Newsletter - Fall 2009 - Putting Money in the Context of Life

In their book Life Matters, authors Roger and Rebecca Merrill write, “Both what and how we spend dramatically impacts the quality of our lives, the quality of our relationships, and the legacy we leave to our children—not only in terms of dollars and cents, but also in terms of character, financial intelligence and the ability to interact in positive ways around money matters.”

 

Likewise, many individuals express greater financial success and satisfaction when they see a direct link between their financial planning activities and their life goals. They also feel more motivated to make improvements in their money matters when they view their financial resources as a means to express and support their values and priorities.

 

To make this critical link between financial planning and life planning, it is helpful to think of your life as being multifaceted. In addition, it is important to regard each “facet” or area of life as a significant component of your total “life portfolio,” and your investments of time and energy as resources to make your portfolio grow. If you are not experiencing the “value” for your investment you expected, it’s time to rebalance your life portfolio!

 

As you reflect on each facet of life, ask yourself these questions: What is my current level of satisfaction in this area of life? What “riches” do I currently enjoy? In what ways do my behaviors and attitudes influence my overall quality of life? In what ways can I “invest” in this facet so that I can enrich my life and the lives of others?

 

When you clarify for yourself what is most important in each area of life, you can begin to formulate life goals that are significant and meaningful to you at a very deep and personal level. You will discover that by identifying your values and clarifying your priorities, you will be able to make both the big and little decisions in life with greater clarity and purpose.

 

The next step is to think about the role that money can play in helping you to achieve each life goal. It is at this point that you will make the connection between your financial activities and your personal life goals.

 

As the Merrills remind us, our time and our money are important resources and both are “languages of value.” “They are highly interrelated, and the way we spend both communicates what’s important in our lives.”