing their negative view of money, they could change their financial future. 

The producers usually need a lot of guidance due to their negative view of money and their financial frustrations. This type could email or call you frequently for extra help with their finances. However, if you guide the producer to start building up assets which compliment their hard work, you might be able to better manage this type. 

Safety Players

Safety players tend to see financial success as a matter of luck or being at the right place, at the right time. They are less likely than other Moneymax types to believe their individual actions control their financial future. Because of this, they tend to make safe financial decisions with minimal risks. Safety players are also more passive in their money management than other types.

Because of their perceived lack of control over their finances, safety players may need more guidance than other personality types. This type will be more passive with their money management and expect you to do the bulk of the work managing their finances. To help guide safety players, remind them of how much they can control their future and work with them to create a safe, less risky financial plan. 

While some types may take more time and attention than others, you can better manage all nine personality types when you understand the strengths, weaknesses, and motivations of each. When you walk into a meeting with a client not knowing their personality type, you are often guessing about their approach to money. When you enter the meeting armed with their money personality type, you can more effectively attend to their questions and needs, saving you time and providing customized financial advising to your clients. 

How advisors use financial psychology

7 Advisors Explain How They Use Financial Psychology

Financial psychology is a term which can be confusing and off-putting to many advisors. After all, you didn’t get into this industry in order to become a therapist! Yet, mastering financial psychology can also be one of the best ways to advance your advising practice. 

But what exactly is financial psychology? We asked seven financial advisors for their definition and how they use it in their own practice. Here’s what they had to say: 

Financial psychology boils down to mindset.

“Financial psychology is your money mindset. This should develop before any action is taken to make sure you form healthy habits and behaviors that are reflective of that money mindset. Ensuring advisers understand clients financial psychology is critical for building trust, instilling predictive money habits and working together in a long lasting relationship. Clients should always inquire about their adviser’s money mindset, belief system around financial planning, and overall philosophy to ensure they are aligned.”

Craig S. Johlfs, CFP®, MBA, Johlfs Financial Group 

It makes your job easier.

“Financial psychology represents the crux of being able to understand the mind regarding money spending, saving, and investing decisions. People who specialize in this theory apply their practices and knowledge to areas of personal finance and financial planning. Understanding what the client wants and trying to comprehend their thinking process means that as a financial advisor, your job would become easier. When you recognize the clients’ spending habits, it gets easier to advise them on strict financial matters and helps open up the best ways for them to succeed.” 

Alex Williams, an ecommerce business owner, Certified Financial Planner, and the CFO of FindThisBest

Financial psychology is your greatest ally or enemy. 

“As a female CEO, I have a unique view on this. Psychology is the greatest ally or enemy in investing. The person in the mirror is hardwired to flee a burning building and sell when the market is tanking. Knowing that one behavior (fleeing) is life saving and the other (selling at market lows) is harmful is only half the battle. I tell all of my clients, good investing feels bad. And it does. Success in investing requires a mastery of your psychology.” 

-Elle Kaplan, CEO of LexION Capital 

It impacts all your clients’ financial decisions.

“Financial psychology is the study of how human psychology influences a person’s spending patterns and saving and investing decisions. A client’s psychology has a great impact on their financial decisions and the advising relationship I have with them. The most important emotions that affect a person’s financial decisions are greed and fear. Greedy investors tend to lose a lot of money, as they take greater financial risks for a greater return, while investors who are afraid, do not make money. This is because they have a fear of losing their money, and do not invest it in risky portfolios.”

-Jessica Chase, Loan and Finance Expert at Premier Title Loans

Financial Psychology plays a big role in advising sessions.

“Financial psychology is the branch of psychology that studies the beliefs about money that influence people’s financial decisions. My clients’ psychology plays a big role in determining their financial decisions. A large chunk of our sessions is spent on me advising them to be more rational in their spending decisions and not let their emotions dictate their spending patterns.”

-Frank Chase, Business Development & Finance Expert at Oxford Gold Group

It helps retain clients and builds trust.

“For me, financial psychology is the psychology and behavior of people that go into making a financial decision. What drives people to make small decisions such as purchasing a sweater or more significant decisions like buying a house. The economics and social science behind these decisions are what financial psychology means to me. Knowing my client’s psychology helps me understand their behavior and reasoning when it comes to making a financial decision. It helps me see things from their perspective, and I can better advise them. This improves our relationship and helps build trust, which is very important for retaining long-term clients.”

