What Is Financial Empathy?

In today's world of Instagram and the low-key brag, resentment can build up between friends, colleagues, and partners when people show off their lifestyle.

But I want to make sure that you don't take the high road of simply dismissing their actions as being showoffy and just bragging about their lives.

I want to introduce the importance of financial empathy whereby you put yourself in another person's position to see actions and decisions from their point of view so that you can connect and understand them.

Empathy is better known within the realms of religion and politics and less so finances and wealth.

I want to reduce the barriers between people and build bridges of understanding, trust, and transparency over one of the most sensitive topics in modern human culture; money.

Here are a couple tips to build these bridges with love and care and not being noisy and condescending.

1. Who Do You Care About. This pointer focuses on the issue that your care and attention is limited and that you need to prioritise. When it comes to financial empathy, there is no point being worrying about colleagues and distant friends but on those that make up your close circle. Build a strong financial relationship with them so as to make money a understood topic and your overall relationship stronger.
   

2. Their Financial Situation. When talking about finances, it is imperative to make it a safe and non-judgemental atmosphere so as to remove bad feeling and keeping it constructive. Salaries, savings, and investments can be a taboo topic but just remember to remove the social shackles that stop most from discussing money. Take a deep breath, and talk.
   

3. What Are Their Financial Goals. After setting both of your situation for each other to see fully, now it is time to talk about your goals. Talking about goals, short and long, can reveal a lot about a person and it can bring an extra dimension to the relationship. Being transparent leaves open the space for construction solutions to be suggested on a variety of different topics such as insurance or property buying. Here are my top 3 ways to be more financially empathetic through transparent discussion and non-judgmental conversations.