 Quick show of hands. How many of you are social entrepreneurs out there or you work for a social enterprise? Great, and how many of you are? Investors or you're with an NGO. You're somehow controlling capital on the flow of capital And how many of you are academia or impact measurement or media or something else? Okay, cool I'm gonna suggest that the reason we're all here is to have a lot more impact than we've had in the past Am I right about that? Is that right? And yet it seems so difficult to do like whether we're part of a family You know trying to all get on the same page and have the same strategy or Working in the social enterprise together and trying to also have one strategy Somehow it seems to come down to more than just the nuts and bolts more than just business or spending and investing and giving decisions It's like something else is driving us sound familiar to anybody so for me I I Spent a lot of time thinking about this and Realizing that this has lots more to do with our money psychology than it does those nuts and bolts And how do I know this? Well, it starts here where I'm 13 years old and that's my mom behind me and She had just gone through her second divorce and that divorce was Absolutely shattering to me. I I felt in some ways like my stepdad had left me even more than he left my mom and it led to years and then decades of Personal growth work and introspection and soul searching and then there's dad actually. There's three dads So this is biological dad. He ran a furniture factory. This is stepdad Who was a jewelry manufacturer and this is dad number three a psychotherapist? So I had this kind of existential dilemma on the one hand. I had introspection and self-awareness as the path to Liberation or happiness or wholeness and on the other hand I had entrepreneurship and business and make a lot of money and that'll make you happy and so I Did what anyone in their mid-20s with an existential dilemma would do I packed up my mullet That's the top red arrow in this picture and my Ghanaian beads bought at an African trimming festival That's the bottom red arrow and I headed off to India I had money in the meaning of life in my backpack by Jacob Needleman and I did a whole bunch of journaling and thinking and I did a whole bunch of yoga and I was basically trying to decide is it money or is it psychology like which one is going to be my key and Punchline it's not an either or it's both So I came back to the States and I started a company Abacus that incorporates financial advice and behavioral advice and the really cool thing the very special thing about being a financial planner is People tell us things that they've never told anyone else. I Remember the multi-millionaire inheritor who confided in me that he stayed up till two or three in the morning sometimes Reconciling his quicken file down to the penny to figure out where the spending was going. I Remembered the teacher who despite her decades of social service Felt guilty about calling the state teachers retirement system and saying I Want to collect on my rightful share of my deceased partner's pension. So I did it for her and I remember a client who was the widow of a very early employee of Oracle Whose balance sheet was 98% Oracle stock and nothing against Oracle. Sorry Larry if you're listening, but That was too much diverse too much concentration and she knew it and yet it was it was too hard for her to bring herself to diversify because of the guilt and Other feelings that the untimely death of her ex-husband had caused So what I realized is like people were making financial decisions are not making them not based on their current financial situation but based on like these biases and tendencies that seemed to come from years ago ages ago and So in consultation with Psychologists and others I developed eight financial archetypes So I know you're all going oh great another personality typing system, and I have that same reaction usually What I'd like to say about this is number one their fluid and there's no hierarchy. There aren't better and worse archetypes We change over time we're usually a combination of one or two or three of them and I've certainly changed a lot in the 15 years or so since I developed these But what's common amongst all eight is that they all have a positive intention Which as you're going to see in a few minutes is the key to creating the cohesion that we want to have in our family systems our organizations our nonprofits they often have kind of Painful emotional states that either are present or we're using our archetypal behavior to avoid feeling We sometimes have a distorted money message almost like a mantra that plays in our head over and over again unconsciously and because of that we can create a curative money message that allows us to sort of reverse that programming So I'm going to show you the eight money types right now And I ask you to pay attention to your body and see if like you contract as you read any of the you know Any of them are like I don't want to be that one or my sister's that one or I love that one So here they are I'm going to read them off to you quickly and then we're going to go into them in more detail So they are the saver the pleasure seeker the