It should be easy to integrate your money with happiness and well-being. But for many people, it's anything but.
And when it comes to retirement, the angst about tapping into savings is real for retirees who are clinging to their money in case they outlive them.
In his new book, “Wealth is the Key to Life: Finding Your Financial Harmony” Preston D. Cherry, certified financial planner, sets out to show smart ways to navigate the emotional and psychological aspects involved in financial planning.
Cherry offered insights and advice in a chat with Yahoo Finance. Here are the edited highlights of that conversation:
Kerry Hannon: Why does money create such an emotional mess for some people?
Preston Cherry: It is because we exchange ourselves for money. We work for him. We exchange part of our existence every day in order to earn income. Because you give a part of yourself every day, that transaction gives the soul of money. It is a soul exchange. Your identity is in the money in your bank account.
How can we become unethical in dealing with our financial lives?
It's about giving yourself permission. To start the no-nonsense process, you need to ask the questions: Where are you on your journey? Where are you with your career or 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 elaborate on the importance of reflecting on how we spend our money?
You need to be able to do this meditation without shame or judgment and push back on social norms and stigma. Heaven forbid you want to go buy a new car. My wife and I are looking at buying a Cadillac Escalade. The price of Cadillac Escalade 2025 starts (at) around $90,000. That's choice and preference. We have the ability to do that. Our savings rate is met. And there is nothing wrong with that. We do not owe anyone our explanation. We give ourselves permission to do that.
This is a book of permissions to live your life the way you want, provided you have a financial plan. If someone makes you feel ashamed of spending your money in a certain way, you need to say MYOB, mind your own business.
Read more: 5 psychological coins to cut 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 partner is fluid. Your relationship has flexibility. It adapts. It has a soul. I call it money humanity. You give yourself permission to earn the resources you need in order to allocate that money for your choices and purpose.