Derek Hagen, CFA, CFP®, FBS®, CFT™
“The quality of our decisions is determined by the quality of the questions we ask.” -Tony Robbins
Imagine sitting at a coffee shop, talking about daily life with a friend. Usually, your friend asks, “How was your day?” Today is different. Today, your friend asks, “What did you learn today?”
That slight shift turns an ordinary conversation into an opportunity for reflection and growth.
The right question can transform a simple chat into a catalyst for personal insight.
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Understanding the Two Types of Questions
In our daily conversations, we often use two types of questions: open-ended and closed-ended.
Open-ended questions are questions that invite exploration. When you ask, “What are your thoughts on your ideal vacation?” you encourage the other person to share details, dreams, and even hidden concerns. Open-ended questions broaden the conversation and let ideas flow naturally.
Closed questions, like “Do you plan to retire at 65?” demand a quick, focused answer—often a yes or no, or a simple fact. They are ideal for confirming details and steering the conversation when clarity is needed.
While open-ended questions help uncover deeper insights, closed-ended questions are essential for honing in on specifics. The key is not to choose one exclusively but to use them both, tailoring your questions to the flow of the conversation and the needs of the moment.
The Benefits of Asking Better Questions
The power of the right question isn’t just theoretical—it has real-life benefits. Think about planning for your future: Whether it’s about retirement, budgeting, or personal growth, the questions you ask can open doors or close them.
When you use a closed question, like “Do you feel confident about your plan?” you get a concise answer that helps you understand where you stand. This clarity is invaluable in financial and life planning, where specifics matter.
Conversely, when you ask an open-ended question such as “What does your ideal financial future look like?” you invite a broader discussion. Clients and friends can share not just numbers, but aspirations, values, and even fears. This richer context empowers you to make decisions that align with your true goals.
Using the right blend of questions helps create a conversation that is both focused and expansive. A well-placed closed question can steer a conversation toward actionable details, while an open-ended question can keep it creative and insightful. It’s like having the perfect toolkit for every conversation—ensuring that each discussion leads to better decisions and deeper connections.
Every conversation you have—whether with a friend, a partner, or a financial advisor—offers an opportunity to learn and grow. By choosing your questions wisely, you create space for honest dialogue, deeper understanding, and better decisions.
Want to Learn More?
Money Quotient trains financial professionals in the True Wealth process and helps them implement the concepts into their practices. The first step is to learn about the Fundamentals of True Wealth Planning.
This post originally appeared on Meaningful Money.