Many people don’t think of money as a tool.
So one of the first questions that I ask a new client when we sit down to begin the financial planning process is why is money important to you?
Watch the video below to learn how I view money as a tool, and how you can start using your wealth as a way to power your values.
Transcript of Video:
So one of the first questions that I ask a new client when we sit down to begin the financial planning process is why is money important to you? And I get some strange looks on the faces of these folks because I would be willing to bet they’d never been asked that question before. Uh, and they’ve almost certainly never given that much thought if any thought at all. And the reason I asked the question is to prompt the person to explore the role of money in their life. For many people, um, money is simply there just to pay bills and to buy things, um, and to kind of help you get through life. And that’s important. And I don’t want to discount its value, um, serving that purpose in your life. But I think that there are some bigger picture ideas around money and the role it can play in your life as a tool.
It can be a tool to help help you do the things that you want to do or help you to take care of the people that are important to you. Um, and a lot of people when I either kind of press them on that question, so why is money important to you? They might give me some kind of surface-level answers, but I’ll, I’ll try to encourage them to dig a little deeper and to think a little bit more broadly and expansively about the idea. And they start to identify things like, well, it allows me to give my children a better life than I have. Or they talk about the idea of freedom or it talks a, they talk about, it’s a way that I can pass along my values to my children or my grandchildren or to my community or to an organization that’s important to me.
Uh, and that, that idea of freedom or independence comes up a lot. But the challenge is we live in a society that, that has made money, just such a taboo subject. It’s not something that we can comfortably talk about with others. And so for many people, um, I like to try to offer a very nonjudgmental, safe space to talk about money and all of the emotions and all of the stickiness that is attached to this idea of what is money? Why is it important to me? What is the role it plays in my life? But I would encourage you to think of money as more of a tool to, uh, and it, it’s not necessarily the only tool, uh, another, another tool in your quote-unquote financial toolboxes, your time. How do you spend your time? But when it comes to your money, you think about are you spending your money in a way that aligns with the things and the people that are important to you?
And for most of us, and I’m guilty of this from time to time, I don’t always do a great job of that. I lose sight of kind of the big picture and what’s really important to me. So it’s good I think to take a step back from time to time. Think about the role that money, not the role money does play the role that money could play in your life as a tool or as, as fuel to power your financial engine to help you, things that do the things that you want. And to be clear, this is not all about the deferred life plan. This is not all to plan a great life starting at age 60 or 65 or 70. Um, this is also about striking a good balance where you can be well prepared for the future and have a sufficient level of comfort and confidence that you’re well prepared for whatever the future may hold.
But also we want him to strike a balance where you can live a great life today. You want to be able to enjoy your financial resources today. You want to be able to, um, maybe reduce your savings today so you can have more money to take vacations and do things with your spouse, your children, while they’re young, things like that. Um, so again, the takeaway here is money is a tool. It’s an important tool. Don’t get me wrong, but it’s really just a tool to help enable you to do the things that are important to you. And I think it’s helpful to first identify those things that are important to you and then figure out how you can use money as a tool to help you accomplish more of the things that you want to do in your life.
End of Transcript