My philosophy about money is that it is nothing more than a tool, a very useful tool. As a tool, it needs a purpose. So often we are just programmed to think, I need more money. But why more? What is it that you want to be different? And exactly what will you do with it when you get more? This is where having a vision for your life, and consequently your money (financial vision), comes in.
Beyond procuring us our basic life essentials, money has the power to transform the way you spend your time which transforms your life. How much time will you spend earning money? How much time will you spend doing other things powered by your money? Also important, with whom will you share your money or bless with your money?
So even though this is very big picture thinking (and you may just be focused on getting your rent paid next month) it’s an important step to set a broader vision for your life to guide your money choices as you go. Think of it as a ‘root cause’ analysis of your money’s purpose, which should of course support your purpose and mission.
What's In This Post
What do you want more and less of in your life?
The steps I like to take in this process are quite simple. First, just make a list of what you would like more of in your life and what you would like less of in your life. These might be simple or even (dare I say) materialistic things, like: more dinners out, more shoes, more vacations. They might be deeper things like: more friends, more time with my parents, more giving to others. The more you push yourself to list more things, the more you may find the full spectrum of your ‘want more’ and ‘want less’ things.
Grab the printable worksheet for this exercise in my shop to get started with a preset worksheet.
Having a vision for your future
Second, I think it’s helpful to ask yourself where do you see yourself or your family in the next year, as well as in 5 and 10 or more years? I like this ‘looking into the future’ approach because it’s much easier to cast aside the logistics and limits of your current life and just see your vision of a more ideal life. It’s a quick and easy way to get down to where you really want to be, especially after the introspective process of listing out all your possible ‘want more’ and ‘want less’ thoughts.
To help drill into money-related goals a bit more with your ‘where do I see myself’ questions, try breaking into four categories.
Home
First, your home related future. Do you envision remodeling? Moving out? Anyone moving in? Building? Living in a castle by the sea? Spell out what kind of home situation you see for yourself as ideal when you think through within the next year, in five years, in 10+ years.
Income
Do the same for your working/income situation. Anticipate a job change or retirement? New business or other income plan? Thinking ahead of how you want to build towards what you envision for your money making future makes change possible.
Family
Third, what does your family makeup look like? Marriage, having kids, kids going to college, aging parents moving in- these types of things have major impacts on your life and finances, so think through them.
Lifestyle
And fourth, what is your lifestyle over these time periods? In other words, how do you foresee spending your time? In my example on the blog, I blocked this into a table to see the different categories across 1, 5, and 10+ years.
You may want to freely doodle some of this out and come back to it over a few days. I personally have a notebook that all my brain doodles go into, including this kind of financial life planning among everything else my brain chews on. Or you can sit down with your spouse and have a dedicated dream session. Whatever works best to get the scheming and dreaming rolling.
You may also think, I have no idea where I see myself in 10 years and I can’t even think of that right now- I just need to get out of debt! And that’s ok!
If you don’t have some super grand scheme in your head, just get as far as you can. The point is setting a direction more so than planning out your whole life. (Spoiler alert: your plans will change anyway!) I revisit this kind of thinking maybe every year or two because life changes. We change. And refocusing our purpose and vision of our future is important to evolve alongside these other changes.
You might also like:
- What drives my money moves? Example of creating a vision for your life to motivate your money management
- Managing time freedom after my resignation: how to optimize going off the clock
- Family Goals: How to Curate Time Freedom
- 2 Types of Short-Term Financial Goals & 27 Examples to Get Started
Create a visual… er, vision for your life
If you have any specific aspects to your vision for your life that are particularly motivating, like finally living in that castle by the sea, paint or draw a picture, find a photo, print something off the web, whatever helps you get a visual of where you truly want to be. Seeing something like this daily that reminds you of your true intentions with your life is very motivating, especially among the minutia of everyday life, to keep making choices that lead you there. Including choices with your money.
Key Takeaways
In completing this ‘visioning’ exercise, you should now be able to return to your spreadsheets regarding your bill paying, your debts, and your savings, and be able to outline more clearly your priorities, timelines, and the small milestones to get you to the larger goals.
The vision may change, and therefore the interim goals may also change. BUT by having set some intentional goals and started making progress towards something that truly matters to you, you will become increasingly empowered, as well as nimble to adjust… and ultimately be able to chase bigger and bigger dreams.