How Your Money Mindset Impacts Financial Success

By Goldman Sachs Personal Financial Management

Joe Duran, Head of Goldman Sachs Personal Financial Management (PFM), recently spoke on The goop Podcast to share his thoughts on ways to make improved financial choices by understanding your attitude toward money.

Listen to goop’s podcast: Examining Your MoneyMind

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During the interview, Joe explained how the financial challenges he faced early in life informed his attitude toward money. That was important to his success as an entrepreneur and head of household because understanding your emotional relationship with money—namely your predisposition toward how you think about spending, saving and planning—can help you make clearer, more informed choices that bring you closer to your financial goals. This behavioral mindset for financial decision-making, which PFM calls your “MoneyMind®”, may be a helpful key to building a truly personalized financial strategy.


Types of MoneyMinds

There are three types of MoneyMinds. One is typically dominant, and it’s important to strike the right balance among all three:

  1. Protection—If this is your dominant mindset, you tend to be responsible with money and are primarily driven by security. No matter how much you save, you may never feel you have enough.
  2. Happiness—If this is your dominant mindset, you’re primarily driven by a desire to seek immediate gratification.
  3. Commitment—If you have this MoneyMind, you focus on using money to take care of others you love and are primarily driven by a desire to help them, and might not sufficiently voice your own needs.

Take our short quiz to discover your MoneyMind.

Understanding your MoneyMind is important, but there are still many things we can’t control, such as inflation and interest rates, so don’t spend a lot of time obsessing over them. Instead, focus on what you can control like how much you save and invest on a regular basis, spending choices and major timing decisions such as buying a house. For example, over-saving could actually detract from the enjoyment and fulfillment you feel from living life today. Alternatively, if you continually put off investing to avoid risk, your portfolio may fail to generate the potential returns you’ll need to live more of the life you have in mind for tomorrow.

In short, think about your decisions in a long-term, disciplined manner rather than in a reactive, impulsive way. Realize that making financial choices entails tradeoffs. Money is fuel for funding your goals. So, it’s important to clearly understand your goals and why you work, and align these goals so that they are true to what matters most to you.

Next Steps

Connect with one of our personal financial advisors near you to discover how they could help you and any others in your household understand your MoneyMind(s) to make more balanced financial choices, and create a financial plan built around your mindset(s), priorities, values and investing preferences to help maximize your return on life, today and tomorrow.

United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) is a registered investment adviser, an affiliate of Goldman Sachs & Co. LLC (“GS&Co.”), and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization. Advisory services are offered through United Capital Financial Advisers, LLC and brokerage services are offered through GS&Co., member FINRA/SIPC. How we are compensated by you may change over time and will depend on various factors. Please ask questions and refer to GS PFM’s publicly available Form ADV where applicable.

GS PFM makes recommendations based on the specific needs and circumstances of each client. Clients should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing piece to make decisions. Investing involves risk, and investments may lose value. There are no investment strategies that guarantee a profit or protect against loss. GS PFM does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances.

The information contained herein is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. The material is based upon information which we consider reliable, but we do not represent that such information is accurate or complete, and it should not be relied upon as such. The information, data, analyses, and opinions contained herein include confidential and proprietary portfolio information of GS PFM, may not be copied or redistributed for noncommercial or personal purpose without GS PFM’s expressed permission.

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In July 2019, Goldman Sachs acquired United Capital Financial Advisers, LLC (“United Capital”). Not all services, products, tools and practices described apply or are available to all clients. Products and services obtained by United Capital clients prior to the Goldman Sachs acquisition were subject to different standards of review and diligence. Before agreeing to engage in services with GS PFM, you should consult with your advisor about the particular services, products, tools, and practices that will be applied to your relationship with GS PFM.

© 2022 United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management. All Rights Reserved.

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ABOUT THE AUTHOR

Goldman Sachs Personal Financial Management

United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) is a registered investment adviser and an affiliate of Goldman Sachs & Co. LLC and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization.

The information contained herein is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. GS PFM does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances. Please contact your financial adviser with questions about your specific needs and circumstances.

Information and opinions expressed by individuals other than GS PFM employees do not necessarily reflect the view of GS PFM. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.

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