How do you give financial advice to clients that deals with their emotions, and not just dollars and cents? OnWallStreet.com has some advice on how to do so, by using a Buddhist technique.
Kathleen Burns Kingsbury writes for the publication that The Wise Mind Theory explains that humans have two ways of thinking – “rational thought and emotional thought.” She notes that rational thought is based on the intellect, while emotional thought is based on feelings. “The intersection of the two is called the Wise Mind,” she notes.
The idea behind the theory is that the best decisions are made when both ways of thinking are taken into account. Kingsbury recommends that you tap into it with your clients this way:
“Draw two large, overlapping circles on a blank piece of paper,” she says. Name one “emotional mind” and the other “rational mind.” Color the area that intersects with the circles and call it the Wise Mind. Then explain the Wise Mind theory to your clients, and ask them to explain their financial thinking, and how they would classify their thoughts.
Finally, come up with an analysis using this Wise Mind theory. “Ask how her current thinking
helps her deal with her financial dilemma and how it impedes her,” Kingsbury says, and then “ask your client what would need to change to tap into her Wise Mind.” After doing so, they should be thinking more clearly.
Written by Lisa Swan