For 99.5% of people, we have a set of guiding principles, morals and values that drive us in the way we make our decisions. The other 0.5% go into politics. So statistically, I’m most likely congratulating you on living a politically-free life. But did you ever consider your financial principles?
Understanding what’s important to us, our families, our dreams, our desires is crucial because, we make all our decisions based on those principles. Take some time to think about how this would affect your finances.
Choose your financial morals so that you can choose a better, fulfilled life:
1. Imagine you’re dying. Suppose your doctor told you that you have months, maybe, to live. What would you start doing with those months in regards to money? Would you sell needless things? Would you establish a secure lifeline for your family? Would you travel?
2. Think about your non-moneyed goals. Is it your goal to visit the pope? Do you want to run with the bulls in Pamplona? Do you have some work to be done on your house? Do you wish to be treated in a first-class medical facility in Pamplona?
• These non-money related goals help you have laser focus on your finances.
3. Imagine what life would be like if you didn’t make as much. If your total in the bank was cut by 15-20%, studies show most people would freak out. Avoid the freak-out by thinking what you would do instead. Eat out less? Cut subscriptions to Spanish-themed cooking classes? Consider which activities and luxuries would be the first to go. How would you continue to save and invest?
4. Imagine what life would be like with more money. This one is easier. Imagine you’ve got an extra 50% coming in. Oh yeah, baby! Imagine the yachts, the islands and all the champagne you could consume now. But after that gets tiresome, what activities and habits would you change? You might even drop a few activities to make room for something new.
• The world you’re imagining now says a lot about what your financial values are. Is saving a major part of this dream fantasy? How about sitting on your yacht in the Mediterranean while contributing more towards your kid’s college fund? Did that ever come into it?
• Think about your passions, your desires. Sure, you enjoy those 22” spinners on your rims, but the thought of your own outdoor Jacuzzi really excites you too. Should you align your morals more towards what you like, or what you love?
5. Consider the end. Not the end of life, but the end of your working life? Where would you like to live? How important is your finish, your retirement, compared to the present? Would you rather live well now or in the future?
6. How much of your time would you trade for 20% of your income? Let’s say you earn $50,000. And what exactly is worth another $10,000? Weekends? Late nights and early mornings? A more stressful job? A career change?
7. Which charitable organization means the most to you? Even if you’re not giving much now, do you like the idea of being the joyful philanthropist with hospital wings and college libraries? Or maybe a simple orphanage in a third world country? What really matters to you, and makes your heart melt?
So unless you’re reading this from your cushy Senate seat, you probably already know what it’s like to have a guiding set of principles in your life. But really take the time to get to know what matters in your financial life as well. And if necessary, make changes to more align your money with your morals.
Have an awesome week ahead and remember to share this article!