-Janet Patterson, Loan and Finance Expert at Highway Title Loans

Understanding financial psychology producers better outcomes.

“Essentially, financial psychology is the study of mind and behavior that influences one’s behavior to save, spend and invest money. This psychology is mostly applied to personal finance areas. Understanding the client’s psychology helps in producing better financial outcomes. The use of technology has provided an opportunity to build deeper relationships with clients and help them make effective financial decisions. The psychology and personality of the client is important to understand because it reflects on their spending, saving and investing habits. It makes it easier to formulate financial advice for them to aid their decisions.” 

-Adam Garcia, CEO of The Stork Dork and Financial Consultant

After interviewing these advisors and working with even more who use our MoneyMax tool, we can say with confidence that understanding financial psychology produces happier clients, better client relationships, and less work when it comes to retaining clients and landing new ones. 

If you’re a financial advisor, are there any other insights about financial psychology that you would add to this list?

Working with clients who value safety and hate financial risk

How to Work with Clients Who Value Financial Safety and Hate Risk

While financial risk takers can be tricky to work with, safety players are sometimes just as difficult. Safety Players tend to see financial success as a matter of luck or being at the right place at the right time. They are less likely than other Moneymax types to believe their individual actions don’t control their financial future. Because of this, they make financial decisions with minimal risks and can be more passive in their money management. 

Because safety players distrust risk so much, it can be difficult to get them to invest enough to create real wealth and they are the first to call, panicked, in a nervous market. However, if you understand these five distinctive personality traits about safety players, you can better serve them. 

Trait 1: Safety Players are deliberate decision makers

Safety players often take their time to make decisions, especially when it involves money or risk. They want to fully evaluate the situation and learn more about it before they decide whether to invest or not. When safety players first come to advisors, they often have little experience in wealth management, but as they learn more, they will become more confident in their decision making. 

Trait 2: They can be more passive in their money management

Because they question whether their individual actions lead to greater financial success, they tend to not put much value on them. This can lead to passivity and a lack of action when it comes to managing their money. One of the most important things safety players can learn is how their individual decisions impact their financial health. 

Trait 3: Tendency not to trust

While they are passive in managing their money, they are also slow to trust, which can be a real catch 22 for advisors. Because they are suspicious of risk, they don’t like to trust others with their money. To safety players, it feels scary to pass some of their hard-earned cash over to someone else. That’s why relationship building is so important with this group. 

Woman meeting with financial advisor

Trait 4: Safety Players seek “sure-things”

Because they are so risk-averse, they prefer structure and certainty when it comes to their finances–as well as other areas of their life. They often want to preserve what they have instead of trying to aim for more. Safety players want to avoid the risk of losing what they already possess. 

Trait 5: They like to be informed

Education is key with this group. In order to fully understand the risk of investing–and the risk of not investing–this group needs to be informed. Helping clients who prefer safety find educational resources can also start to build up advisor/client trust. 

Have you ever worked with a safety player? What other advice would you give to help financial advisors with this client type? 


Financial Psychology provides services and tools for Financial Advisors to add some personality to their advising. Their signature tool, the Moneymax Personal Profiling System, reveals someone’s financial psychology in less than fifteen minutes and enables financial advisors to give customizable advice. Located in Ohio, Financial Psychology has empowered advisors over the last 30 years in the United States, Canada, Europe, Japan, Australia, and beyond. 

Working with financial risk takers

How to Work With Financial Risk Takers as a Financial Advisor

Most financial advisors have worked with clients who take more risks than they should. These people will stop at nothing to get the power, wealth, and influence they desire. Often, high rollers are portrayed in a negative way and there is some truth to this portrayal; being a risk-taker can be a hindrance financially. However, with the right guidance and advice, risk-takers and high rollers can see high rewards. 

Of the nine Moneymax personality types, high rollers are the biggest risk taker. They desire power, influence, and wealth and aren’t afraid to take big risks. They enjoy the thrill of risky money decisions and in spending their money instead of saving it. While their risks can have high reward, their emotional decision-making can sometimes get in the way of their financial success.

There are five distinct traits you must understand about working with high roller clients. Once you understand these traits–and how to mold them into financially healthy traits, you can help your risk-taking clients see the ROIs they crave. 

