Money and the Pursuit of Significance
Three Strategies for Establishing a Strong Financial Future, One Savings Piggy Bank at Each Step
Money, a powerful tool in our lives, often reflects our values and beliefs. The way we manage and use it can be a physical manifestation of what we prioritize and what we hold dear.
Lessons from Childhood
Growing up in a household of South African immigrants, the author learned the importance of stewardship and responsibility regarding money. Their parents did not provide allowances but offered opportunities for earning money in exchange for work, and a three-tiered piggy bank system—spending, giving, and savings—was introduced early on. This simple yet effective system instilled values of generosity, responsibility, and long-term planning.
The Pursuit of Success and Beyond
Success, often seen as a final stage, can feel like a mirage that never quite checks the fulfillment box within us. It is essential to remember that success is not the end goal but the beginning of a journey towards significance. The success stage is the time in our lives when we can pursue our wants over and above our needs. However, it is crucial to manage this newfound wealth responsibly and align it with our values.
Defining Our Values
Defining our values can help bridge the gap from success to significance by aligning our financial actions with a purpose beyond personal gain. By understanding what matters most to us—such as family, health, education, or community—we can guide our financial decisions to ensure they support our priorities.
Financial Planning for a Purpose
A financial plan should align with one's values, mission, and vision, and encompass money for "me", "we", and "thee". It's important to define what you value to guide how you live your life and manage your money. This mindset helps one see financial success as a means to achieve broader goals.
The Role of Education and Empowerment
Learning how money works and making informed financial decisions empowers individuals to break free from financial uncertainty and build a foundation for long-term success. This understanding can translate into significance by enabling individuals to teach others and create positive change.
Money and Relationships
Money is one of the leading causes of divorce and family hurt. When couples align their financial goals with shared values, it strengthens their relationship and fosters a sense of shared purpose. Building financial intimacy can lead to greater financial freedom and a more significant impact on their lives and communities.
The Legacy of Money
The impact of how one uses their money extends to future generations, serving as an example to children and grandchildren. Neglecting to recognize the power of money can lead to devastation for one's family, while being intentional with it can create a positive legacy.
Experts Offer Guidance
Programmes like the Kiplinger Building Wealth programme handpick financial advisers and business owners from around the world to share retirement, estate planning, and tax strategies. These experts include professional wealth managers, fiduciary financial planners, CPAs, and lawyers with certifications like CFP®, ChFC®, IAR, AIF®, CDFA®. Their guidance can help individuals make informed decisions and create a financial plan that reflects their values and supports their mission and vision.
By aligning financial actions with personal values and adopting a growth mindset, individuals can transform their financial success into a more meaningful and significant impact on their lives and the lives of others.
In the pursuit of significance, it's crucial to manage our newly acquired wealth responsibly, aligning it with our values for a more meaningful impact. This can be further facilitated through education and self-development in personal finance and investing, as understanding money's workings empowers us to make informed decisions, break free from financial uncertainty, and create a positive legacy for our future generations.
