Financial Intelligence: How to Make Smart, Values-Based Decisions with Your Money and Your Life

by Doug Lennick

Can you envision a healthy financial life but have old, hard to break habits that prevent it from taking root? You are not alone. It turns out our brains are hard-wired to make poor financial and life decisions. Financial Intelligence helps you break the cycle of habitual and emotional decision-making that hard-wiring automatically sparks when faced with emotionally charged events. Beginning with your principles, values, and beliefs, Financial Intelligence offers a concrete guide to help you achieve better results. Doug Lennick provides a simple and clear four-step method, known as the 4Rs, for making wise financial and life decisions based on your core values. When you find yourself in a highly charged event, such as the Dow Jones plummeting, rash decisions often follow like selling out your entire stock portfolio at record lows! Recognizing your automatic mental and physical responses is half the battle toward taking control of the situation. After reflecting on your values and your circumstances (while accounting for your inherent biases), you can reframe a more realistic interpretation of what is happening and what lies ahead. This allows you to respond to a critical situation with an understanding of it and foresight about which current actions will best serve your future goals. Accepting the certainty of uncertainty means you must prepare for the ups and downs of life so when you are thrown a curve ball you are confident you have the foundation in place to act wisely. Financial Intelligence gives you the tools to build this foundation to be able to step back from a tense situation, return to your core values, and transition to an emotional state where decisions are based on thoughtful analysis of what will bring you the greatest long-term success and fulfillment in life.

Genres: Business, Finance, Nonfiction, Economics

175 pages, Hardcover

First published April 20, 2010

Reviews

[Fred Forbes · Rating 4 out of 5]

I read this as part of a course based around the concepts of this book. As a practicing financial professional I found it a bit glib, simplistic, and repetitive. However, the central idea that your your financial decisions should firmly reflect your value system is of prime importance to the process. The 4R process for decisions - recognize, reflect, reframe and respond will be a helpful framework for many for improved decision making. I feel the book is probably geared more to those considering the financial planning process as opposed to those who are practicing it. Still, a helpful book all around.

[John · Rating 3 out of 5]

I read this book as a part of a continuing education curriculum to qualify for the Behavioral Financial Advisor (BFA) designation. Also, I work for the same company that the author was senior vice president of the adviser group the first 17 years of my career.

It seems to me, that it is more written for individual investors and potential clients, rather than current financial professionals. That being said, it does delve into, on a limited level, some of the font processes that people mistakenly use while making financial decisions.

Taken from the context of the end-user/reader being the general public, this book has merits and some very solid points. Further, it gives a little bit of a blueprint/playbook for the average person to use regarding the process of making financial decisions.

For the seasoned financial professional, other than providing a small window to implement minor changes in the advisors’ process to include this decision making process, there is not a tremendously deep amount of information to substantiate the conclusions in the book. In that area, I was a tad disappointed. It’s not to say that a simplified system is in adequate or insufficient, but from a professional/academic perspective it did leave me a bit wanting.

[Mary · Rating 5 out of 5]

I'm not going to lie, I have every reason to be biased about this book. Although I'm not the author, as the editor, I'm very personally invested in its success. But I will say that I think it's a great, common-sense guide to making better financial decisions. I'll say that even though I've read the book at least twice and get my own free copy, I'm buying copies for people I care about. I'll say that the other people who worked on this book have also said that it's changed the way they see financial decision-making and decision-making in general, and people who don't have to read the books (like the designer) are reading it and getting a lot out of the experience. Buy it, read it--- see for yourself. You won't be sorry.

[Ali Noorani · Rating 1 out of 5]

I still cannot believe this shocking disaster of a book. I have never been cheated on like this before. This book is a total scam. Six chapters in, all I’ve heard were a few famous cliche phrases like you must think like a rich person or make money work for you, with absolutely no guidance on how to do so. Then you will be told you should learn accounting to become financially intelligent. And chapter 5 is a random shi**y glossary of accounting terms! with absolutely no relevance or educational value. Imagine listening to a fast robotic audio reading of a dictionary. That’s fun and educational, right? I left it unfinished after chapter 6 (with about five minutes of the book left).
By the way, the reading is no better. It sounds like a sped-up robotic reading that makes you fall asleep. It has no character or intonation. I wish I had lost or burned my 10 dollars rather than funding a scam.
I have no alternative but to believe the good ratings and reviews are rigged.

[Carson Woodell · Rating 5 out of 5]

Good shit for behavioral finance, good to reference for the future

[James · Rating 4 out of 5]

As a financial advisor, I've been exposed to bits and pieces of Doug Lennick's ideas and perspectives over the last several years. 'Financial Intelligence' crossed my path at the perfect time - the bits and pieces were put together in one dynamic whole that absolutely resonated with me. I had one of those experiences where you can't believe you didn't "connect the dots" before. I can't stop thinking about the implications (good ones, mind you) of these ideas for myself and the clients I serve. 'Financial Intelligence' discusses decision-making (financial and otherwise) in a remarkably uncomplicated framework that promotes making smart decisions that actually align with what you value most in life. Not too hard, right? Doug does a masterful job staying concise while building the entire foundation needed to develop true Financial Intelligence. Highly recommended!

[Dwayne Roberts · Rating 3 out of 5]

I thought this book was pretty good, especially the chapters that relate to the author's four R's: Recognizing, Reflecting, Reframing, and Responding. They're appropriate for making good financial (and other) decisions; for not acting on emotion, but after reasoning.

What discussion there was about the source and nature of emotions and their proper role was a bit loose. Likewise, values and virtues.

The last chapter tended to promote his own value system, perhaps with the belief that everyone holds his values (which, no doubt, many people do).

Overall, though, it's worth reading and considering, and perhaps putting into practice.

[grayson · Rating 4 out of 5]

Well done. I initially expected this to be a substantially dry read about finances, but Doug Lennick's financial advice is on point. Using lots of personal examples and case studies, he really hones in on the idea of preparing for the certainty of uncertainty, making financial decisions (present and future) based on your personal values, and the 4Rs of financial intellience.

The book also contains lots of really helpful, thought-provoking exercises (everything from deep breathing to questions to ask when you're on the search for a financial advisor that suits your needs) that really encourage you to take some time out of your day for some serious introspection and self-assessment.

[Joseph · Rating 5 out of 5]

I heard the author speak on multiple occasions and finally bought Financial Intelligence: How to Make Smart, Values-Based Decisions with Your Money and Your Life. I am a Financial Planner and found the topic in line with the approach I use in creating a financial plan. The topics and methods can be used for life in general. It is an easy, quick read with some great resources inside.

[Heather Condiff · Rating 5 out of 5]

What a fantastic book! Even if you do have good ideas and thoughts on finances this book really helps put priorities and how finances fit into them in a great perspective! Much of it was common sense but it was put into a format that REALLY helps you make wise decisions with money and investing and setting yourself up for financial independence. What a great read!