Financial peace is not a number and wealth is about more than money. Let’s agree on a core truth, sufficient resources (time, health, money) are all needed for financial peace, but are not the true goal, and having sufficient health and time do not equal a happy life.
There are three major benefits of knowing “your why”. The first knowing “your why” provides clarity of purpose. The second knowing “your why” provides motivation for pursuing your goals. The third knowing “your why” provides toughness to stick to the plan when life goes sideways.
Back to our questions about WHAT we want:
- To work less hours?
- To be debt free?
- To retire early?
- To have $X in your retirement account?
- To lose weight, get in shape, etc.?
WHY do you want these?
- Does less time at work = more time with your spouse / children?
- Does debt free = working less so you can be home with family?
- Does early retirement = allow you to spend time pursuing your real passion?
- Does a large retirement account = freedom to travel with your spouse?
- Does better health = being around to see your grand kids grow up?
So what is your WHY? How do you figure out what it is?
Here are a few questions you can ask yourself as you spend some time reflecting on your life now and consider your future:
- What is your consuming passion?
- Are you pursuing it? Why not?
- Talk with your spouse.
- Are we living the life together we both want?
- What would that look like?
- Think about the end of your life on its current path.
- What regrets will you have?
- Why will you have those regrets?
- What would financial peace look like (be specific) in your life?
- What would change in your life? Why?
After reflecting, jot down the reasons you want to reach the tangible goals you want to reach.
So, you now know WHAT you need to accomplish (financial goals) to pursue financial peace, then you decided on WHY this is important to you. The next question is HOW do you best go about pursuing these goals?
We will discuss this in more detail next week.
Dave Conley, CFP