Trait 1: Risk-taking isn’t something they are afraid of

You might have guessed high rollers are comfortable with, well, taking risks, but what exactly does this mean for their financial health? It can be a double-edged sword. Being comfortable with risk is good for making money–as long as it’s paired with well-calculated logic behind the risk. If your client is a risk-taker, they need to learn the difference between taking a meaningful risk that is goal-oriented and taking a risk for the thrill of it. 

Trait 2: They like being challenged

Risk-takers usually spend a lot of time out of their comfort zones and aren’t afraid to jump into a new challenge. At worst, this can lead to risky financial behavior if a client hasn’t acquired financial knowledge and skills. If they are educated on finances, this can lead to a high level of investment and effort from risk-takers who wish to acquire wealth. 

Trait 3: Risk-takers like things to move quickly

Often, high rollers get frustrated when they don’t see an immediate return on their investment. As a financial advisor, you need to be able to articulate why a balanced, slower plan might pay off in the long run. A good talking point with risk-takers is that a balanced, more moderate financial plan will give them more control in the long-run and allow them to take bigger, more calculated risks down the road. 

Trait 4: If they develop strong risk-calculation skills, they are likely to succeed

Often, we think of risk-taking as a dangerous personality trait. Yet, when a risk-taker can make calculated decisions and can evaluate the risks, they can be extremely successful.

 Trait 5: Refocus high rollers on achieving your goals

The image of a high roller is often a person who spends much of their time gambling, racks up credit card debt, and in involved in other risky endeavors. When risk-takers learn to refocus that energy on productive goals, they can find increased financial, professional, and personal success. In order to do this, risk-takers need to discipline themselves and only take on risks that are calculated and goal-oriented. 

Have you ever worked with a risk taker? What other advice would you give to help financial advisors with this client type? 


Financial Psychology provides services and tools for Financial Advisors to add some personality to their advising. Their signature tool, the Moneymax Personal Profiling System, reveals someone’s financial psychology in less than fifteen minutes and enables financial advisors to give customizable advice. Located in Ohio, Financial Psychology has empowered advisors over the last 30 years in the United States, Canada, Europe, Japan, Australia, and beyond. 

The Secret to Better Money Manaement

The Secret to Better Money Management For Your Financial Advising Clients

As inflation rises, wages stay stagnant, and debt cripples younger generations, the idea of financial success seems impossible for many Americans. Yet, there is one secret to better money management for your clients, even amidst tumultuous economic times: customized financial advice based on psychology. 

Most of the financial advice available online today–and in some financial advising firms too–is generic advice that doesn’t work for everyone. Customized financial advice based on a person’s specific situation is needed instead. Instead of one size fits all advice, invest in a tool, like the Moneymax Profiling System, which allows you to design customized paths to long lasting wealth based on your clients’ personalities and will set you apart as a financial advisor. When looking for a tool like this, make sure it’s rooted in the field of financial psychology. 

The fields of psychology and finance seldom join forces in any systematic way. Over the past 30 years, our company has been trying to bridge the gap between the two disciplines. We wanted to learn how financial advisors could understand the personality traits of their clients and the psychology behind their clients’ decisions and values. Our revolutionary idea and the research behind it has pioneered a new field: financial psychology.

Using our research into the field, we developed the Moneymax® Personal Profiling System, a cornerstone of Financial Psychology. It reveals how someone approaches money and the right type of financial advice based on their values, lifestyle, and psychology in less than ten minutes. Since its inception, it has helped financial advisors acquire clients and–more importantly–helped those clients achieve actual financial success for years to come. Since developing the tool, we have served financial advisors in the United States, Canada, Europe, Japan, Australia, and beyond for over 30 years. 

Before becoming the CEO of Financial Psychology, Thomas Shortreed was a financial advisor who saw how Moneymax transformed his own advising practice. “The Moneymax tool allows you to really know your client,” Shortreed said, “The client or prospect tells you how they think about financial decisions. After a review and discussion the client or prospect feels you really understand them. This allows for a more consultative approach to advice and higher implementation rate.” 

