Find Out Why Money Is Important to You to Get a Secure Financial Plan.
Of course, financial stability is important. But why? Obviously, this is responsible and gives you options, but this is a rather vague reason. To come up with the best financial plan, ask yourself what money actually means to you personally.
Most of us reach a point in our lives where we want to take a closer look at our financial situation. We want to develop a plan to put our finances in order. In his book A Financial Plan on One Page, writer and financial planner Carl Richards says it’s important to ask yourself, “Why?” in the planning process. In fact, keep asking “Why?” until you get a personalized answer about what money means to you as an individual. You want to know why money is important to you.
Your initial response may be freedom – this is common. But freedom from what? Maybe you want to spend less time at work so that you have more time for yourself. But why would you spend more time yourself? What would you do with him? The answer will be different for everyone, but that’s the point. Regardless of the answer, which should form the basis of your financial plan. Richards explains:
The purpose of the question “Why?” not to come up with specific goals or action plans. It aims to reveal the reason why you have certain goals. Expect early answers to come fairly easily. But give yourself time to stop and think carefully; In doing so, you can go even deeper, getting closer to what is most important. Once you decide on the ‘most important’, you have a tool to help you make many decisions in the future … “
When I was in debt, I wanted to get my finances in order. Why? Because I wanted to stop worrying. I had other things that I wanted to do in my life, for example, pursue another career. After all, I wanted to clean up my finances in order to make a living as a writing goal. It gave my finances a sense of purpose – and kept me motivated.
It is much easier to make responsible financial decisions when there is something for you, and knowing what money means to you can help you understand what that “something” is. You can check out Richards’ book at the link below.