star the idealist the empire builder the caretaker the innocent and the guardian So just from hearing these names just raise your hand if like you had some reaction you had like a or yeah Anything yeah, most of you And that's that's true of all of us. We have these biases That's the point of this whole talk is that we have money biases that we're often unaware of and When we get into a financial Conversation or transaction with someone we're almost always unaware of what their archetypal bias might be and we generally Sabotage whatever it is we're trying to accomplish together because we don't validate the positive intention of their archetype I'll say more about that in a minute, but first I'm going to give you examples of these eight archetypes And I'm not allowed to use my clients because of sec confidentiality rules, so I'm going to use my family with their permission and It's kind of only fair that I start with myself so here's me at ten years old and I am or certainly was a saver first and foremost back then I remember the day my grandfather took me down to home savings of America and Santa Monica and He gave some money to the teller and she handed me back one of those paper Passbooks savings passbooks raise your hand if you are old enough to remember paper savings passbooks. Well, it's more hands Than I thought I'm like they're all gonna be millennials and no one will know So my name's at the top the balance is in the right column and I have this like rush of goosebumps and adrenaline like I love saving I want to save more. This is incredible but you know that didn't work so well when I was 23 and in $5,000 of credit card debt and the business transaction I'd been banking on to pay off the debt and get me three months of runway fell through then the saver collapses So savers aim for Growth future security We're trying to avoid loss. We're trying to avoid, you know depletion declining balances in an impact sort of lens We're gonna be drawn to things that are savings related financial inclusion fintech poverty alleviation and Generally, I'd say we're drawn to business or commercial Solutions more than nonprofit solutions if we're drawn to nonprofit We want to see like okay, how much follow-on grant capital could come or if I do a first loss Will there be a bunch of other, you know philanthropic money that will flow after so it's very future oriented Next is the Pleasure Seeker represented by my goddaughter Alexa. She's 28 and Alexa has Amazing gifts as a Pleasure Seeker a few weeks ago. I called her and I said Ali Can you help me with my wardrobe and she's like, yeah, yeah when Saturday morning? Let's go and in 90 minutes this young woman was able to like do more to my wardrobe than I've done in three or five years And she enjoyed every second of it You guys are looking at me like what did she do? So Pleasure Seekers if they're awesome, right? So I've had a lot of judgment bias against Pleasure Seekers most of my life now. I'm a pretty good one But Pleasure Seekers seek sensory fulfillment in the here and now they generally want kind of immediacy immediate reaction And So from an impact perspective, they are likely to want tangible things They might invest in food or natural conservation or textiles They might be you know more drawn to Shorter-term investments things where they're gonna see immediate impact rather than like the saver who's willing to wait a long time Next is the star. This is my older son Caden. He's now 19 off in Washington Studying to become a diplomat in the Middle East where he hopes to be very vocal and influential on conflict resolution issues And other issues, which is what stars love stars want to lead campaigns They want to be vocal most of us up here on stage have to have some star in us or us We probably wouldn't make it up here So stars lead by example You know that the sort of less The poorer functioning version of the star is where we're just trying to fill up kind of an emptiness a hole of Wanting to be recognized or get a bunch of likes on social media But the positive aspect in impact is if you've really got a good idea or good business or a good nonprofit Then you need some star power. You've got to attract other people to your movement and that's what stars do Next is the idealist represented by dad number three psychotherapist So Rob has been a humanitarian most of his life recently has been he wrote a book to transform mental health care in the US He's donated a bunch of money for cataract surgeries in Nepal He's trying to do a housing thing that will affect many many very low-income people across the Southwest So idealists like you know, their heart is generally part of it but it's really about massive systemic change like they they're aiming for a big change to things and Usually governments corporations, you know, big establishment institutions are not to be trusted by idealists So the painful emotions like where idealists can get stuck is if they're just cynical and you know Just skeptical about everything So if they're not that way then idealists are amazing because they paint a vision of a future that that you want to follow So like an idealist star combination is generally going to be an amazing leader of an organization Idealists