Evergreen Series Part 1: Introduction

 

The notion of a financial plan often conjures images of a singular, meticulous process—a snapshot in time, capturing the financial landscape at a specific moment. However, this perception overlooks a fundamental truth: financial planning is an evergreen, dynamic discipline that evolves alongside individuals and their aspirations. 

This series embarks on a journey through the intricate ecosystem of financial planning, highlighting its perennial relevance in a world characterized by change and uncertainty to help you understand:

• What is Financial Life Planning

• Why you need it 

• How to do it

• Importance of building resilience

• How to conquer your fears and reach your dreams 

By the way, that last bullet point, “how to conquer your fears and reach your dreams,” is not hyperbole.  The challenge for many of the people I work with is they have no idea how to conquer their fears or even identify what brings them true, authentic joy.  

Instead, many people feel compelled by the “status quo” or what they believe to be the expectations of “should'' or feel pushed by “shame”.  

Some say, financial decisions are based on “money scripts” or deeply held beliefs that I should… 

… put money in a 401k / set up a 529 plan / donate to a charitable cause…

… without really understanding the reasons for doing so.  Without considering all of the other important financial and life priorities an individual or family may face.

At its core, the essence of financial planning lies in harnessing one's resources to achieve a desired outcome, be it focused goals such as securing retirement, funding education, or life-long aspirations such as attaining financial independence.  However, the ever-changing nature of our lives introduces a myriad of variables that demand regular reevaluation and adjustment.

Connecting the technical aspects of financial planning to the human elements of life is what sets financial life planning apart as extraordinarily valuable and quintessentially Evergreen.

What is Financial Life Planning?

Financial life planning is an approach to financial planning that goes beyond traditional financial advice and focuses on understanding and aligning an individual's financial decisions with their core values, aspirations, and life goals. Instead of solely concentrating on financial products and investments, financial life planning delves into the client's emotional and psychological relationship with money. It seeks to create a comprehensive financial plan that reflects One’s unique vision of a fulfilling life.

Financial life planning recognizes that money is not an end in itself but a means to enable you to live a life that aligns with your passions and aspirations. 

By exploring your beliefs, attitudes, and emotions surrounding money, financial life planning helps you uncover any limiting beliefs or fears that may hinder your financial progress. This self-awareness empowers you to make conscious and informed financial choices, free from impulsive decisions influenced solely by external factors.

Proper financial life planning can open doors and capture opportunities you could never have imagined even existed.  This is the true power of financial planning.  It is so important that it bears repeating.  

Financial life planning can open doors 

and capture opportunities 

you could never have imagined for yourself.

Financial life planning is more than just aligning your financial decisions with your values; it's a journey of self-discovery. It encourages you to confront any limiting beliefs or fears that might have held you back in the past, liberating you to make conscious and informed choices that reflect your true aspirations.

Testing the limits of imagination.

Imagine a dynamic decision tree or an “if-then” statement, stretching far beyond what the eye can see.  Try playing out this process for as long as you can.  

How far did you get?

We find most people can do a reasonably good job for about 6-12 months out.  Any further out, many intermediate steps are missed because they could not be foreseen.  

Challenges arise such as illness or an accident that can change the expected timeline for planned goals or create a financial burden.  While technology can help us stress-test scenarios or gauge risks, they are still bound by the limits of our imagination. That is why we emphasize establishing a robust emergency fund and regularly perform a comprehensive evaluation of your insurance coverages.  

What is your why?

Understanding your “why” is perhaps the most underappreciated aspect of financial planning.  Discovering your purpose and putting words to your aspirations is how you learn to conquer your fears and reach your dreams.

Embracing the life planning approach is a commitment to financial resilience and empowerment. It is an acknowledgment that financial well-being is an integral component of a fulfilling life, one that requires continuous cultivation and adaptation. By understanding the nuances of this dynamic process, we can forge a path towards lasting financial security, ensuring that our financial resources align harmoniously with our ever-evolving aspirations.

Stagnation in financial planning will lead to missed opportunities or, worse yet, financial vulnerabilities.  It can also stifle the potential for growth and prosperity.  Financial life planning is a journey that extends far beyond a snapshot in time—it's a perpetual exploration and self-renewal. 

Financial life planning is an ongoing process of discovery and self-renewal.  It is financial planning for the human soul. 

It Is Evergreen

As we continue this series, we'll delve into the 'why' and 'how' of financial life planning, unveiling the profound impact it can have on your financial well-being and the fulfillment of your aspirations.  

Part 2 of the Evergreen Series, will dig deep in exploring your “why” by defining goals, aspirations, and dreams.