Episode 121: The Relationship You Want with Your Financial Advisor with Dasarte Yarnway
Dasarte Yarnway is the Founder & Managing Director of Berknell Financial Group, an innovative independent wealth management firm focused on helping millennials and seasoned investors design their best lives.
Since the firm’s inception, Berknell Financial Group has become one of the most notable millennial-led financial services organizations. In an industry that focuses on revenue and dollars-invested, Dasarte realized that a firm’s value is created through how they could invest in their clients. Through this, The Wealth Bridge™ , Private Client Groups and Berknell Athletes were created. With his passion for listening to his clients greatest concerns and applying realistic solutions, Dasarte has become the go-to partner for millennials, growing families and seasoned investors alike. Berknell encapsulates this approach in their motto: Advice With You In Mind.
Coined a “financial thought leader” and Guru by NerdWallet and Financial Planning Magazine, Dasarte believes in meeting you where you are. He offers advice and insight through his weekly podcast, The Young Money Podcast, three books (Dating Benji 2016, Young Money 2018, Pay Me In Equity 2019) and weekly blog. His prayer is that you may design your wealth on your terms.
HERE’S WHAT YOU’LL LEARN FROM THIS EPISODE:
The story of how Dasarte got into the financial world
The group Dasarte likes to empower around their finances
How he built an ecosystem of financial knowledge for a community of people
Why Dasarte embodies a mindset of servant leadership
Applying the R.I.I.T.E. planning process
The reason Dasarte has applied the lighthouse method in all that he did
What the bigger picture for Berknell Financial looks like
The changes Dasarte has made to build his business more efficiently
The responsibility Dasarte feels to improving the financial industry
The hardest business lesson learned by Dasarte
The niche that Berknell Financial is continuing to reach
The biggest thing many clients don’t understand
The unique challenges athletes face with financial decisions
Who the real hero is in the advisor-client relationship and why
Change and control go hand in hand. Some changes fall easily into your scope of control, whereas others remain just outside it. You can’t control the weather no matter how much you wish that sunny January morning was actually sparkling snow. But there are other times when it doesn’t feel like you have control over a situation when you really do — and your personal financial health (and money mindset) is certainly one of them. People often fixate on the money aspects they can’t control, like the market or returns, instead of focusing on what they can control like savings, spending, investing, goal-setting, and more.
When it comes to personal finance, whether or not you feel in control has everything to do with perspective. Your financial perspective is also known as your money mindset. What is a money mindset and do you have the power to change it? Let’s find out.
What’s a Money Mindset?
Similar to a money script, a money mindset is the unique attitude, perspective, and narrative you weave using your thoughts, actions, and beliefs toward money. Your money mindset extends beyond the bounds of your personal life and enters into your general feelings toward finances.
Your money mindset informs the way you manage, save, spend, and invest your money. When you better understand your perspective toward your money, you begin to see where your financial habits come from. A money mindset influences your thoughts and actions, which can have both positive and negative consequences.
Someone with a healthy money mindset likely feels confident, secure, knowledgeable, and energized about their financial life. Someone with a negative money mindset might feel anxious, guarded, or uncomfortable about their financial situation. Not sure where you fall? Ask yourself some questions to help shed light on your money mindset:
How does your financial situation make you feel?
Are you comfortable talking with your spouse, parents, friends, etc. about money matters?
Do you like your financial habits?
Are you secure in your financial future?
Do you often compare your financial situation to others?
Are you confident you can achieve your financial goals?
These questions help reveal how you view money. It illustrates how you see your debt, whether you make healthy financial choices, how confident you are in your financial future, and so much more.
How is Your Money Mindset Formed?
Your money mindset is formed from your distinct lived experiences. Everyone has a different story and relationship with money because everyone has had different experiences with it throughout their lives. Someone who worked during high school and college might have a different perspective on saving than someone whose first job was well into their 20s.
Along with your personal experiences, your mindset is also formed by how money impacted the people closest to you.
Was money a taboo topic in your house?
Were your parents or loved ones constantly stressed about money?
Did your family prioritize charitable giving?
Was financial literacy a core topic of conversation in your house?
