What this illustration from The Behavior Gap reminded me, is that people make decisions about money based on many external factors – family beliefs, early teachings, what family and friends are doing, marketing, the media, the list goes on.
However, the decisions you make around money should be based on the WHY you are doing it.
Your life… the reason’s you do everything in life is determined by what’s important to you – your values.
You need to make sure that you make decisions with your money that are based on what is most important to you in life.
If you aren’t doing this, and basing your money decisions on other external factors, your will likely find yourself with more stress and anxiety about money. Not ideal!
Good financial planning isn’t plugging some numbers into a spreadsheet or an online calculator, it’s about the intersection between your life and your money. Dreams, fears and goals don’t fit into a spreadsheet. It’s also not about finding the best investment – it’s about asking yourself why you want to invest in the first place.
So how do you make good decisions about money? First and foremost make sure you are really really clear on your core values. Then look at your goals, and what you want to achieve, and make sure they align to these values. Your decisions you make around money will become much easier and you will feel so much more confident.
If you want to chat to someone to help determine and get really clear on your values, your goals, and how they relate to your money decisions - that is exactly what we are here for.
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