Integrating your finances with happiness and well-being should be easy. But for many people it is anything but that.
And when it comes to retirement, the anguish of dipping into savings is real for retirees who hold on tightly to their money for fear of survival.
In his new book, “Wealth in the Key to Life: How to Find Your Financial Harmony,” Preston D. Cherry, a certified financial planner, attempts to show smart ways to navigate the mixed emotional and psychological aspects of financial planning.
Cherry offered insights and advice in a conversation with Yahoo Finance. Here are edited highlights from that conversation:
Kerry Hannon: Why does money create such emotional chaos for some people?
cherry preston: It’s because we exchange ourselves for money. We work for it. Every day we exchange a part of our being to obtain income. Because you are giving a part of yourself every day, that transaction gives soul to money. It is a moving exchange. Your identity is in the money in your bank account.
How can we get unstuck when it comes to dealing with our financial lives?
It’s about giving yourself permission. To begin the takeoff process, you should ask yourself the following questions: What stage of your journey are you at? 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 do you want to do? Are you healthy?
Can you explain to us the importance of reflecting on how we spend our money?
It is necessary to be able to do this reflection without shame or judgment and reject social norms and stigmas. God forbid you want to go buy a new car. My wife and I are thinking about buying a Cadillac Escalade. The price of a 2025 Cadillac Escalade begins [at] around $90,000. That is a choice and a preference. We have the ability 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 permission to do so.
This is a permission book to live your life however you choose, as long as you have a financial plan. If someone makes you feel ashamed for spending your money a certain way, you should say MYOB, that’s your business.
Read more: 5 psychological money tricks to reduce 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 couple is fluid. Your relationship has flexibility. It fits. It has soul. I call it the humanity of money. You give yourself permission to earn the resources you need so you can allocate that money to your preferences and your purpose.