If you are a successful businessperson who has amassed a substantial amount of wealth in your time, you might assume you have an excellent relationship with money.

Yet although your financial achievements are something to be proud of, it could be worth examining your emotional connection to your wealth, especially as you approach retirement.

Moreover, here are two helpful questions to ask yourself about your relationship with your finances, and why these matter for business owners and executives approaching the next phase of their lives.

1. Am I in a scarcity mindset?

A “scarcity mindset” describes the feeling that you’ll simply never have enough of a key resource, like money. It could manifest as a sense that something bad is always around the corner, and that you will always experience financial struggle.

While acting responsibly is crucial for long-term wealth security, living with a scarcity mindset could lead to financial behaviours like:

• Being “miserly” because you are worried about losing your hard-earned money
• Limiting the opportunities you could pursue, such as travelling to a bucket list destination with your family
• Losing sleep due to obsessing over “what if?” questions
• Distrust of others, including family members, friends, and professionals, due to the belief that someone is always trying to take something from you.

You may be surprised to learn that plenty of wealthy individuals operate on a scarcity mindset. If you identify with some of the above feelings and characteristics, it could be because:

• You may not have grown up with the amount of wealth you have now
• You may not realise just how much wealth you have, and what it could be used for over the years.

So, how does a person shed the scarcity mindset? You could start with the following pointers.

Notice your assumptions about your wealth, and other people’s intentions towards it, then challenge them with data

Do you automatically presume that someone wants to take your wealth away, or that you won’t be able to afford a certain opportunity?

If so, try to confront these messages with the facts. Get to know an individual before judging them, and look into how much an opportunity might cost, and the long-term ramifications of taking it, before you say “no”.

Work with an impartial professional who can review the details of your financial situation

A large component of the scarcity mindset is a lack of trust in those around you. One move that could combat this feeling is to strike up a professional relationship with an independent financial planner.

An experienced financial professional will take an impartial view of your finances, looking at the data while listening carefully to your goals.

Then, they could help you to create a financial plan that serves those goals, helping you to act with knowledge and confidence rather than the fear of financial loss.

2. Do I trust my long-term financial viability?

If you are approaching retirement, or are already in the early retirement years, you may have concerns about your long-term financial viability.

Indeed, if you are drawing retirement income from several sources and attempting to ensure this income lasts a lifetime, you may not always feel confident in your financial choices.

As a result, you may feel anxious when handling your financial affairs, and could resist offering funds to the next generation for fear of not having enough for yourself.

With this in mind, it could be helpful to examine:

• How you feel when you discuss your financial situation with others, or make a large transaction
• Your current financial strategy and whether you trust it to support you in the future as well as for now
• The worries and concerns on your mind, so you can work towards assuaging them.

Once you have identified the pain points of your relationship with money, particularly pertaining to your later life, the road is then clear for you to change your approach if needed.

If you feel you need support when changing your approach to your finances, we can help.

Bespoke financial planning with us at iQ Financial could help you to readjust your wealth mindset by challenging the patterns you have created. Our independent professionals can help you to be a more confident, secure version of yourself – and with this shift could come a more positive approach to your finances too.

Get in touch

We’re here to help make your money work harder for you, so you can get on with the business of enjoying every stage of your life. Email us at clients@iqf.ie, or call 353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.