Many people assume that simply having more money means they will be happier. Although it certainly helps in terms of life’s comforts, it’s important to have a purpose when you are building your wealth. When money has meaning, you will enjoy life experiences, security and freedom. Let’s look at how you can align your money with what matters the most.
“The unexamined life is not worth living.”
Socrates
Balancing short-term goals with long-term impact
Goal setting plays an important part when you are looking to align your money with your personal values. You might have short-term goals for enjoyment, which could include travel or buying a caravan. You might then have mid-term goals such as saving enough to fund your child’s education. However, the amount you spend today could have a long-term impact on your finances. So, it’s important to set meaningful and practical goals to work towards.
Many people want to enjoy their money, while building their wealth for future generations or to give to charitable causes. The key is to create a balance between your short-term goals, such as travel and hobbies, and the long-term impact of creating a legacy or philanthropy. And this is why values play such a large part in aligning your purpose with your financial goals. But how do determine your purpose? Start by considering meaningful activities.
Finding your purpose
When we begin working with a new client, the first thing we will do is to spend time talking to them about what really matters to them. We wouldn’t recommend any course of action before fully understanding our clients’ values, aims and aspirations.
Our financial planners are members of the Kinder Institute of Life Planning. The Kinder method focuses on the individual and their goals before considering wealth or creating a plan. This is a very different approach to standard financial advisors, who tend to prioritise figures and investment returns over personal goals.
When trying to understand what you want from life, we would ask you the following questions:
- “If you had more time or money, what would you do?”
- “What do you want to accomplish or attain so you will feel that you’ve had a life well-lived?”
- “What moves, touches, or inspires you?”
And then we’ll sit back and listen to your response. The Kinder Life Planning process is a great way to get to the root of what matters to you the most.
How to use financial planning in a meaningful way
Financial planning should support the life experiences you want to take part in, offering both the security and freedom to enjoy such events. An increased level of wealth will only allow you to enjoy a fulfilling life as long as you have aligned your financial plan with your values. With some careful financial planning, you can focus on what truly matters, while delegating financial complexities to experienced financial planners.
A good financial plan will cover different factors. It considers your current income to support your existing lifestyle, as well as your future income to support you in retirement. As life has a habit of bringing us the unexpected, it takes into account “what if” scenarios and big life events. Nobody knows what the future holds, so your plan should include a financial buffer in case of an emergency or unexpected loss of income.
One size does not fit all, so your financial plan should be tailored to your personal circumstances and set of goals. Remember, having more money isn’t the end goal! It’s about creating a fulfilled life that you can enjoy today and in the future.
“You’ve worked hard to build your wealth; now it’s time to make it work for you”
Charles Schwab
Holistic financial planning, Nottingham
By delegating your financial complexities to a financial planner, you can focus on what truly matters to you in life. You will also be able to live your life to its fullest. A financial plan that’s aligned to your values will provide financial security and a happier existence in the present and future. You’ll be able to plan every aspect of your life with more certainty and clarity.
At Balance: Wealth Planning, our financial planners will work closely with you to help you determine your values and goals. Our approach goes beyond standard investments and savings advice. Instead, we offer a holistic and innovative approach to financial planning that considers your aims and aspirations, as well as your everyday living needs.
Do you need to assess whether your money will help you achieve your ideal lifestyle? Get in touch with our financial planning team to book a consultation.
Sources:
(Past articles and main website)