All of these past experiences likely influence your attitude and approach toward money today. Someone who grew up in an environment where money was a sore spot might not like managing their finances (or might always worry about having enough money to support themselves and their family).
Your attitudes and perspectives are shaped by the people around you, and those closest to you tend to profoundly influence your thoughts and beliefs. As the saying goes, you are who you spend time with,
Why Care About Your Money Mindset?
As noted earlier, your money mindset is directly connected to your current financial habits. It affects how you approach money, the way you view and use debt, how you think about your future, and how you view the financial habits of others.
When you know how you approach money, you’ll be more equipped to make intentional decisions that push you in a positive direction. After reflecting on this concept, you may realize you lean on your credit cards too often for purchases you don’t need and that don’t further your goals. You may also discover your propensity for giving comes from a long line of generous role models.
Your money mindset also reveals both your positive and negative traits regarding financial management. This concept isn’t inherently intuitive. It’s critical to spend some time thinking through these questions and being honest with yourself about your attitude toward your money.
The best thing about a money mindset? Like perspectives, they can shift. Here’s a few ways you can change your mindset to improve your financial outlook.
5 Steps to Change Your Money Mindset for the Better.
Personal finance fluctuates and changes, which always leaves room for improvement. Remember, your money mindset is something you can control. Here are some ways you can evolve and make progress:
1. Believe You are Destined and Deserve Success
Too often, a negative mindset leads people to give up on their financial goals. It’s important to approach your money from a place of openness, curiosity, and excitement. Believing that you can reach your goals and find success is the first step. Once you have that foundation, you’ll be able to construct habits that support those beliefs.
This doesn’t mean your entire financial road will be paved with rainbows and sunshine, but it does mean you’ll allow yourself to find success. How can you shift this perspective? Spend some time setting new financial goals. Your goals are the foundation of your financial plan. Once you have your goals, set some key milestones to celebrate as you work toward them.
Starting from a positive headspace will help you make choices that are aligned with those productive thoughts.
2. Picture Your Future Self
Sometimes it’s crucial to flip this tough interview question back on yourself. Where do you see yourself in 5, 10, 20, even 30 years? Where have you grown? What have you accomplished? What do you want for your future self? Picturing your future can be a telling exercise as it can reveal if you’re on the right path to attaining it.
Maybe starting your own business is a critical milestone in your life. You might suddenly realize you haven’t started saving for this venture or really thought about the type of business for you. Fill in those missing pieces so you can set yourself up and bring that future vision to life.
You might also try picturing your dream retirement. Where are you living? How are you spending your time? Are you fulfilled? When you can see your future self, you can find the motivation you need to get there. Maybe this year commit to maxing out your retirement accounts or increasing the contributions to your other investments.
3. Give Freely and Generously
Your comfort level with giving back to causes, organizations, and people you care about says a lot about your money mindset. In general, those who intentionally make space for giving feel more confident, secure, and fulfilled with their money.
Every person will have a different capacity for giving, but when you feel comfortable giving away some of your money, you’ll move from a space of scarcity to one of abundance.
A scarcity mindset is a dangerous narrative, one that leaves you constantly chasing the idea of “enough”. Abundance, on the other hand, is about setting yourself up for financial success and structuring your money in a way that brings meaning and fulfillment.
4. Immerse Yourself in Knowledge
One of the best ways to combat negative habits is to learn healthier ones. Financial management isn’t simply intuitive, it’s something you need to work toward and spend time with to get right.
Take some time to read books, blogs, and articles. These resources can broaden your perspective and help you improve the areas where you’re struggling.
Talk with family and friends about the questions you have. They might be able to share their wisdom or perhaps just open a line of conversation.
Seek out a professional. A financial advisor can help address your money mindset and give you practical tools to improve it.
Knowledge is power and making the most of the resources available to you will help you shift your perspective.
5. Know Where You Are and Where You Want to Be
To change something, you need to understand two elements:
Where you are.
Where you want to be.
Let’s use investing as an example. When you know you veer into a scarcity mindset when the topic of investing comes up, you can use the tools and resources around you to overcome those feelings. If you want to reach your financial goals, odds are you’ll have to embrace investing.
To embrace the role investing plays in your finances, do some research on what investing means to you. Understand your risk tolerance, set goals, and work with someone you trust. All of these elements will help you build a positive and fulfilling mindset.