When you’re looking for a profiling tool to help you provide customized advice, consider:

  • How long the tool has been around–and if past users are happy with it. Tools that have an established reputation and happy clients are likely to be more effective than newer tools which aren’t as well tested. 
  • If the CEO or anyone high up at the company has used the tool as a financial advisor: someone who has been in your shoes and developed a tool they would use is much more likely to create an effective money profiling system.
  • The culture in which the tool was developed: different cultures have different psychological concerns. If you’re looking for a client profiling tool, look for one that either works within your country’s culture or has worked across many international settings
  • Well researched and rooted in financial psychology: look for a tool which is rooted in research and utilizes a background in financial psychology

Financial success is still an option for Americans, if they have access to the customized financial advice they personally need. With a profiling tool, you can give your clients that advice and make prospective clients feel like you truly “get” them and their relationship with money. 

How Your Financial Advising Firm Can Better Serve Business Owners

How to Work With Business Owners as a Financial Advisor

There are 582 million entrepreneurs worldwide with over 5.4 million new businesses started in 2021 in the US alone. The number of self-employed Americans and business owners in America is only expected to increase over the next decade and more of your financial advising clients could be business owners as a result.  But the financial advice you give to employees might not work for those who own businesses. Instead you have to understand entrepreneurs’ motivations and money situations in order to serve business owners as a financial advisor

The Psychology of Entrepreneurs  

Entrepreneurs tend to think outside the box, consider career achievements a priority and will take risks to achieve their goals. While some follow the typical image of an entrepreneur and run a large company with many employees or own a small business, others are “intraprenuers”, salaried workers who carve out an entrepreneurial niche within corporations or businesses. Others work a full time job and have a side hustle outside the office. 

In their money management, entrepreneurs are driven by growth and are willing to take risks as they see them as a necessity for high performance. While wanting to achieve results quickly often helps this type, it can also be a blindspot when it comes to financial advising since assets are often built slowly over time and not overnight. 

They also might need to learn how to create more balance in their life. The common stereotype for an entrepreneur includes sacrificing their personal lives for their business, but they might be sacrificing more than just that. Often, this type will sacrifice properly managing their money to instead focus on making more money. As this type learns the importance of money management, they can achieve better financial balance instead of striving for more money without a proper management infrastructure in place. 

While intrapreneurs might think like a business owner, the tactical financial advice would be similar to the advice given to employees. There are three other types of Moneymax entrepreneurs which might need different advice than those working for someone else:

  • Full time employees with a side hustle
  • Solopreneurs 
  • Entrepreneurs with employees 

No matter which of the three types of entrepreneurs someone falls under, all entrepreneurs are driven by professional goals. This personality type is driven to excel and is happiest when they are challenging themselves and striving for better achievements. 

While all entrepreneurs have similar motivations, weaknesses, and strengths when it comes to money management, they can be in very different professional scenarios. Each professional scenario has different considerations for you as a financial advisor

Full Time Employees With a Side Hustle

Many people these days are building side hustles on top of a full-time job, whether that side hustle is a passion project or intended to replace a 9-5 down the road. Clients with full-time jobs and side hustles might have a greater cash flow and more to invest, but they may also have more challenges.

Unlike employees with a consistent income, those with side hustles might have varying income from month to month, making it more difficult to know how much they should be investing. They also might be looking to reinvest in their business instead of building up assets. While you might be tempted to convince them to build up their investment portfolio, you should honor where they are and the investments they need to make into their own business. 

To fully understand how to best serve these clients make sure you consider how much money they need to invest in themselves, what the end goal with their side hustle is, and how much the monthly income from their side hustle varies. 


Solopreneurs can take a variety of forms from freelancers to those who are just starting out in their business and can’t afford to have other employees. These entrepreneurs may have subcontractors to help with their workload or could be doing all the work themselves. 

Similar to full-time employees with a side hustle, these entrepreneurs may need to focus more on investing in themselves and their business. It’s important to keep in mind their financial and professional goals when working with them, not how much you could make off their investments. 

Another concern with full time entrepreneurs, whether they work alone or have employees, is that they need to fund their own retirement and provide health insurance themselves. Since they don’t have a 401K through a company or company benefits, they need to do more financial planning. With these clients, it’s especially important to focus on building out a sustainable retirement plan as well as a fund to cover benefits such as health insurance and life insurance. 

Entrepreneurs With Employees

The most typical image of a business owner is someone who manages employees, has a large overhead, and might have funding from venture capital or business loans. These entrepreneurs’ finances will be the most complicated to manage because there are so many moving parts and stakeholders involved. 

