Three keys to Financial Well-being

No amount of money tips will boost some people’s financial well-being. For them the underlying cause has to be treated. Over the years I have observed there seems to be three major contributors to great financial well-being. Underlying many money problems is a gap in one or more of the three.

No amount of money tips will boost some people’s financial well-being.

For them the underlying cause has to be treated.

The three keys

Over the years I have observed there seems to be three major contributors to great financial well-being.

  • Personal mastery
  • Vocational clarity
  • Relationship strength

Personal mastery

How aware you are of alternate views, approaches and possibilities.

Plus how good you are at implementing that which you already know would improve your well-being.

Vocational clarity

Being engaged in “work” that fulfills you rather than drains you.

Have you noticed that people who like, even love, their jobs tend to get more opportunities and pay?

Relationship strength

Your relationships with your life partner and your offspring are arguably the most important relationships. Being on (close to) the same page as your life partner is critical to your financial well-being.

It also helps you be positive financial role models for your children.

The key cause of money problems

Underlying many money problems is a gap in one or more of the above.

Compounding the problem is that when our well-being is down our human nature is to console ourselves impulsively buying shiny stuff that provides a rush of short term pleasure much like a sugar hit.

When financial advice is not enough

If after investing in financial planning advice you still don’t seem to be making enough progress in resolving financial problems then an investment in either of these three areas is money well spent.

Invest in:

  • Personal development including 1-on-1 life coaching to accelerate your journey.
  • Career coaching to help you become clear on your vocation as well as the career in which you decide to earn your primary income (Ideally the same, but sometimes not possible). Then continuing professional development.
  • Relationship coaching

In fact I’d go so far as to say cut spending on everything else to ensure you have the money to make such an investment. It’ll boost your overall well-being as well as your financial well-being.

 

The dilemma of realistic financial goals

“Should our goals be realistic?” asked one participant on the opening night of my DIY Wealth Creation course last Wednesday.

They had just completed an exercise defining all the important life experiences, achievements and objects they’d like to have enough money for. This exercise is about defining the purpose of their wealth creation.

Many of us would have come across the traditional SMART goal setting technique where the R stands for ‘realistic’ and the A for ‘achievable’, so it was a good clarifying question.

“I have trouble defining realistic“, I answered. “For me, I next contemplate if I am prepared to do what it will take to achieve that goal.”

In my financial planning work I often find that people prematurely censor and filter out their financial and lifestyle goals, usually because they don’t think they are realistic.

I believe that money is one means necessary to facilitate the life I’d love to live. Therefore I believe in first defining that vision and then setting about investigating what it may take to achieve it.

I’ll occasionally drop a part of that vision as my values evolve and it is no longer important enough to me any more. I’ll also occasionally drop a goal when it becomes apparent that what it will take to achieve I am not prepared to do.

Is it realistic to set a financial and lifestyle goal of becoming a billionaire? Well many have achieved it from nothing, and Facebook founder Mark Zuckerberg achieved it in his 20s.

Many of the goals that spring to your mind may not be statistically probable, but usually they are also not impossible. If it is is truly important to you decide to investigate what it will take to achieve that goal. Then consider if you are prepared to do what it will take. Only then can you make an informed decision of what is realistic and achievable.