If you’ve ever been asked to do something that you see no purpose in, you’ll understand how hard it can be to motivate yourself in this situation.
Author Simon Sinek famously championed the power of “starting with the why”, for building successful companies. And the same rationale could be applied to your finances.
Understanding your financial purpose – your why – could help you build the money mindset you need to establish and achieve your goals.
Read on to discover why your money mindset is important and learn how to find your financial “why”.
Understanding your financial why could help you overcome money mindset blocks
Your money mindset is a set of beliefs and attitudes about money that you’ve built up since childhood. It can have a powerful effect on how you save, spend, and manage your finances.
For example, you might have an abundance mindset that makes you believe there is always plenty of money to be made if you choose to go out and find it. This could help you achieve success in business and allow you to minimise financial anxiety.
Conversely, you might have cultivated a scarcity mindset and tell yourself that making and holding on to money is difficult. This could make it more challenging to accumulate and grow your wealth.
Such “money blocks” might prevent you from achieving your financial goals. Whereas, identifying and removing them could help you develop a more positive money mindset.
Understanding your financial why could help you break down any money blocks you have because having a purpose can be a powerful motivator for success.
So, if you know your why, you might be more driven to remove any money blocks that are preventing you achieving your goals.
Identifying a financial purpose is key to effective goal setting
Goal setting is at the heart of effective financial planning. And understanding your overarching purpose could help you set short-, medium-, and long-term goals.
Additionally, knowing your why might make your goals more meaningful and give you the motivation to stick to your long-term financial plan, even when it may feel difficult to do so.
A financial planner can help you create achievable action plans that move you closer towards your goals and your overall financial purpose. A planner can also monitor your progress towards goals and help you adjust your plans to keep you on track.
How to find your financial why
You could find your financial why in just three simple steps.
1. Review your spending habits
Look at where you spend your money, where and when you overspend, and so on. This can help you understand what’s driving you and allow you to prioritise what’s most important – what is essential expenditure and where could you cut costs to help you achieve your savings goals?
2. Look for patterns in how you think about money
Writing down or journalling your thoughts about money could reveal your financial purpose.
Are you constantly dreaming of exotic holidays and fast cars, or do thoughts of changing your career and early retirement monopolise your thoughts? Noting these thoughts down could help you understand what motivates you to work hard, and what you aspire to achieve in life. You might discover a financial purpose you didn’t know you had.
3. Consider the needs and wishes of your family
Your financial purpose might be tied up with the needs and life goals of your family. For example, when thinking about your financial goals you may want to consider your child or grandchild’s education plans or the care needs of an elderly relative.
Once you know your purpose or your “why”, a financial planner can work with you to align your financial plans with your goals.
Get in touch
If you’d like to learn more about aligning your goals with your financial purpose, we’d love to hear from you.
Please email us at firstname.lastname@example.org or call 0345 505 3500.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.