Purpose drives Financial & Life Planning


Do your clients desire to be rich? The word “rich” can be defined as possessing great material wealth, and it can also be defined as that which is abundant, meaningful, and significant. Therefore, what kind of wealth do your clients desire the most? Do they want to experience a life of riches or a rich life? 

Author Pamela York asks a similar question reflected in the title of her book, How Much is Enough? She writes, “The question is deceptively simple, but the answer is critical to integrating money with other aspects of your life and finding happiness.”

In Drive: The Surprising Truth about What Motivates Us, bestselling author Daniel Pink presents the latest research in human motivation and explores how individuals establish and pursue goals. His review lead him to conclude that “satisfaction depends not merely on having goals, but on having the right goals. In other words, Pink learned that everyone (including your clients!) can dramatically increase their rate of success by first determining a meaningful and internally motivated “why” for each goal pursuit.

For evidence, Pink points to a myriad of studies based on Self-Determination Theory (SDT)―a model of human motivation that is concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways. This widely accepted model was developed by Edward L. Deci and Richard M. Ryan, psychology professors at the University of Rochester, and is now used in research around the world.

According to Deci and Ryan, goal pursuit and attainment are highly influenced by “the degree to which people are able to satisfy their basic psychological needs as they pursue and attain their valued outcomes.” These studies showed that individuals with purpose-based goals experience higher levels of satisfaction and well-being, and also reported lower levels of anxiety and depression.

Pink summarized the conclusions of the researchers in this way: “Even when we do get what we want, it’s not always what we need.” In fact, these studies revealed that what we really need is a sense of purpose. Therefore, taking time to help your clients evaluate their pursuits, based on this essential psychological need, will increase their awareness of the “why” that underlies their aspirations. This will also form a strong emotional connection to their goals and strengthen their commitment to stay on course to achieving them.

In addition, it is also important to remind your clients that money can provide more avenues or options for achieving their most cherished goals, but financial resources alone cannot produce the essential ingredients of a rich and rewarding life such as happiness, good health, loving relationships, and meaningful activities.


Source: Money Quotient

Posted by Permission of Money Quotient, NP.


Financial Independence- A Woman’s Power!


Hello Everyone!

Women have turned out to be more determined in today’s world. They are bearing responsibilities of their family and are keeping pace with men in dealing with themselves socially and monetarily. They are successfully balancing their work life balance.

In the current scenario, with the changing times it is extremely important for women to become financially independent. Women won’t be able to overcome the male biases in this male dominating society unless & until they are financially independent.

In the recent past, the whole of India has been consciously giving a lot of attention to women issues, be it women empowerment, violence against women, gender inequality & so on. But, for as long as women remain financially dependent will these things result in their empowerment…?

Women are born finance managers. They manage the household budget very efficiently, isn’t it? Then why do women feel shy to handle money matters?

Here are a few points that can make women financially independent which takes them a step closer to empowering themselves.

Draw your own salary

Try to draw your own salary. A working woman obviously draws her own salary but a housewife can also work part time or establish a homemade business which will help her in generating income.

Know your Goals

Half the things become simpler once you have decided what is more important for you & your family. Once you start making decisions in the alignment to achieve them, you would feel much more confident about your overall plan.

Build your Savings

Try to save a certain amount regularly so that it would help you to build a corpus to achieve your goals. It is crucial to have your own savings so that you do not depend on anyone else. Moreover, maintaining & nurturing that wealth is also vital.

Don’t just save, Invest!

When it comes to investing, it is said to be a men’s territory, isn’t it? Well, as I said before, learn because knowledge is power! Women lack confidence when it comes to financial matters. Nothing is impossible, if you properly analyze your Risk Tolerances, Values, Time Span & Goals. By taking the time today to learn more about planning for retirement, you’ve already put yourself on the road to being a financially independent woman.

Think of your Retirement

In most cases, women outlive men. Thus, to avoid problems in future make sure that you are preparing to lead a comfortable after retirement life. You may think that your after retirement life would be less expensive, but our standard of living never takes a down turn!

Don’t get misled

Don’t get misled or influenced by banks, wealth managers and other intermediaries in the financial field. While it is important that you follow an advisor, it would be helpful to have some basic information of your own or you will be stuck with an investment which you may not need.

Women are always taught to lean on men’s resources. So women out there…Don’t Lean, Learn! This Independence Day make a pledge to become Financially Independent!

More Later…


Values-Based Financial and Life Planning


The strongest foundation for the financial plans you create will always be your clients’ heightened awareness of the nature, influence, and importance of their values.  Therefore, in your discovery and data gathering activities, it is essential that you engage your clients in a process of thoughtful reflection to help them identify and clarify what is truly most important to them in all areas of life.

The next step is to allow this understanding to guide your client conversations and to provide them a values-based framework for establishing meaningful financial and life goals.   For example, you can suggest to your clients that they view their lives as being multifaceted and to think of each facet as a critical component of their unique “life portfolios.”

In addition, you can encourage this more holistic mindset by discussing each facet of their life portfolios (such as family, work, learning, leisure, and community) and asking questions that will engage them in thoughtful reflection:

  1. “What is your current level of satisfaction in this area of life?”
  2. “What do you value most in this area of life?”
  3. “What is your current level of satisfaction in this facet of your life portfolio?”
  4. “In what ways can you invest in this facet to enrich your life now?”
  5. “What ‘riches’ do you want to experience in this area of life in the future?”

Questions like these will help your clients to sharpen their focus, prioritize their goals, and develop a vision of life that is compelling and motivating.  You will also find that the clearer each client’s mental picture of the future becomes, the easier it will be for them to make financial and life decisions that will naturally move them toward achieving that image.

Nearly two decades ago, Kris Arzen wrote about the benefits of values-based financial planning, and her insight and advice is even more relevant and important today:

“… when you know the who, what, and why about your client, you do them the greatest service by designing plans that help them address those values.  Doesn’t it make sense that the client would want to act on those ideas faster than they would act to buy a particular mutual fund or life insurance policy? That is because you have been able to frame the plan in terms of their life.  They told you what’s important and you listened.”

There is a lot of truth to the old saying, “If you don’t know where you are going, any road will take you there.”  This is equivalent to living life without a rudder and can be wholly unsatisfying.   Therefore, as you help your clients to plan for the future, you can position yourself as a trusted advisor by encouraging them to envision and articulate the various elements they want to include in their customized life portfolios.  Whatever they identify and claim for themselves will act as an internal compass, guiding both financial and non-financial decisions they make along life’s journey. And, most importantly, as they purposefully and progressively make room in their lives for what is most meaningful to them, the degree of satisfaction and fulfillment they experience will grow and multiply.

Source: Money Quotient

Used by permission of Money Quotient, NP