will often avoid Traditional investments publicly traded investments because of the mistrust of corporations government, etc And aim for more kind of local small-scale tangible investments The Empire Builder, this is my wife, Britta So Britta's been a childbirth educator for 20 years and most recently has written a book on childbirth and has you know thousands and thousands of social media followers that she's trying to get up before the book actually comes out in January and You know, so but what what's the thing about the Empire Builder? They've had some impact, but now they really want to expand that impact They want it to be much bigger larger than them alone. Sometimes they're aiming for legacy and this doesn't have to be for profit It could be nonprofit. It could be government, but the key is like larger than life larger than just myself So the negative side of the Empire Builder is they can be workaholics. They can be domineering. I'm not saying anything about my wife And as a financial advisor what I often see with Empire Builders is balance sheets that are very concentrated Usually in the industry or company that they know best So let's move from there to my brother-in-law Dennis today's his birthday happy birthday Dennis if you're watching this stream So Dennis has a young family that obviously requires caretaking but for 19 years He's also organized Us as a family and and hundreds of individuals and dozens of businesses to go down to skid row And downtown LA and hand out thousands of hygiene kits and sleeping bags and warm coats to the homeless there So caretakers lead with empathy Generosity caretaking Almost always are going to be drawn to philanthropy first or at least impact first if it's on the investment side concessionary investing or grants And the painful emotions that caretaker caretakers can feel or be trying to avoid our helplessness guilt Maybe a sense of martyrdom in some families But I just love Combining caretakers with other archetypes because it brings the heart into the conversation So imagine for a minute that you're a caretaker and your family member is a saver you're you're gonna have to speak some language to them about preservation of capital for the future and bigger impact in the future or Follow on capital if we can make this grant right now Rather than just sort of beating the drum that the caretaker beats alone, which is gonna push the saver away Next is the innocent just two more the innocent is my mom So innocence have a lot of faith and trust and optimism, but they also Generally don't like the details now in all fairness to my mom. She was a single mom raised me and my sister through adolescence, you know With that took care of all the details. She needed to take care of but now that she doesn't need to she's got a bookkeeper and a financial Advisor and you can see this like visible sigh of relief when one of them does something for her that she didn't have to deal with So innocence have all this like trust and optimism they you know Sort of no deal and no person looks untrustworthy to them on the front end So you really want to combine them with someone who's got that kind of skeptical lens They prefer simplicity to complexity in terms of impact reporting They're gonna want narrative stories or videos or things like that over quantitative data And at the opposite end of the innocent is the guardian So the guardian is alert and careful and prudent This is my stepfather-in-law Ben and my favorite memory of Ben is sitting in his little 8x8 office down the peninsula surrounded by four big four drawer file cabinets and He's working on the general ledger and tax returns of his family owned business and he's you know staying up to 11 at night doing this stuff And I knew he didn't have to I knew he could afford to hire someone to do it but he just was you know caught into doing it himself and Now he's transferred to his adult children and has professionals that do a lot of the work But he's still frugal and fastidious So guardians want high due diligence They want something to have looked at the worst-case scenario if you're an entrepreneur and you're an empire-builder and your lead investor is a guardian You better have thought of the worst-case scenarios and you better Outline all the details of what that could look like to your guardian investor if they don't feel like you've done it Then they're gonna feel like they have to do it for you So the eight financial archetypes up here again. How many of you felt some resonance with one or more of them you ready? Yeah, cool So what I invite you to do is tomorrow the 11 30 and firehouse I'm gonna be leading a session that's an hour long where we'll go much more experiential than this So we'll actually you'll take the five-minute quiz that's listed up here abacuswealth.com Ford slash so cap and then we're gonna organize into groups and we're gonna actually work on how do we communicate with our Opposites how do we actually create this cohesion of strategies so that we can get on the same page with our family members our Co-workers our grantees our grand tours etc. Etc. So with that I wish you well And I hope that whatever your financial archetypes are you can all achieve the impact you dream of thank you