Four Tips for Mastering a Financial Security Mindset

When I was 18, my mom gave me a sum of money she had been investing for me since I was around 4 or 5 years old. For most, it wouldn’t have seemed like much, but as a college-bound teenager, I felt rich.

By the end of my freshman year, I had spent every penny on exactly the things my mom had warned me not to. She was deeply disappointed, and while it took me a long time to reflect on the experience, that moment fundamentally shaped my mindset toward money and spending.

This article is written by John Savarino, an Investment Adviser Representative with Rooted Wealth Advisors, Inc. He has experience in wealth management and tax planning and brings a transparent and client-first approach to retirement planning.

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It taught me that financial security isn’t just about how much money you have; it’s about how you manage it and the discipline you apply to it.

The psychology of money and emotional investing

Emotions are often the biggest threat to financial security. Fear and greed are powerful drivers, pushing investors to buy high when markets are soaring and sell low when panic sets in. This cycle can be devastating to long-term wealth.

Behavioral finance studies have shown time and again that making investment decisions based on short-term emotions rather than long-term strategy leads to underperformance.

I’ve always been a fairly analytical person, relying on data and historical trends to guide my decisions. Markets have cycles, and statistics overwhelmingly show that staying calm and trusting your investment strategy is the best approach.

This mindset has helped me avoid the knee-jerk reactions that can derail even the most well-thought-out financial plans.

Helping clients find clarity and control

There is often a negative perception of financial advisers — that we’re just looking to profit from someone else’s hard-earned money. I’ve heard it all. But the reality is that many advisers do care about their clients and their financial well-being. One client story in particular stands out to me.

I met with a woman who had gone through a messy divorce several years prior. By the time she came to me, she had spent hundreds of thousands of dollars and was on the verge of financial ruin.

It wasn’t that she didn’t understand money; she just needed someone to help guide her and provide a structured plan. She needed an adviser she could trust, someone she felt comfortable sharing her fears and challenges with.

Two years later, her financial trajectory has completely turned around. She is back on track and now on the path to retirement.

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Seeing transformations like this is why I do what I do. Whether it’s helping a generationally wealthy family navigate complex tax and estate planning or guiding someone just beginning their financial journey, the goal remains the same: to provide clarity, confidence and control over their financial future.

A simple yet powerful investment philosophy

The key to financial security isn’t chasing the next big stock or reacting to every market movement — it’s having a plan and sticking to it. My investment philosophy is simple: focus on low-cost index fund ETFs.

While I do own individual stocks, they don’t represent 100% of my portfolio. Diversification, cost-efficiency and a long-term approach are what drive sustainable success.

How to cultivate a secure financial mindset:

• Trust the data. History shows that markets reward patience. Rather than making impulsive decisions based on short-term market fluctuations, focus on long-term trends and fundamentals.
• Have a strategy. Set a plan and commit to it. A well-structured financial plan provides a roadmap that helps you stay on course, even in turbulent times.
• Seek guidance. Whether from an adviser or a trusted mentor, having an external perspective can prevent emotional decision-making.
• Learn from mistakes. Just as I learned from my experience at 18, financial security is a journey. Everyone makes mistakes, but the key is to adjust, learn and move forward with a smarter approach.

Achieving financial security isn’t just about making money; it’s about mastering your mindset. When you focus on discipline, strategy and long-term thinking, you create a foundation that withstands market swings and financial uncertainties. The goal isn’t just to grow wealth but to do so in a way that provides lasting peace of mind.

This article is not tax or legal advice. Consult with a qualified professional before implementing any strategies discussed.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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