By: Joseph Goldy, CFP®
When you think of Arnold Schwarzenegger, visions of his bodybuilding championships, blockbuster movies, and tenure as the governor of California probably come to mind. However, the Austrian-American renaissance man has added another accomplishment to his impressive resume - author. In his book "Be Useful: Seven Tools for Life," Schwarzenegger outlines his philosophy for leading a fulfilling existence by being useful and serving some cause greater than yourself.
While the book covers a wide range of topics from Schwarzenegger's life experiences, one overlapping theme is the importance of having a clear purpose. This philosophy can be directly applied to the realm of personal finance and financial planning.
After all, what is the point of accumulating wealth if you don't have defined goals and don't utilize your resources in a purposeful way? Let's explore how the wisdom of "Be Useful" can shape your approach to financial planning.
Discovering Your "Why"
In the book, Schwarzenegger stresses the significance of discovering your "why" - the driving force and purpose behind your actions. He states, "Having a vision for making your mark on the world with service and grace is the anchor for this blueprint." When it comes to financial planning, it's critical to establish your "why" from the outset.
That’s why at HIGHLAND, the first meeting new clients will go through is a Life Planning meeting where we use a unique way to help people discover their vision. Are you hoping to retire early and travel the world? Do you want to leave a legacy for your children and grandchildren? Is your goal to fund meaningful philanthropic causes?
Defining your purpose upfront provides clarity and motivation as you implement your financial plan. Out of this initial Life Planning meeting, we develop a Vision Statement that becomes the touchstone for all the planning work we do together.
As Schwarzenegger states, “You need to be able to see what you want to achieve before you do it, not as you do it. That’s the difference.”
Aligning Money with Values
Schwarzenegger reminds readers that "being useful" means taking actions that create value and positively impact the world around you. This same mindset can be applied when directing how your money is saved, invested, and spent. Do your spending habits align with your core values? Are you investing in funds or companies that resonate with your ethical principles? There's power in purposefully shaping your finances to reflect what matters most to you.
The Importance of Discipline
The ability to cultivate discipline in the face of challenges is a common thread woven through his accomplishments as an elite athlete, actor, and public servant. Likewise, following through on a financial plan requires an incredible amount of discipline over long periods of time. It means keeping spending in check, consistently setting aside money, and avoiding emotional decisions that could derail your progress. Approaching your finances with the same grit Schwarzenegger tapped into can set you up for success.
At HIGHLAND, we emphasize the importance of discipline, whether staying invested in the market through volatile election years or remaining focused on long-term goals within a client’s financial plan. A popular misconception is that wealthy people do not have to maintain as much spending discipline since their incomes are higher or their portfolios are larger. Without discipline, the most successful financial plans can get off track due to excessive spending or poor planning of future expenses.
Giving Back and Leaving a Legacy
Schwarzenegger advocates for using your talents, when possible, to solve problems and elevate others. It's about defining a legacy beyond just personal prosperity.
While financial strategies and investment vehicles are a core component of planning, Schwarzenegger's "Be Useful" reminds us of the human elements that should drive those decisions and how to create a legacy that’s defined by you.
With purpose as the centerpiece, you can shape your finances to align with your values, maintain the discipline to pursue your grandest objectives, and ultimately leverage your resources to positively impact the world around you. That's the extremely useful intersection between Schwarzenegger's teachings and effective financial planning.
There are other valuable tools mentioned in the book, and his stories help bring them to life. I felt the entire book was a great primer for life for my teenage sons, who are now reading it.
I’ll end with a parting quote from Arnold that succinctly sums up the purpose of getting good advice, which translates to good financial advice “...It’s not to tell you what to build, it’s to show you how to build and why it matters.” I love that framing, and it gets to the heart of the work we do at HIGHLAND.
Joseph Goldy, CFP®, is a wealth advisor and CERTIFIED FINANCIAL PLANNER™ at Highland Financial Advisors, LLC, a fee-only fiduciary wealth advisory firm based in Wayne, New Jersey.
Joe specializes in working with newly independent women because of divorce or losing a spouse. He understands firsthand the value of having a clear financial picture pre- and post-divorce and a plan to restate goals as a single person. When he is not helping clients, Joe enjoys spending time with his two sons outdoors and volunteering to help raise money for Type 1 diabetes organizations.