Unlike a solopreneur, they have to consider the benefits, employment taxes, maternity leave, and more for multiple employees. They might also have external stakeholders, such as angel investors, a venture capital firm, or a board of advisors. This entrepreneur’s finances not only impact themselves, but the livelihoods and interests of many parties. 

In order to best serve this entrepreneur, you need to take into consideration these different groups and what their cash flow looks like. While you might provide them with similar financial advice about building up their assets that you would provide to other entrepreneurs, there are more moving parts to consider than with other clients. Set aside extra time to fully understand their financial situation and the varying stakeholders and considerations these entrepreneurs have.

No matter what type of entrepreneur you work with, you should be working with them as well as working for your own interests. Compared to some other money personality types, entrepreneurs take great pride in their professional accomplishments and often prioritize their business goals above other considerations.

13 traits that influence personal finance

13 Psychology Traits That Impact Money Decisions

Money decisions might seem objective on the surface and some are. Don’t spend more than you make, save for retirement, and consider saving up for a home are generally good pieces of financial advice but to truly understand why someone makes the decisions they do–good or bad–you have to understand how they approach their finances. 

In order to understand this, you must learn more about their financial psychology. Financial Psychology is an interdisciplinary field that studies how principles from psychology impact our financial decisions. 13 financial personality traits in particular influence many of our money decisions.

13 traits


This trait measures how involved a client likes to be in their money management. The more control they want over their money, the closer their score will be to 100. If one of your clients likes is constantly checking their stock portfolio and emailing you, they probably have a high level of involvement. 


This trait measures how proud a client is of their money management skills. The closer their score is to 100, the more pride they have in their money management skills. If a client constantly criticizes their ability to manage money, they have a lower level of pride. 


The more guided their decisions are by emotions, the closer they’ll be to 100 while the less guided they are by emotions, the further their score is from 100. A client who’s an emotional spender would score higher for this trait.  


If a client believes others are financially generous, their score will be closer to 100. In contrast, someone who thinks everyone is greedy and conniving in financial transactions would have a lower score. 


Confidence reflects how comfortable a client is with their money management skills. The greater their comfort level for managing their own money, the closer their score will be to 100. Someone who feels they are doing a good job managing their money and is comfortable talking about finances with a financial advisor would score higher for this trait. 


Power measures a client’s interest in using their money for public recognition. The more your client wants to use money for public notoriety, the closer their score will be to 100. Someone who invests their money in running for a local political office would highly value power. 

Work Ethic

Work ethic encompasses how likely a client is to believe hard work will bring success. The closer they are to 100, the more they believe in hard work. Someone who believes corruption and luck, not hard work, brings about success would have a lower score for this trait. 


The happier they are with their money situation, the closer their score will be to 100. A client who is miserable and always complaining about how they wished they had more money would score lower. 


The level of risk a client is comfortable with when it comes to investments is one of the most used financial psychology traits by financial advisors. A client who is eager to invest in new startups or in crypto currencies with high risk and reward will fall closer to 100 while a client who is scared to invest in safer mutual funds will be closer to 0. 


If a client feels their own actions determine their wealth, their score will be closer to 100. If they feel luck plays a bigger role in their money situation, their score will be closer to 0. 


Spending encompasses if a client enjoys spending or saving money. A score closer to 100 means they enjoy spending money more than saving while a client who is frugal and hardly ever spends money would be closer to 0.


Reflectivity refers to how reflective and analytical a client is in their money decisions. The more reflective a client is, the closer their score is to 100. 


If a client’s level of trust in the integrity of others’ dealings with money, their score will be closer to 100. Those who have less trust ion how others deal with money will have a score closer to 0. 

Often, it can take confidence, time, and the right questions to discover where a client falls for these 13 financial traits. 

But not with the Moneymax quiz. This tool measures where your clients fall on a scale of 1-100 for 13 characteristics in less than fifteen minutes. Based on their results for those 13 characteristics. If you’re interested in trying out the Moneymax quiz at a special discounted rate, consider subscribing to our newsletter. When you subscribe, we’ll send you a free gift and a discount code. 

People, financial papers, and coffee

How to Separate Money and Emotions For Better Wealth Management

To know and understand the motivating forces behind investing, to know and understand why one investor becomes tense about losses, why one becomes greedy about profits, and why one either overreacts or fails to react is, perhaps, more than half the investment battle. Money and emotions aren’t always an ideal pairing. If your emotions are managing your wealth, you may not be setting yourself up for success.

