Disney/Pixar's (DIS) summer hit movie “Inside Out” features five characters each depicting an emotion – Joy, Sadness, Anger, Fear and Disgust. But money decisions based on emotions -- like happiness, commitment, or fear -- can turn your finances inside out, according to Joe Duran, founder and CEO of United Capital, which manages nearly $15 billion.
“Typically in a financial situation, you are very reactive and turn to your underline money mind,” said Duran.
Finding your ‘money mind’ and being aware of it can “help make people see how their own biases create the traps and the frustrations they have about money.”
Duran, who also wrote “The Money Code: How to Improve Your Entire Financial Life Right Now” is taking a different approach to wealth management. He calls it 'financial life management', which he defines as “making sure you make choices that insure you enjoy life along the way" and not letting savings run dry.
“We think people care more about maximizing their lives," he said. "That means sometimes you want to spend more money and make choices that might not optimize how much money you have but will make sure you have the best possible life along the way."
Surveys repeatedly find money to be a big stressor for most Americans.
"It’s also the source of a lot of frustrations and aggravation,” Duran said, adding that knowing your “money mind” and knowing your biases will help individuals avoid “repeating the same mistakes over and over again.”