What's your main thing?
And are you keeping it the main thing?
Let's begin with a quote...
"The main thing is to keep the main thing the main thing." - Stephen Covey
So, what's YOUR main thing?
I give advice and write about financial planning, retirement, tax planning, and more.
And I believe all financial decisions are - or should be - rooted in your values, goals, priorities, and purpose.
You are unique.
"Today you are you, that is truer than true. There is no one alive who is you-er than you." - Dr. Seuss
You have your own definition of a life well-lived, which means what's important to you could be similar to or - much more likely - VERY different from someone else.
If you have a personal financial plan AND you're regularly reviewing, updating, and adjusting it (that’s what REAL financial planning is, folks), what do you do when faced with life's little - or not-so-little - surprises?
Regardless of what you're dealing with personally, or we're all dealing with collectively, how do you "keep the main thing the main thing"?
May I suggest something my friend Carl refers to as a statement of financial purpose:
It’s a short purpose statement for both your money and your life.
The "and your life" part is super important.
In fact, your one and only life is ultimately the only thing that matters.
Isn’t it?
It's useless to focus exclusively on your money if it doesn't support the life you want to live.
Also, please think of this as your DRAFT statement of financial purpose.
Just like your financial plan, it won’t be perfect.
But that shouldn't prevent you from investing some time to work on it.
And revise, refine, and improve it over time.
Also, thinking of it as a DRAFT means you don't have to get it perfect the first time.
It should evolve over time.
We’re going for progress over perfection here!
Just remember, your statement should be uniquely yours.
Travel?
Volunteering?
Family?
Fitness?
Pickleball?
Writing?
Mentoring?
Learning?
Cooking?
Music?
Photography?
Gardening?
Church?
What will YOU include in your statement of financial purpose?
It shouldn't conform to what you think your family, friends or society expect of you.
And it shouldn’t be too detailed.
Or tactical.
Details and tactics change.
Your statement should be something that is timeless.
Evergreen.
I suggest you start with a DRAFT of no more than 1-2 sentences.
Some good prompts for thinking about your statement of financial purpose:
Why is money important to you?
What would you regret not having done if today is your last day?
What would you want someone to say about you at your funeral?
If you had absolutely no obligations, how would you spend your perfect day?
I invite you to reply to this email and share your DRAFT statement of financial purpose.
I won't share it with anyone, and I'll be happy to share my thoughts back to you as well.
Your money will be used for some purpose, so I recommend you be deliberate and make it YOUR purpose.
Not someone else’s.
Despite all the craziness in our lives and in the world around us, I believe ongoing financial planning is a worthwhile endeavor.
Of course, I'm biased. 😉
However, even if we never have a conversation, I would encourage you to create your very own statement of financial purpose.
“Find out who you are and do it on purpose” - Dolly Parton
I think you'll find the thought exercise helpful, and it could help you refocus on what's important the next time you encounter one of life's surprises.
Or opportunities…
And if you work with a financial advisor, your statement could be helpful to share with them as well.
It could help guide your work together.
If you're a client, let’s work on exploring your personal statement of financial purpose.
Together.
I think it will help us both in our ongoing planning work.
Let me know what you think about this idea, and please feel welcome to reply with your DRAFT statement of financial purpose.
Or any questions or feedback.
And let’s all work to keep the main thing the main thing…
Thanks for reading.
Until next Wednesday,
Russ
Great post! As you note, the key is not to overthink it. Start with values, move to purpose, keep it simple, and then iterate as life evolves!