Your money mindset powers your thoughts, attitudes, and perspectives toward your finances. Remember, you can control how you view, approach, and manage your money. By understanding your current money mindset, you’ll be able to create positive habits that help you accomplish your goals.
We love talking about money around here. If you want to learn more about your money mindset, give us a call.
Episode 120: Diversity and Inclusion in Financial Planning with John Eing
John Eing is a partner and financial advisor at Abacus Wealth Partners. As a financial advisor, John is passionate about simplifying and demystifying finances for his clients, and creating sound financial strategies allowing them to do what they love most. He is also a member of the firm’s M&A team and investment committee. Prior to joining Abacus, John was the Controller of Wells Fargo’s $30B asset-based lending group. He holds an Executive MBA from the Anderson School of Management at UCLA, a BA in Economics from UC Berkeley, is a Certified Public Accountant, and a CERTIFIED FINANCIAL PLANNER™.
In his free time, John and his wife, Andrea, enjoy spending time with their two children Nathan (8) and Mia (4). In his free, free time John is an avid fan of the Los Angeles Lakers.
When you look back on 2020and the pandemic, what would you like to reset?
Perhaps it’s more time with your loved ones, better work-life balance, adopting healthier eating habits, getting more sleep, or using your money wisely. There are likely many areas of your life that you want to revamp. The whirlwind of 2020 taught us many lessons – how to work, maintain relationships, and experience personal growth during a pandemic.
The coronavirus pandemic forced everyone to change their behaviors, especially with money. Make 2021 the year you take intentional steps to improving your life and your finances. How can you accomplish that goal? Here are 5 ways you can reset your finances in a pandemic.
1. Set New Goals that Reflect Your Values.
When you survive something difficult your outlook on life – especially goals and priorities – tends to shift. While your top priority before the pandemic might have been getting a promotion, maybe you’ve realized your job isn’t fulfilling so much as it puts food on the table.
This year, maybe change your goal to search for a career you’re passionate about – one with visible impact that offers the joy and balance you need. Take the time to reevaluate your goals. There are some you might not have been able to reach last year and others you want to makeover. Ask yourself:
How have my priorities shifted during the pandemic? In what ways should my goals reflect that change?
What progress have I made on my current long-term goals like retirement?
Were there any goals I put on the backburner? Can I give them a new life in 2021?
One way to give your goals a fresh purpose is to make them SMART. Smart goals clarify the goal-setting process because they ask you to think more critically and thoughtfully about each goal you bring to the table.
Let’s break down this acronym using the example of finding a more meaningful job:
Find a job where you can make an impact.
Engage in a meaningful job search (a.k.a no rapid applying). Thoughtfully research companies and only apply to positions aligned with your definition of impact and fulfillment.
Ensure you have the proper education and experience. Should one area fall short, see how you can fill the gap (i.e courses, networking, etc).
Make sure each position you apply for is aligned with your goals and values.
Set a time frame for finding your new job (such as an ideal 6-month job hunt).
Now is the time to reassess what’s most important to you and to organize your life around those elements. Taking a meaningful approach to your goals will help you achieve them.
The pandemic may have altered your priorities and that’s okay. Take the time to clearly articulate those priorities and how your financial resources can support them in the coming year.
2. Adjust Your Finances for Life Changes.
If there’s anything the 2020 pandemic taught us, it’s that things change. You may have had a 5-year financial plan, but as the saying goes, “Life likes to get in the way.” The pandemic may have moved you into a bigger house or maybe you even started (or added to) your family.
Every new adventure brings different financial needs, so take time to adjust your finances to your real life. This advice pertains to your budget, spending, saving, investing, goal-setting, and more. Make 2021 the year of alignment, where your money is truly representative of your life.
For example, buying a new home sets off a chain reaction of other expenses like automating mortgage payments, saving for property taxes, figuring out utilities, and budgeting for new paint and furniture for the nursery.
The bottom line is your finances will need to adapt to your lifestyle. No matter how well you plan, life will always shift and you’ll need to align your finances with those changes to stay on track.
