Carlos Perez has been helping clients with their money for years. As a wealth advisor for Frost Bank, including branches in the northwest Houston area, his experience has taught him a great deal and his philosophies continue to help hundreds of people each week.
â€œI like to tell my clients that our president of Frost Investment Services Angela Holliday said, â€˜Begin with a plan.â€™
â€œWe actually have a campaign focused around the idea of having a positive mindset when it comes to financial planning,â€ Perez said.
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Perez said anyone wanting to change their financial habits in 2021 should look at these carefully and adjust accordingly.
1. Take the taboo out of money. â€œThat can mean talking to trusted individuals about your situation whether itâ€™s a financial advisor, a family member, or a close friend.â€ Perez said many people are shy, for good reasons, when talking about their personal finances, but everyone needs a little help and advice. He said it should come before a crisis develops.
2. Seek progress, not perfection. â€œTake gradual steps and that will bring gradual success to get the momentum going,â€ he said. â€œNo need for heroic moves, but itâ€™s more about staying disciplined.â€
3. Expect the unexpected. â€œChallenges are going to be a part of the process and itâ€™s incumbent to reflect on those experiences and adjust for the future with confidence.â€
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Those who implement these three habits, Perez says may see big benefits.
â€œOur research shows that adopting these three habits alone shows their financial health is likely to increase seven times over.â€ He said clients experience 145 fewer days of financial stress and theyâ€™re more likely to recover from financial setbacks including pandemic-related scares.
He also stresses the plan has to be specific to the individual or family.
â€œIssues that come to the surface are not the dollar-specific plans taken by most clients, but behavioral finance meaning what are their experiences with money, what they continue to be, and how do we change the way they see money and what they do with money. All of that revolves around emotions,â€ he said. Perez says itâ€™s important to hire someone with technical knowledge who can be outside of the emotional realm of how the money is tied to the client.
â€œIf you havenâ€™t been saving money, most people know they should, but why donâ€™t they?â€ Add a counselor to understand the behaviors.
â€œMoneyâ€™s not everything, but it ranks right up there with breathing,â€ he said jokingly. â€œEvery financial decision you make reverberates with everything else in your lifeâ€”health, happiness, legacy. For us to participate in that is a privilege, but we have to have a customer whoâ€™s willing to allow us to almost â€˜take overâ€™ and remove the emotion from the decisions,â€ he said.
â€œNobody cares how much we know until they know how much we care. Go to someone who cares and can give you that technical advice,â€ he said.