Saturday, 19 January 2013

Financial values

Creating wealth is not an end in itself.  Wealth is just a tool to enable you to live out your dreams.  However, many people do not take the time to truly articulate what their dreams are, what financial success means to them, what is truly important.  Without being grounded in values, a financial goal is just a generic “save enough for a comfortable retirement” or “pay off the mortgage.”  Someone who values adventure and friendship would have quite different retirement plans and housing needs compared to someone who values serenity and family.

Values are your personal beliefs about what you regard as important, worthy, desirable, or right.  They tend to reflect your upbringing, and change very little without conscious effort over time.  Knowing your values in advance of creating wealth will help you understand why you are creating it in the first place, and what to do with the wealth once you’ve accumulated it.  The financial planning firm ipac (http://www.ipac.com.au/get-the-life-you-want) even states that:
“We know from research that those who have a clear idea of what’s important to them are generally happier in life than those who don’t.”
So before I launch into goal setting tomorrow, I want to spend a bit of time today considering what is actually important to me.  There are a couple of good ways I know of to get your values out of head and down on paper.