3. Build Up Your Emergency Fund and Adapt Your Savings Plan.
Did you have to dip into your emergency fund to cover unexpected 2020 expenses? If so, don’t worry, that’s what the fund was there for. Your emergency fund helps safeguard your finances in an unexpected situation like a job loss, hospital needs, necessary travel, etc.
Using emergency money to spot you in a pinch is an essential financial planning tool. When you dip into this fund, it’s important to build the fund back up again. Throughout this year, allocate a portion of your savings to your emergency fund.
While most advice encourages you to save 3 to 6 months of living expenses, you might want to increase that number if you have more debt, a family, inconsistent income, or you just want an extra cushion.
Was your emergency fund enough to cover your expenses?
Do you need to save a little extra this year?
How can you intentionally add to your fund?
It’s also prudent to reevaluate your savings strategy. Given the turbulence of 2020, you might want to save more of your take-home pay. Think about both the short-term and long-term goals you’re working toward.
What can you do to further those goals?
Did you add any new goals to the table like saving for a child’s education or planning a well-deserved vacation?
Your goals should be the driving force behind your savings plan. When you look at your goals and savings in tandem, you’ll be better able to build a strategy tailored for you.
4. Take Another Look at Your Cash Flow.
Cash flow is all about balancing money coming in and money going out. In times of stress, your cash flow management might be the first thing to go. When was the last time you checked your expenses? Are you surprised to see you’re subscribed to every new streaming service? Did you ever cancel that meal service you tried for the first-week promo?
The new year is a great time to check your spending habits. Try to do the following:
Track your spending. Whether it’s an app, excel sheet, or pen and paper. Knowing what goes out and what comes in will help you trim your budget, freeing up more for saving and investing.
Ditch the negative spending habits. Every one of us has negative spending habits we’d like to kick to the curb – retail therapy, excessive dining-out, liberal use of Amazon Prime, etc. Be honest with yourself about where you fall short and take productive steps to make healthier choices.
Bring intention to your spending. Spending money well becomes a lot simpler when it’s done with intention. Ask yourself, does your purchase bring you joy? (Note we said joy, not happiness). Is your spending aligned with your goals, values, and priorities? Does your spending lead to lackluster financial results? When you reframe spending in this way, it becomes more natural to infuse spending with your values.
Prioritize your savings. Part of maximizing cash flow is ensuring you have enough of your income saved and invested. You want to establish a strong emergency fund, contribute to your retirement accounts, save for other goals, and invest in the markets.
Remember, financial planning is an ongoing process. Your spending, saving, and investing will likely fluctuate, which is why your goals and values are essential to guiding the process. When you lean on goals and values, you’ll have a clearer sense of what to do next or at least have the right questions to help you get there.
5. Zero-In on Your Investments.
When you think about a pandemic you probably don’t think about focusing on your investment plan, but that’s exactly what you should do. Many find it difficult to continue investing during tumultuous times, but for most people the best course of action is to stick with your plan.
When you build your investment plan with a trusted advisor, you can be confident your plan takes into account your risk tolerance and capacity, time horizon, and goals. If you’re thinking about adjusting your allocations, ask yourself:
Has your risk tolerance or capacity changed?
If so, work with your advisor to change your allocations to better reflect your preferences.
Are you near a big life transition?
Perhaps you’re starting a business or just had your first child and you need access to more cash. These life moments might also mean you and your advisor should revisit your allocations to ensure they still align with current and future circumstances.
Have your long-term goals changed?
Still hoping to retire by 40? Do you want to open your own business? If your long-term goals haven’t changed, it’s likely best to leave your investments alone. Investing is built for the long-haul. Even though there will be ups and downs along the way, it’s key to remain as calm as possible and take change one thoughtful step at a time.
If you can afford to remain invested, it’s usually best that you do. Your investments set you up for reaching future goals and maximizing the future you.
Take Your Finances to the Next Level
Though many would say 2020 wasn’t the most financially prosperous year, today marks a new year and new opportunities to take control of your financial life. One of the best ways to do that is to work with a financial advisor. Your advisor will be able to help you transform your financial resources to support the things that matter most to you.
Your money has purpose and meaning when you align it with your goals and values. We’d love to help you make those critical connections with your finances this year. Set up a time to talk with us today!