How to Think About Financial Life Planning Goals
It’s that time of year when people are working hard to keep their New Year’s goals. In our last post titled How to Set Realistic and Attainable Financial Life Planning Goals, we suggested an alternative to the traditional SMART framework so that you’ll increase the likelihood of meeting your goals. Here I want to focus on the “meaningful” element of the new SMART framework in the context of financial goals.
Do you remember seeing this commercial about retirement goals and people carrying around a big-ass number under their arms all over town and even sleeping with it?
I actually think it was a clever way to help people visualize the idea of having enough money to retire comfortably. The problem with the commercial is it boils retirement planning down to just one number, which is what the financial industry wants you to believe is important. But it’s not just about that number, or any number really.
Instead, financial goals are about living life intentionally. Let’s take education planning for your kids, for example. The goal shouldn’t be: “We have to save $200 a month for the next 15 years and earn a 10% return.” Where’s the meaning in that? How is that in any way an expression of your life’s purpose? Does it say you gave your kids the best education you possibly could? Unless your goal was to just save enough to reach a big arbitrary number, it doesn’t.
The goal should be more like: “We want our kids to have the education and experiences they need to create their own path to a purposeful life.” Now that’s meaningful. Hopefully an idea like that will light a fire in you to do what’s necessary to reach that goal.
Will achieving that goal involve numbers? Absolutely. But you’ll also realize that providing a proper education goes way beyond numbers. It also involves spending enough time with your kids so that you can teach them what matters like being disciplined, having curiosity and generally being a good human.
It also involves opening them up to experiences that will knock them down so that they can learn how to get back up. It requires that they learn how to take care of their physical and mental health. It requires that you guide them as they decide on a major and a fulfilling career. Are you starting to see that there’s so much more to education planning than just the numbers?
Maybe the kids’ college education example doesn’t apply to you. Say you want to travel more or buy a house. Whatever it is, creating an intentional financial life plan and investment management strategy can help you achieve those short-term goals while positioning you for the future.
Instead of trying to turn your goal into the “right” number, find the true meaning behind the goal by reflecting on how it will help you live your purpose.
If you’re ready to go beyond the random arbitrary numbers, click below to schedule a free intro call.
And click here to learn more about our personalized discovery process, which allows us to get to know you first, before helping you create a financial life plan that helps you realize your long-term goals while living the life you’ve always wanted.
