The Missing Link: Creating a Values-Based Financial Strategy

For many of us in our 40s, 50s, and beyond, money talk often revolves around paying off the mortgage, growing our nest egg for retirement, or just making ends meet. Amidst juggling careers, family life, and looking after ageing parents, it's easy for talks about interest rates and investment returns to take centre stage.

However, there's a critical component many overlook when mapping out their financial future - their core values and what truly matters most. Having a financial plan firmly rooted in your deeply-held beliefs and principles not only helps you stay true to yourself but can also lead to greater fulfilment and life satisfaction.

So how do you go about creating a values-based financial plan? It starts by taking a step back to reflect on what's genuinely important to you. Is it leaving a legacy for your children's education? Contributing to causes that protect the environment? Pursuing philanthropic endeavours? Or simply having the freedom to spend more quality time with loved ones?

Once you've nailed down your 4-5 key values, the next step is painting a vivid picture of the retirement lifestyle you desire - one that aligns with your value system. Do you see yourself living simply and debt-free to reduce your carbon footprint? Dedicating a portion of your time to volunteering? Or frequently travelling to expand your cultural horizons? With this vision in mind, you can then work backwards to map out the appropriate savings and investment strategy.

Here are some questions to help you kickstart the process:

- What are my long-term goals?

- What brings me genuine happiness and fulfilment?

- How do I envision my ideal retirement?

In today's landscape, it's becoming increasingly possible to invest in a values-driven manner. Environmental, social and governance (ESG) investing allows you to put your money into companies that uphold ethical practices important to you. From sustainable energy firms to corporations championing racial equity, there are numerous avenues to grow your wealth while driving positive change.

At the end of the day, building a values-based financial plan is about honouring your authentic self and channelling your resources towards the people, causes and activities that resonate with you at your core. It's about crafting a financial roadmap that not only achieves your monetary goals, but also nurtures your mind, body and soul.

If this resonates, it may be worth having an honest conversation with a financial adviser on how to better amalgamate your values into your financial strategy. With some guided self-reflection and strategic planning, you can lay the groundwork for a life that balances monetary success with being true to who you are.