Starting with The End in Mind

Question

Duncan, what is Financial Life Planning?

Answer

The typical financial strategy demands that you set aside money for some distant future that you may not even live to enjoy. For many people, the idea of slogging away for 20, 30 or even 50 years before seeing any reward simply doesn’t appeal. They either never get going or they abandon the plans pretty quickly.

A small group of financial planners is wondering whether we haven’t got the whole thing backward.

These planners, specialists in the emerging field of life planning, say that most financial strategies would work better if people concentrated on getting what they really want out of life as they live it. While some delayed gratification is needed to reach any goal, life planners suggest that more people would be able to make the necessary trade-offs if they were living happier lives that authentically reflected their true values.

Advocates of life planning say they’re looking for a more holistic approach to financial planning, one that considers a client’s most deeply-held values instead of focusing exclusively on how big a pile of money they can accumulate.

So you’re secure. Now what?

Think solutions, not obstacles.
You’ll obviously need to identify the obstacles that might keep you from the life you want, life planners say, but you can’t stop there. Instead, you need to zero in on solutions.

Here are some key questions that may help you accomplish that task:

• What’s standing between me and what I want?
• What’s my plan for overcoming each of these obstacles?
• What do I have, in terms of personal strengths and outside resources that will help me deal with these obstacles?
• What skills and knowledge do I need to add to accomplish this change?
• Are there other people I can call on for help in overcoming these obstacles?
• What’s my time line for overcoming these obstacles?
• How can I make these changes happen sooner?
• Do I need my family’s support for making this change?
• If so, how can I rally that support?

How can I evaluate and monitor my progress toward my goals?

Ultimately, the goal is meaning, not cash.