There is a high price to pay for the kind of innocence many investors bring to their investments and the way they interact with their investment advisors. Unfortunately, in many cases, to help maximize your financial returns, you must first help yourself master your emotions.

Often, bull markets are like blinders. Investors begin to believe in the fantasy that their stocks will always take good care of them and never disappoint them. But, when reality hits and the bull market turns bear, investors can be faced with challenging decisions and their gut emotions may take over.

There are certain important relationships which we must understand before we may be able to achieve a consistent degree of success in the world of investing and in the marketplace.

The first and foremost of these is that the majority of losses in the marketplace result not from poor trading decisions but rather from emotional and attitudinal causes. Investing by its very nature is an emotional business.

Few investors have the self-knowledge, emotional stamina or self-control to make rational, intelligent and profitable decisions, particularly in times of stress. So often, investors react wildly to bad news, frequently selling shares of perfectly good stocks–reacting with their emotional money minds rather than their rational ones.

Why is it that some investors may tend to make rational decisions, stick with their choices and strategies while others seem to act out their emotions and make investment decisions that may not lead to profit?

The field of behavioral finance has given insight into some mental miscues investors make that might sabotage and crimp their returns:

Fear of Losing Money

Psychologically, people give greater weight to a past loss than they do to a future gain. In fact, some individuals find losing money so distasteful that they talk themselves out of investing altogether. Some investors don’t make reasonable trade-offs because the drive to avoid loss sabotages any future gains or opportunities.

But when you make decisions out of fear instead of rationality, your decisions are seldom ever good. A 2019 study on entrepreneurship found entrepreneurs who made fear based decisions instead of rational ones were less successful financially.

Determine ahead of time exactly how much you can “emotionally” afford to lose as well as “financially”. They are often very different.

Worrying About the Wrong Risks

Investors are held captive by events that could be conceived as unpredictable or frightening events. People are traumatized by dramatic events. They can’t tolerate the anxiety that accompanies them.

This can be seen in a modern day context where, for the past 3 years or so, even successful business leaders have been predicting an economic collapse worse than the great depression. While there have been adverse negative effects due to COVID-19, it has not been on the scale of more dramatic predictions.

Investors often become blind and deaf to others’ advice in these times and tune out advice from others, including their financial professionals. They exaggerate current crises.

What’s worse is that they forget the wisdom of lessons from the past. They overlook the fact that people who stayed fully invested during previous crashes recouped their losses.

Help yourself base your decisions on what you can control, not on those factors you can’t control. Review the rationale for your current strategy and ask yourself and your financial professional if it still makes sense. If it does, review why the strategy still makes sense from time to time so you can help regulate any impulsive and emotional reactions that may bring you off course.

Educate Yourself

Smiling woman holding money

Knowing thyself isn’t just for characters in Shakespeare’s plays. It’s also a great way to better manage your finances. Since emotions play such a big role in financial decisions, it’s important to educate yourself on psychology as well as investing in financial education.

If you are a financial advisor, you most likely have strong financial literacy and have studied personal finance for quite some time. However, you might not have studied the psychology behind it.

Oftentimes when we look at just the finance side of wealth management, we can get confused by our clients actions or ideas. However, if we studied the psychology of finance, we would better understand our clients.

One of the best ways to educate yourself on financial psychology is with the Moneymax assessment. This assessment not only allows you to know your clients’ and potential clients’ personality types, it also reveals where they fall on a scale for 13 financial characteristics.

If you understand the psychology of your clients as well as the principles of personal finance, you are better able to manage wealth.


As you evaluate your investment strategies and individual situations, whether with your financial professional or on your own, consider these points:

Investors are more prone to make or lose money as a function of their emotions and attitudes than on the basis of their stock selection or trading system.

The best system can be rendered a losing proposition by inappropriate implementation due to emotional and behavioral limitations.

Appropriate or successful investor behavior can be learned to a large extent. Education is essential to helping investors stay in control and continue to grow, particularly in learning self-regulation and self-control.

Acknowledging and understanding your emotions is an important step in staying on track with your long-term financial plans when challenging economies become the everyday reality.

Likewise, learning to control your emotions even when the market turns upwards is equally important.

Finally, remember, if you find yourself questioning your decisions, talk to your financial professional, they are there to help you when you have to make the tough decisions.

