We follow a methodology we refer to as financial life planning. We like to say we put life into financial planning. It obvious leads to a question about what is financial life planning. Financial life planning is a holistic process that applies traditional financial analysis within a framework of the individual’s life and total resources. At the core of financial life planning is an emphasis on asking meaningful questions.
We first ask our clients and prospects whether they are getting the best life possible with the money they have? Traditional financial planning often ignores the why behind your financial decisions. So why is financial life planning different? Financial life planning is comprehensive financial advice that centres around your goals and values.
Financial life planning might include:
- Sustainable investing to align your money with your values
- Charitable legacy planning to maximize your impact on causes you care about
- Early retirement planning to avoid burnout and give you more family time
- Business planning to start a passion project
Financial life planning realizes that money is a tool, not a goal. And when you’re financially secure, you can focus on what really matters.
It is important to understand if you are stressed about your finances. To most people, the answer is yes. Many people are not even aware of this. It leads to whether they worry about what their financial future might look like if you don’t take a more proactive approach to your plans and goals? If yes, then you are not alone. Many Canadian professionals and families worry about their ability to weather financial stress and move toward goals that will give them financial freedom. Working with a financial life planner can alleviate these concerns and give you the confidence to know that you’re planning today for a better tomorrow.
Financial life planning is a holistic method for establishing financial and personal wellness. In addition to the numbers side of your current financial situation, financial life planning considers your values, goals, and aspirations to craft a plan that will help you live the life of your dreams.
Financial life planning is also a dynamic process. A financial life plan isn’t simply created and then executed. A financial life plan is a flexible plan that is revisited often throughout your life. It evolves as your circumstances change, as your goals change, and as your values shift depending on the stage of life you’re in.
Benefits of a financial life plan
A financial life plan differs from traditional financial planning in significant ways. Whereas traditional financial planning focuses solely on quantitative information such as income, expenses, retirement savings, and taxes (among other things), a financial life plan takes a more comprehensive approach to financial planning. A financial life plan considers an individual’s values, money mindset, money insecurities, attitudes around risk, and spending habits. The combination of both quantitative and qualitative information allows you and your financial advisor to create a financial life plan that aligns your financial life with your closest held personal values. Examining the qualitative aspects of your financial situation also helps your advisor create a plan that resonates with you.
The benefits of having a comprehensive financial life plan cannot be overstated. Some common benefits include:
- Clarifying and prioritizing your goals based on your values
- Financial peace of mind, balance, and freedom
- A game plan to live within your means
- A meaningful retirement or financial independence goal that’s achievable
- Customized strategies to reach your goals realistically
A financial life plan is tailored to fit your lifestyle and give you greater control over how you achieve the life of your dreams. Like your cash flow, a financial life plan will give you clarity about where your money is going and where you want it to go. Rather than restricting your spending, a financial life plan gives you control and frees you to make informed decisions with your money.
Who needs a financial life plan
Many people mistakenly think that the only people who need a financial life plan are high-net-worth individuals. This could not be more inaccurate. 62% of Canadian adults are concerned about their retirement. Everyone who works hard and dedicates themselves to decades of good decision-making and planning deserves a comfortable retirement, but only 36% of Canadian adults would turn to a financial services professional for financial advice. Perhaps this is a shortcoming of the financial services industry, which is why we make a distinct effort in serving underrepresented groups in financial advising, such as millennials and women, and in diversifying the way we serve our clients.
So again ask yourself this question. Do you need a financial life plan? You could benefit from a financial life plan if you are…
- uncertain about how to prioritize your goals
- not sure how much to save for retirement
- uncertain how to pay off your debt most effectively
- anxious about your retirement savings
- wanting to feel more control over your finances
- committed to gaining a better understanding of your financial decisions
- finally ready to take a more proactive role in your financial future
The bottomline
Financial life planning focuses on the human side of financial planning. In planning, Northern River Financial attempts to discover a client’s deepest and most profound goals through a mindful based process of structured and non-judgmental inquiry. Using a mix of professional and relationship skills, we inspire clients to pursue their aspirations, discuss and resolve obstacles, create a concrete financial life plan, and provide ongoing guidance as clients accomplish their objectives.
Would you benefit from this type of approach? If this sounds like you, it’s time to take a step toward financial peace of mind. We specialize in creating a customized financial life plan for each of our clients. Information is always free and we communicate with inquirers in the method they feel most comfortable with. It starts with a conversation to see if our approach fits your needs. Keeping yourself informed about your financial planning and advice options is Keeping Life Current.
