Prioritize your money and your life with these key questions

By Stephen High

One reason many people feel uncomfortable about their financial future is they have not developed a financial vision for themselves. Not having a plan can adversely affect how individuals spend or save their money.

Have you created a plan for your financial future?

How many of your life’s goals and dreams are tied to money or are dependent upon money to achieve them? More than likely, many of your personal goals are tied to money — not money itself, but the lifestyle or financial freedom that money can provide. You can start by asking yourself, “What are my goals in life?” In addition, ask yourself, “What are my values?” These are great questions that most people seldom ask or answer. But let’s take these questions a step further.

What does your financial future look like?

Imagine that you are financially secure, that you have enough money to take care of your needs, now and in the future. How would you live your life? What would you do with your money? Would you change anything? Describe a life that is complete. Take the time to project forward five years, 10 years or 20 years into the future. Imagine that your financial life is perfect in every respect. Create a clear mental picture of your financial future as if every financial desire had been realized.

Now imagine that your doctor tells you that you have five to 10 years to live. The good news is that you won’t ever feel sick. The bad part is that you will have no notice of the moment of your death. What would you do with the time you have remaining to live? Would you change your life, and how would you do it?

Let’s take this a step further. Now your doctor stuns you with the news that you have only one day to live. What feelings arise as you confront your very real mortality? What dreams will be left unfulfilled? What do you wish you had done? What did you miss?

Why are these questions important in determining your financial future?

By answering these questions you can begin to develop a clear vision of what is financially important to you and what you need to do to achieve your dreams and goals in a timely manner. The greater the clarity you have regarding your long-term financial future, the faster you will likely realize your dreams. So having a clear vision is essential, but you must also act to realize your vision.

Once you have decided where you want to be financially, the next step is to determine where you are today financially. To calculate your current financial net worth, add up all of your assets at market value and then subtract all of your debts and liabilities. In addition, you should also gather your key personal documents such as your wills/trusts, powers of attorney, insurance policies, recent tax returns, etc. to be sure they are up-to-date.

Next you need to determine the steps necessary to bridge the gaps between where you are today and where you want to be in the future. You will also want to determine what your time frame is for bridging the gaps.

More than likely you will need professional help in creating and achieving your financial vision. You should carefully build a high-performance team of advisors to assist you in transforming your vision into a reality of financial success. Your team should include a financial advisor, CPA, attorney, insurance expert and perhaps others.

Your financial advisor can help you develop a written plan designed to help you achieve your vision of financial success. A good financial advisor can develop a personalized plan based on your specific values, goals and assets, along with your ability, willingness and need to take risks. Your advisor should help you implement your plan, monitor it and modify it as appropriate as you go through life changes in fulfilling your financial vision.

If you are committed, you can attain your financial vision. It will take passion, resolve and living with intention to weather the journey, but your dreams can become a reality. We can help you through that journey.

“Cherish your visions and your dreams as they are the children of your soul, the blueprints of your ultimate achievements.”
~ William Ward