With wealth comes an expansive list of financial opportunities: paying down debt, upgrading homes, maximizing retirement savings, or supporting future generations. The real question isn’t what’s possible, but what’s most important. The Financial “Why” is a critical part of your planning for the new year, and it’s important to take an active stance in making it a part of your annual plans.
Before we get into it, we are financial advisors in Northern Virginia, serving clients in the surrounding area and across the country. Here are some blogs related to financial planning that you may want to check out:
Now let’s get on with it!
The Financial “Why” – it matters!
This is where clarity and intentionality come into play. Financial planning, done properly, helps you make choices in alignment with your values.
Establishing the “why” behind your wealth can provide a helpful foundation. What does financial success mean to you? Is it about flexibility and independence? Generational legacy? Giving back to your community? Your “why” serves as your guidepost, helping you prioritize and sequence your financial goals.
For example, if leaving a legacy is what drives you, focus your resources on estate planning and financial education for your heirs. By rooting your decisions in your core values, every action you take aligns with the life you envision for yourself and your family.
Case Study: Rebecca and Daniel
Rebecca and Daniel were sixty year old public school teachers in Nashville, Tennessee. They were approaching a time in life when the Financial “Why” was critical – the end of their children’s high school years, and a very pivotal transition for the family.
Rebecca and Daniel had always dreamed about creating a homestead on a vacant plot of land they had acquired several years ago through an inheritance. However, they had worries and hesitations.
- What would the impact be on their legacy?
- Would they be able to balance the demands of constructing a homestead while managing their family, their health, and the last few years of their work?
- What would it mean for the inheritance they would pass on?
While these were certainly perplexing questions, through the process of examining why the homestead was so important and what it meant to their family, Rebecca and Daniel made it through the process without too much difficulty. It didn’t come easily though – it was a process that required time and attention past what they would usually devote to their annual financial plan.
Figuring it out
If you’re unsure where to start, here is a roadmap. Start with a goal (e.g., “Save more for retirement”) and ask yourself “why” five times to uncover the deeper motivation. For example:
- Why save more? To retire early.
- Why retire early? To travel with family.
- Why travel? To create lasting memories together.
With these drivers in mind, it might help to envision yourself in a future state…10, 20, or 30 years from now. What accomplishments do you want to celebrate? What regrets do you want to avoid? Write these things down with as much detail as you can muster.
When you have a clear vision, every financial decision feels intentional, reducing the stress that can come with managing wealth. It fosters a sense of control and peace of mind, allowing you to focus on what truly matters—whether it’s spending time with loved ones, building a legacy, or giving back to your community.
Are you ready to plan for the new year?
This coming year, resolve to approach your financial decisions with intentionality. Reconnect with what drives your financial goals, refine your plan with expert guidance, and take steps that move you closer to your vision. With a strong sense of purpose, this can be the year you achieve meaningful progress—and set the stage for an enduring legacy.
If you feel the Financial “Why” is important to your family, maintaining proper financial health is of primary importance. A financial advisor can help you put together a plan that incorporates your goals and preferences, as well as an assessment of your income, expenses, and savings.
We are financial advisors serving Manassas, Virginia, and the surrounding area. We create financial plans that help people make major life decisions as they pursue their life goals. If you would like to meet with us, please set up a time to speak.
Disclaimers
Any simlarities to people living or deceased are entirely coincidental