Setting yourself apart as a financial advisor

Getting Clients as a Financial Advisor By Setting Yourself Apart

If you’re trying to distinguish yourself as a financial advisor, you need to set yourself apart from the rest. Every financial advisor has access to similar asset allocation tools, calculators, and risk assessments, but even with the same tools, some financial advisors get more clients than others because they’ve learned how to distinguish themselves from the competition. 

One of the best ways to distinguish yourself from your competitors is by offering a more comprehensive, holistic service that achieves the personal financial goals of your clients and attracts new clients because they feel like you really get them. 

While it can be tricky to offer more holistic financial advising services, it doesn’t have to be. One financial advising tool can offer you the perspective you need to stand apart from your competitors in fifteen minutes or less!

Offering a Holistic Perspective

Financial advisors often focus only on the money and not on the money manager. While it might make sense to us to offer objective advice, money can be a very emotional topic for many people.

It’s not enough to only understand how the financial side of advising works, you should try to understand what influences your clients’ money decisions and what they value financially. Do they want to invest more in travel or in starting a family? Are they optimistic or pessimistic about their money situation? Knowing details like these gives you a more holistic view of what sort of financial advice they need. You need to know your clients’ financial psychology.

Financial advisors talking to 2 clients

When you hear this term you might say, “Psychology? I’m not interested in becoming a therapist!” And that’s not exactly what it is. Financial psychology simply lets you know more about why your clients and prospective clients make certain financial decisions. It takes the guesswork out for you and makes your clients and prospects feel understood.

However, learning about your clients’ financial psychology can be time intensive and some of it can be difficult to learn just from asking questions. While there are some tools out there that help you understand parts of your clients’ financial psychology, such as risk assessment tools, you need a more holistic approach to understanding your clients. 

What is Moneymax? 

But what is this secret tool that can set you apart? Moneymax!

Moneymax helps you stand out because it’s unlike any other financial advising tool on the market and it adds empathy and personality to your advising. 

Studies show empathy drives better client relationships and better portfolio performance. This tool not only lets you learn more about your clients, it also shows your clients that you, as their financial advisor, really understand them. Maybe better than they understood themselves! 

Moneymax puts you in a position of more trust and strengthens your ability to lead a client more effectively to their financial goals. The Moneymax tool allows you to:

  • Truly “get” your clients
  • Increase your prospective client conversion rate
  • Develop better relationships with your clients 
  • Have less sales-y interactions and more meaningful ones

No matter what type someone gets, the Moneymax quiz makes your clients feel like you truly “get” them and transforms sales-y calls into more authentic conversations. If you’re ready to take your financial advising practice to the next level, it’s time to invest in Moneymax!

How the Moneymax Tool Was Created

This Moneymax quiz was formulated as a part of a research study in the 1990s. It’s been retested two times since then and had the same results, making it a timeless quiz you can use for years to come. It measures where your clients fall on a scale of 1-100 for 13 characteristics. Based on their results for those 13 characteristics, they will be assigned one of nine personality types. 

Moneymax is a personality assessment based on research by Dr. Kathleen Gurney. It gives you insight into your client’s money personality and money management preferences. 

The assessment takes clients’ only minutes to complete and provides a meaningful report about their money personality. With Moneymax, you can provide your clients:

  • More appropriate asset allocation
  • Greater satisfaction with the process
  • More confidence and peace of mind
  • More efficient communication

Whether you use Moneymax or not, it’s important to approach your clients with a more holistic view of their financial psychology. Understanding the full picture will set you apart from competitors and will lead to a long-term, mutually beneficial relationship.

That being said, Moneymax is the easiest and most effective way to understand your clients’ financial psychology and how to guide them towards the best financial decisions. Don’t believe us? Subscribe to our newsletter for an exclusive deal to try Moneymax’s profiling tool at a discounted price. 

Stack of credit cards

How To Mindfully Manage Your Credit Card

Credit cards can offer peace of mind, but more often than not, they create undue stress. We talked to credit experts and mental health professionals, who say you can bring tranquility into your financial life by following these five strategies to mindfully manage your credit card.

1. Clear away credit card clutter

Have you ever stood at a cash register, shuffling frantically through a stack of plastic to find a specific retailer’s card? Trying to keep track of and manage too many cards can be overwhelming. So, if you have more than a few cards, experts recommend that you pare down your collection.

