If clients are to increase their likelihood of becoming wealthy, they have to understand and change how they behave with respect to areas that are, perhaps, a little more personal.
Clients that focus intently on what others buy and consistently want the latest and greatest in possessions (such as technology or accessories) are less likely to build wealth over time. Social Indifference predicts net worth regardless of age, income, or how much wealth one inherits or is given. Like the prodigious accumulators of wealth in The Millionaire Next Door, those high on Social Indifference (i.e., those uninterested in what others buy or trends in general) have a higher likelihood of building wealth.
Coaching in this particular area is tricky but objective data might be a way to open up the conversation. Likewise, for clients who do not think they are focused on the buying patterns of others, demonstrating their Social Indifference scores relative to others may highlight the need for improvement in this area.
Of course, if as an advisor, you are engrossed in social trends and the buying behaviors of others, coaching your clients in this area will be even more challenging.
Adapted from Data Points’ latest white paper: Financial Behaviors & Wealth Potential.