Most of us have financial goals. We want to pay off the mortgage, build our savings, grow our super, invest for the future or perhaps finally get rid of some lingering debt.
They are all worthwhile goals, but there is another question that deserves our attention:
WHAT WOULD YOU LIKE YOUR MONEY TO MAKE POSSIBLE?
It sounds simple, yet it is a question few of us stop to think about. We can become so focused on earning, saving and accumulating that the numbers themselves start to become the goal.
But money is not really the destination. It is a tool that can help us create the life we want.
BEHIND THE NUMBERS
When people tell me they want to be better with money, there is usually something deeper sitting behind that goal.
They may want the security of knowing they could handle an unexpected expense without reaching for a credit card.
They may want to take the family on a holiday each year, help their children with education, own their home sooner, reduce their working hours, or simply feel less stressed every time another bill arrives.
Others want to build investments, so they have more freedom and choice later in life.
The financial number matters, but what that number represents matters even more. Once we understand this, financial decisions become much clearer.
LET YOUR PRIORITIES LEAD THE WAY
Two families can earn the same income and make completely different financial choices.
One family may place a high priority on paying off their home as quickly as possible. Another may choose to make minimum mortgage repayments while investing more heavily for the future. Someone else may happily take longer to repay their home because regular travel and experiences with their children are important to them.
There is no single version of financial success that applies to everyone, and your money should reflect your priorities.
The problem comes when we start adopting other people’s goals without asking whether they are suitable or meaningful for us. What your neighbour, colleague or family member is doing with their money shouldn’t become your financial strategy by default.
MAKE ROOM FOR TODAY/TOMORROW
A solid approach to money recognises that life is happening now, and we need to live today.
Planning for the future doesn’t mean we have to postpone everything enjoyable until retirement. Equally, enjoying today without making any provision for tomorrow creates unnecessary pressure later.
The challenge is finding a balance that allows us to enjoy our lives, meet our responsibilities and continue making meaningful progress.