“You need to lighten your load,” says Catherine Williams, Vice President of Financial Literacy for Money Management International, a credit counseling firm with offices in 22 states. She recommends keeping two multi-use cards.

One should be a rewards card to use instead of cash — to buy items such as groceries, gas and monthly yoga classes — that will make it easy to track spending and prevent worrying about cash getting lost or stolen. Never carry a balance on a rewards card, because they have high interest rates.

The second card, Williams says, should be a very low-interest credit card for unexpected big-ticket purchases — such as a new household appliance or car repair — that you might have to pay off over a few months.

If you have too many retail credit cards from clothing, electronics and home improvement stores, Williams recommends paying down your balances and closing one or two cards every three to four months. “It’s a slow and steady way of changing a habit,” Williams says.

2. Use plastic for self knowledge

The maxim “know yourself” applies to finances as well as other areas of life — and a credit card can serve as a valuable tool for gaining self-knowledge and clarity, experts say.

“I love the idea of using a credit card to understand your budget — you can get a lot of peace of mind from it,” says Kit Yarrow, a consumer psychologist at Golden Gate University in San Francisco, who recommends learning about yourself by putting all your purchases on one credit card for a month. “You can come up with real data and new insights about how you’re managing your money,” Yarrow says.

Hard numbers can be useful, Yarrow says, because consumers tend to underestimate the amount they spend on routine purchases — which can blur together in the mind.

“A lot of people have no idea how it adds up when they spend on gas, tolls, coffee, cookies or that organic arugula they decided to throw in the cart at the grocery store,” Yarrow says.

And, consumers sometimes fool themselves on luxury purchases — such as new designer shoes — to convince themselves it’s OK to splurge. Yarrow says: “They might tell themselves, ‘Oh, I haven’t bought any shoes lately,’ when, in fact, they bought three pairs this month.”

3. Clarify your financial priorities

One key to financial peace of mind, experts say, is figuring out how to use credit cards in harmony with your values and priorities. “We often get caught up in routine and fill our lives with the small things and then there’s no room left over for the big things,” says Elisha Goldstein, a psychologist and co-author of “A Mindfulness-Based Stress Reduction Workbook.”

He recommends taking time alone to reflect on your priorities, then thinking about how they relate to your finances.Woman with credit card, phone, and coffee

Once you’re clear on priorities, you can sit down at the beginning of each month and decide how you will spend and use your credit cards in a way that reflects what’s important to you.

When you’re trying to cut down on credit card spending, it’s also important to take small steps. For example, you can decide not to put anything on your card for 30 days to cut down on spending. Making small, specific commitments to yourself provides peace of mind and better control over your behavior.

4. Practice mindfulness with money

If you’re trying to change your credit card habits — especially if you’re caught up in a cycle of spending now and regretting it later — mindfulness can help, experts say, by helping to make you aware of habits that longer work for you.

“You might normally walk by a window and see a sweater and, before you know it, you’re walking out of the store with the sweater and have thrown it on the credit card,” Goldstein says. So, if you wanted to practice mindfulness rather than just reacting impulsively, you would take deep breaths, pause and become aware of your body, your emotions and your thoughts, Goldstein says.

“The foundation of mindfulness is being intentional, paying attention to what’s happening in the moment,” Goldstein says. “And when we pay attention to cravings, we realize these are just thoughts and not things we need to necessarily act on.”

5. Accept your financial reality

A downside to credit cards, experts say, is that they allow you to pretend you have more money than you actually do — so it’s important to practice acceptance of your actual financial reality.

One of the biggest stresses you can create in your life is not understanding or admitting what you can actually afford. Not knowing your financial reality causes stress in your wallet and emotionally.

Knowing — and accepting — what you can actually afford isn’t just a matter of hard numbers. It involves your priorities, your wishes and your emotions, too.

For example, maybe some friends want to go to a pricey restaurant — and technically you could afford it, but you know you’d be eating ramen for the rest of the week. If you go, you won’t enjoy it as much as if you could afford it or budgeted for it. That sense of regret will create an emotional price when the check comes as well as a monetary one. By being honest with yourself and your friends about what you can afford, you will have greater peace of mind.

If you practice these healthy habits, you can expect to feel calmer, more in control and more balanced about your credit cards — and the rest of your financial life.