Embracing Money as a Strategy

Money can be a powerful tool is shaping our lives. There’s no doubt that it is important and required for nearly everything in our economy. But, how we prioritize money defines our relationships with not only money itself, but with our financial health and well-being. Using money as a strategy for living a rich and fulfilling life allows us to focus more on our goals. We can use it rather than make it the sole focus or ultimate financial goal.

What is Wealth?

The traditional perception of wealth is driven largely by our society. Society and media have taught us that if you’re wealthy, you have a large home, new vehicle, perhaps a boat, a vacation home, etc. Societal and media representation of money teaches us that if you’re wealthy, you can indulge in excess. Keeping in alignment with this view, we can only achieve wealth if we have these things. When we view wealth this way, we make money the goal, so that we can have nice things. While this makes sense logically, it’s not the most healthy relationship with money itself.

A more holistic definition of wealth would be what Ramit Sethi describes as “Living your rich life.” When you can more accurately define your “Rich Life”, you can more easily view money as a means, not as an end. A more holistic view of wealth includes aspects that are important to you such as relationships, personal growth, time, health, and experiences. When you prioritize these things in your life, you can use money as a strategy and a tool, as opposed to making it the sole purpose of your desire.

Personal Values & Priorities

Take a moment and think about the things that are most important to you. Reflect on your core values. What are your priorities? The financial decisions that you make should support these things. When you approach wealth this way, you can define your personal rich life, rather than pursuing money as the ultimate goal, then trying to fill an empty void that you’ve created by not first focusing on your priorities and core values.

When money is the sole pursuit, it leads to dissatisfaction, lack of fulfillment, anxiety, and stress. Let’s say one of your priorities is to provide some level of financial security for you and your loved ones. Money can certainly play an active role in that. Then, as you’re working on that goal of financial security, you’ll know where you want to apply that money. However, if you pursue money and wealth as your goal, the financial security of you and your loved ones may get lost in the blinded view of a focus on money and wealth.

Goals, Objectives, Strategies, Actions

When considering how you’re going to approach wealth and finances, consider the following framework:

• Financial Goals
  • Objectives
    • Strategies
      • Actions

Your financial goals are the direction that you want to travel. Like a compass heading. The objectives are how you’ll know you’re achieving your goals – they’re things that you can experience, feel, and measure. Strategies are the ideas and tools that can help you achieve your objectives. Actions are the habits and actions that you’ll actually take – things that you’ll put in your calendar or on a checklist of things that you need to accomplish.

When you state your own financial goals and objectives in terms of things that are important to you, then money becomes the tool, it is related to your strategies. This is a far more healthy relationship with both your goals and your money.

A Rich, Meaningful Life Beyond Wealth

You undoubtedly have areas of your life where wealth can be found and experienced. These are things like meaningful relationships, personal growth, health, well-being, service, contributing to society and charities, etc. You can even list being able to enjoy luxuries and travel with your loved ones and friends. These things don’t have to all be altruistic, they can be driven by your desires and needs as well. These non-financial areas can bring you joy, satisfaction, and fulfillment. When you focus on these things, your life becomes more rich. Money becomes a tool, and your relationship with money changes.

By not making money the sole focus, you can prioritize self-care and mental health. You have a wider field of view. Money now becomes a means, and not an end unto itself. You can maintain healthy relationships with the people and things in your world alongside your financial pursuits.

None of this is to say that money isn’t important. It’s just not the most important thing. It’s a vehicle to better enjoy your “Rich Life”.

Strategies

There are many strategies that can help you to live your rich life.

• Define your priorities: When you can clearly identify your financial goals and align them with your personal values and priorities, you can put your financial pursuits to better work.
• Create a meaningful budget: Your budget should be balanced and reflect things that are important to you. Be sure to put aside money for those things that are in alignment with your values and priorities.
• Focus on Financial Education: Educate yourself about personal finance and wealth strategies. This will allow you to make more informed decisions.
• Cultivate Gratitude: Remember what you have. Embrace your current circumstances while making goals for the future. Making goals does not mean discarding your current blessings. It’s okay to both appreciate what you can about your current circumstances while making plans to improve them. Your true well-being doesn’t only mean getting “more”. It may mean reprioritizing what you already have.
• Regularly Reflect and Adjust: Review your financial goals from time to time. Review your strategies for managing your finances. Review your strategies for both making and spending money. Be sure that you’re focused on what’s truly important to you. Every course requires occasional corrections and adjustments.

Conclusion

Managing your financial goals and prioritizing your well-being by living your own rich life is a process. There’s much to learn, and much to improve as you progress. Focus on making intentional choices with your wealth, regardless of how much you have. Focusing on your priorities and core values and aligning your wealth with hose will help to bring you long term fulfillment.

This blog post does not reflect the views of Ramit Sethi, though much of what he teaches does align with this philosophy. To learn more, and to get a more complete view of Your Rich Life, visit iwillteachyoutoberich.com/.

Photo by Pablo Heimplatz on Unsplash