Financial Planning vs. Financial Purpose

Written By: Kevin Reardon, CFP®

Financial planning is the process of coordinating many aspects of your finances into a singular and cohesive plan, with the objective of achieving certain financial goals. As a client of Shakespeare and as someone who has a well-crafted financial plan, you have told us this provides you with ‘Peace of Mind’. We all feel really good about this, but is there something missing? Is there a higher level of satisfaction we can achieve with our finances? With our life?

Quite often we achieve financial success and independence because of our disciplines and work ethic. We work hard over a period of years or even decades and success tends to follow. We have moments of clarity throughout our journey, where our purpose in life is revealed. Those clairvoyant moments are wonderful yet fleeting, as our purpose evolves over time. We can frequently find ourselves on autopilot throughout life, not necessarily stuck in a rut, but perhaps caught on the same rail that we’ve been riding for years. Our days begin more out of habit than purpose. Our days end happy but not as fulfilled as we had hoped. One day we wake up and wonder the point of our labor and the fruits that come with it.

In these situations, the missing ingredient is Purpose. Websters defines Purpose as ‘the reason for which something is done or created or for which something exists’. Going a step further, Purpose is the ‘Why’ that drives us to do both the big things in life, and the everyday small things.

There are many ways to explore (and re-explore) our Purpose. Volumes of books have been written on this topic. In addition, our countless conversations with clients reveal a healthy pursuit of Purpose in life. The question we want to explore is ‘how do we align your finances with your greater Purpose’. This exploration is much different than setting goals or committing to a New Year’s resolution. It is about being purposeful with how we spend our time, talent and treasure (forgive me for stealing that last sentence from my church).

Time: One of my life goals is to stay healthy and fit, and I commit a fair amount of time towards my fitness goals. This is a good thing and working out makes me feel good. However, I achieve a much higher level of purpose when I spend time helping you achieve your goals.

Talent: There is the timeless fable that states, ‘Give a man a fish and you feed him for a day. Teach a man to fish, and you feed him for life.’ When we share our talents with others, we can literally change the world, one person at a time.

Treasure: Purchasing a new house provides great satisfaction and enjoyment. Comparatively, helping a homeless person move off the streets into a warm and safe apartment provides us something much deeper.

Frequently we address issues of ‘Purpose’ when talking about estate planning and how you want to leave your assets when you’re gone. We talk about purpose when discussing your charitable intentions and the causes that are important to you. There are those who gravitate towards community-based issues or solving global problems. The most common purpose revolves around our family and making their lives better.

As you look at your life today, what is your Purpose and how can we better align your finances to be in sync? Your team at Shakespeare is here for you and ready to help.