Imagine you're at the end of your life, surrounded by loved ones. What stories do you want them to tell about you? What does it mean to have lived a full life? Are you living that way now? These are profound questions that force us to confront our priorities and values. Today, I'm making a bold claim: everything you've heard about financial planning and wealth management is pointless unless you understand one crucial thing - your "Why."
Understanding Your "Why"
When you know your "Why," your "What" becomes clearer and more impactful (wise words from comedic thought leader Michael Jr.). Stephen Covey, author of The 7 Habits of Highly Effective People, illustrated this perfectly when he said people can spend their whole lives climbing the ladder of success, only to find it's leaning against the wrong wall. So, begin with the end in mind and know your "Why." When you know your “Why,” you then know where to lean your ladder.
To ensure your ladder is leaning against the right wall, you must understand what you truly value. Here's a tough question: if someone reviewed your credit card and bank statements for the past five years, would they see what you truly value? For many of us, the answer is no. Life happens. We get busy, distracted, and lose sight of what really matters. But here's the good news: it's never too late to realign your values with how you use and allocate your money. In an ideal world, our values and how we use our capital would completely overlap. That's where we find true fulfillment—not just in accumulating wealth but in using it in ways that reflect our deepest values.
The Great Wealth Transfer
Over the next 20 years, an unprecedented $124 trillion in assets is projected to be transferred to the next generations and charities (according to Cerulli). This massive wealth shift, known as the Great Wealth Transfer, will reshape the financial landscape for generations to come. This wealth transfer highlights the importance of understanding how wealth accumulates over time. One of the reasons wealth continues to grow even after retirement is fear. Fear of the unknown, fear of not having enough, or fear of losing what you have can lead to a reluctance to spend (or even a reluctance to invest and hoard cash). This fear often stems from deep-seated anxieties about financial security and the desire to maintain a certain lifestyle or status. As a result, many people continue to accumulate wealth without fully enjoying it, missing out on experiences and moments that truly matter. This phenomenon highlights the importance of understanding how wealth accumulates over time and the psychological factors that influence our financial decisions. Many people also continue to grow their net worth even after retirement, often because it's hard to shift from saving mode to spending mode. However, this can mean working for “free” during some part of your life and missing out on precious moments like family vacations or children's recitals because you were too busy accumulating wealth you may never use.
The Power of Experiences
You've probably heard the saying "money doesn't buy happiness." While that's true, I'd argue that money can buy experiences, and experiences create memories and memories create joy. At the end of your life, will you cherish the things you bought or the memories you made? As James Lane Allen put it, "The business of life is the acquisition of memories." So, let's start investing in moments that matter.
No Better Time than the Present
When's the best time to plant a tree? Twenty years ago. When's the second-best time? Now. The same goes for using your wealth to make an impact—whether it's helping your children or supporting a cause close to your heart. Don't wait until it's too late.
Imagine the good that could be done now if that wealth were transferred today. Charities are eager to receive funds sooner rather than later because they can use them to address pressing issues immediately. By donating now, you can see the tangible impact of your generosity firsthand. It's not just about leaving a legacy; it's about creating change in real-time. For instance, charitable giving can empower lives by providing vital support to those facing poverty, illness, and lack of access to education. It can also foster connections and promote well-being by inspiring others to give. In a time when charitable giving is declining in some areas, your immediate contributions can be especially impactful.
Statement of Financial Purpose
What's important about money to you? This isn't just about dollars and cents; it's about creating a filter through which all future financial decisions are made. Imagine I'm sitting down with your child or grandchild years from now and asking them what they remember about money and their relationship with you. What do you hope they say? That question can guide everything we do moving forward.
Purpose & Meaning
At its core, this isn't just about managing money—it's about managing life. It's about aligning your resources with what truly matters so that when your story is told one day, it reflects a life well-lived. So, I'll leave you with this challenge: don't wait for some distant "someday" to start living fully beyond wealth. Plant that tree today. Because in the end, it's not about the money you've saved, but the life you've lived and the impact you've made. So, take a moment to reflect on your "Why," align your spending and how you allocate your money with your values, and start Living Fully, Beyond Wealth today.
If this message resonated with you, pass it along to someone who needs a reminder that true wealth is about more than just money—it's about living with purpose.
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