By: Joseph Goldy, CFP®, CDFA®
As a Certified Financial Planner, I've observed that the most successful financial strategies aren't just about numbers – they're deeply rooted in personal values and long-term life objectives. When financial goals align with what truly matters to you, you're more likely to stay committed and find fulfillment in your financial journey.
Understanding the Values-Money Connection
Your relationship with money reflects your core values and life priorities. It helps to understand that this relationship with money and our beliefs begins when we're young and continues throughout our lives.
Whether you value family security, personal growth, community impact, or lifestyle freedom, your financial decisions should support these fundamental beliefs. Before setting specific financial targets, reflect on what truly matters to you.
Consider questions like:
What does financial success mean to you beyond the numbers?
How do you want your money to impact your family and community?
What lifestyle do you want to maintain in the long term?
What would give you peace of mind regarding your finances?
Creating Value-Aligned Financial Goals
Once you've clarified your values, you can develop financial goals that serve your deeper purpose. You can begin by defining your long-term vision.
Start by imagining your ideal future 10-20 years from now. Are you running your own business? Living abroad? Supporting your children's education? This vision becomes your north star for financial planning. Each short-term financial decision should move you closer to this bigger picture.
Next, break down your goals by transforming your vision into specific, measurable objectives. For example, if family security is a core value, your goals might include:
Building an emergency fund covering 6 months of expenses
Securing adequate life and disability insurance
Creating a college savings plan for your children
Developing a retirement strategy that provides for your spouse
Finally, align your spending with your values. Begin by reviewing your current spending patterns. Are they consistent with what you claim to value? If environmental sustainability matters, perhaps allocate more of your budget to energy-efficient home improvements. If personal growth is essential, invest in education and skill development.
Implementation Strategies
Now, let's shift our focus to implementing the above strategies.
A great way to start is by creating a value-based cash flow. What does this look like? You are developing a spending plan prioritizing your most essential values while maintaining financial responsibility. This might mean:
Automating savings for priority goals. In 2025, I want to allocate more of my budget toward my Health Savings Account to take advantage of the tax savings and have that money available when my boys or I need it.
Reducing spending in areas that don't align with your values. For instance, I have a goal for 2025 to start cooking more at home and rely less on food delivery apps like Grub Hub and Uber Eats. This helps me achieve my goals of eating healthier and spending less on dining out.
Allocating "value money" for activities that enhance your life purpose
As always, it's a good idea to review how you're doing throughout the year and make any adjustments as needed. Check in quarterly to assess whether your financial decisions align with your values and goals. You can do this by asking yourself:
Do my spending patterns reflect my priorities?
Have my values or circumstances changed?
Am I making progress toward my long-term objectives?
What adjustments would better serve my values?
Another way to keep yourself accountable throughout the year is to build a support system. A straightforward way to do this is by sharing your financial goals with a trusted family member or friend. Of course, working with a financial planner who understands and respects your values is also a great way to stay on track.
At HIGHLAND, we regularly help people stay accountable to their goals, navigate conflicts between different financial priorities, and adjust plans as people's values and circumstances evolve.
Remember that aligning money with values isn't always straightforward. You might face trade-offs between priorities or feel pressured by others' financial expectations. Stay focused on what truly matters to you, and remember that your financial journey is personal. Ultimately, the goal isn't perfection but progress. Start small, stay consistent, and let your values guide you.
As you begin this year's financial planning, reflect on your values before setting specific goals. Let your deepest priorities guide your financial decisions. This approach leads to more meaningful and sustainable financial success – one that enriches your bank account and your whole life.
Joseph Goldy, CFP®, CDFA®, 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.