The financial planning industry is witnessing a shift, with a small but growing number of firms recognizing a deep connection between financial planning and creating a meaningful life. This emerging perspective transforms traditional narratives around wealth accumulation, suggesting a more holistic approach to financial strategy. This evolution in thought underscores the belief that financial planning is more than just creating a sophisticated investment portfolio or a comprehensive financial plan; it is a deliberate process of aligning financial choices with one’s life’s purpose and values. Such alignment fosters a sense of meaning and empowers individuals to pursue their passions, support their loved ones, and contribute to causes close to their hearts.
Brian Portnoy, a noted financial educator and author, captures this sentiment succinctly when he states, “True wealth is the ability to underwrite a meaningful life.” This perspective is essential, highlighting that genuine wealth transcends monetary value, embodying the capacity to facilitate a life filled with purpose and connection. Portnoy’s insights are particularly relevant in this context as they underscore the essence of financial planning—not as a mere accumulation of assets but as a strategic tool for crafting a meaningful life.
Terminology and definitions are important in this context. What are the differences between happiness and meaning? Shouldn’t the pursuit be that of happiness? Drawing from the profound narratives and research presented by Emily Esfahani Smith in her Atlantic article “There’s More to Life Than Being Happy” and the enduring wisdom of Holocaust survivor Viktor Frankl, we see that while happiness can be fleeting and contingent on our circumstances, meaning is cultivated through our contributions to something greater than ourselves. These insights form a compelling argument for the importance of investing in experiences that enrich our lives and the lives of others, thereby building a narrative of personal growth and societal contribution.
Central to this discussion is the concept of legacy planning, which extends beyond the mere transfer of assets to include the impartation of values and lessons that have shaped a meaningful existence. This facet of financial planning enables individuals to leave a lasting impact that transcends their lifetime, contributing to a legacy of purpose.
A nuanced approach is required to effectively integrate meaning into financial planning—one that blends practical financial strategies with a deep understanding of personal values and aspirations. This includes:
- Defining Your Core Values: Identify what is genuinely important to you, be it family, community, creativity, or independence. These core values will be a compass for your financial decisions, ensuring they resonate with your life’s purpose.
- Setting Goals Aligned with Your Values: With a clear understanding of your values, establish short-term and long-term financial goals reflecting these principles. This might mean prioritizing savings for a child’s education or allocating resources toward charitable giving.
- Creating a Values-Based Budget: Craft a budget emphasizing spending on experiences and initiatives that offer meaning and satisfaction over superfluous luxuries, enabling you to live within your means while pursuing a life aligned with your values.
It’s clear, to us at least, that financial planning is key to wealth accumulation and unlocking a life rich with purpose and meaning. By rooting our financial choices in our deepest values and directing our resources toward fulfilling goals, we pave the way for a life that is not only financially secure but also profoundly meaningful. The magic happens when we combine these two pieces. This all-encompassing approach to financial planning involves a new language and a skill set that many in the financial planning industry are just beginning to learn. Done right, this will guide us on a journey of self-discovery and purposeful living, giving us the best chance at crafting a life well lived.
