How to Shape a Life of Money and Meaning

wealth

Happiness & Wealth

How does money figure into a happy life? Behavioral finance expert Brian Portnoy delivers an inspired answer based on the idea that wealth, truly defined, is funded contentment. It is the ability to underwrite a meaningful life.

His latest work, The Geometry of Wealth , bridges the philosophical and practical gap in managing money in our lives.

 

“Money does buy more happiness when spent wisely, especially when directed toward experiences, others, and time.” -Brian Portnoy

 

Millions are Not Ready for Retirement

You point out that millions of Americans have not saved a dime for retirement. Why is this? Will this eventually cause a crisis or is this typical and then people catch up?

The lack of retirement preparedness stems from a combination of opportunity and mindset. In the context of real wages for many Americans having not risen in more than a generation, many are barely able to make ends meet, let alone build a nest egg. Beyond that, financial illiteracy is a major problem. As a society we don’t take seriously the need to understand the many facets of saving, spending, and investing. Further, humans are generally wired with biases that undermine smart money decisions. This mix of factors is at the root of the looming retirement crisis in America. Far too many have saved far too little, and there are no obvious solutions that don’t involve quite painful decisions.

 

“Nothing is enough for the man to whom enough is too little.” -Epictetus

 

The Importance of Purpose

Your model is in three parts: purpose to priorities to tactics. Part one is purpose, which is not a typical starting point in many financial books. Talk about the importance of purpose in this context.

Let’s step back and ask, “What are we all trying to accomplish here?” I think an answer that mostly everyone would get behind is that we want to be happy; we want to lead a good life. Okay, fine, but how do you do that? It’s obviously a massive question, with countless angles from philosophy and religion and other domains. Money, for better or worse, is an inescapable part of the discussion. There are certain unavoidable practicalities of what we can afford and how those help to underwrite the lives we want to lead. By putting purpose first, by being thoughtful – not just once, but over time – about where we find joy, then we are much better able to have our financial decisions support that quest. This is the opposite of what many unfortunately do, which is let the desire for and experience with money determine what we do in life.

 

“True wealth is the ability to underwrite a meaningful life.” -Brian Portnoy

 

How is fulfillment and happiness related to financial well-being? Talk about the intersection of money and happiness.

19 Quotes About Money and Finance

money quotes

19 Quotes About Your Money

 

Many people I meet have a complex relationship with money. They may desire it, fear it, or even despise it. I’ve seen families torn apart by it; neighbors fight over it; and friendships lost by it. I’ve also seen the power of charitable giving where lives are transformed from it.

Money is partly a reflection, an illusion, and a relationship. Finance is equal parts numbers and emotion.

Here are some quotes to help us think about money:

 

“Money often costs too much.” –Ralph Waldo Emerson

 

“The stock market is a device for transferring money from the impatient to the patient.” –Warren Buffett

 

“A budget is telling your money where to go instead of wondering where it went.” –Dave Ramsey

 

“It’s not your salary that makes you rich, it’s your spending habits.” –Charles Jaffe

 

“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.” –James Frick

 

“Beware of little expenses; a small leak will sink a great ship.” –Benjamin Franklin

 

“If you want your income to grow, you too must grow.” –Idowu Koyenikan

 

“You will either tell your money what to do, or the lack of it will always manage you.” –Dave Ramsey

How to Increase Profits Through Gender-Balanced Leadership

The Power of Diversity

It’s not just the right thing to do.

Diversity is organizational rocket fuel. It’s better decision-making. It’s better results.

I’m always studying what works, what doesn’t, and the latest thinking in this area.

That’s why Melissa Greenwell’s new book, Money on the Table: How to Increase Profits Through Gender-Balanced Leadership, got my attention. Melissa is Executive Vice President and Chief Operating Officer of national retailer The Finish Line, Inc. Her new book utilizes current research and demonstrates that more women in management equals better financial performance.

I reached out to her to talk about her research and her perspective. Her views are intriguing and offer a view worthy of discussion and consideration.

 

Study: more women in a group increases problem-solving and decision-making.

 

The Case for Gender Diversity 

For those who aren’t up to date on the latest research, tell us why gender balance is good for organizations. What’s the case for gender diversity?

Hardwiring in the brain is different for men and women. The physical differences are associated with natural tendencies in thinking, communicating, and problem solving that are all needed in business. Men and women demonstrate these traits in varying degrees. Organizations that have traits from both genders will get the best questioning, debate, and idea generation resulting in healthier strategies and increased performance over those who don’t. Those are the organizations that will create the best products and services for their customers.

 

Fact: Public companies with more than 1 woman on the Board have higher returns.

 

Why do some resist it?

I don’t believe people resist it. I believe leaders don’t know what to do to change it. That’s the biggest reason I wrote the book – to provide some actionable advice as to what leaders can do to effect change.  Others have brought awareness and that’s a good first step. Now we need to start doing the things that will lead to more gender diversity in leadership positions.

 

Study: Companies with no gender balance on the board have lower market capitalization.

 

You say that you wrote the book mainly for men in power because they can change the ratio. And then you say some “get it” and some “think about it.” What’s the difference?

I wrote the book mainly for people in positions of power – anyone who is in a senior leadership role can effect change faster. At this time, the vast majority of those people are men.  Of the male leaders I interviewed, I found that there are two main groups: those who “get it” and have been taking steps for several years to have more women in leadership, and those who are “thinking about it” – that is, they acknowledge that women are important to their business but are struggling to find ways to have more of them in senior leadership.  The biggest difference between these two groups of leaders is that those who have greater gender balance in their organizations have taken some very deliberate steps to get them there. They take more time to seek candidates and they reach outside their known network to find female candidates. They tend to take more risks on up-and-coming talent within their organizations as well.

 

Reasons Companies Fail to Keep Women

It’s not only recruiting but also retention that is important to changing the ratio. What are some of the reasons organizations fail to keep women?

Some organizations still refuse to implement the flexibility it takes to keep female talent. They still view creating flexibility as making exceptions rather than viewing it as a competitive advantage. They are busy counting hours instead of measuring results. Those that continue to think that way will fall behind in the war for the best talent.

 

What’s unconscious gender bias and how do you recognize and deal with it?

Unconscious gender bias is continuing to hire people who are just like us (male or female) and not even thinking about the ramifications of doing so. Little to no thought is being given to examining the gender balance of the team or organization when this continues to happen. The only way for it to change is for the top leader to set the tone and lead by example. Everyone follows the lead of the CEO or President, which in itself is far more important than implementing awareness initiatives.

 

Steps for Building Gender-Based Leadership