It is so easy to get swept into the cycle of thinking that having more money leads to a happier, more fulfilling life. But wealth isn’t a golden ticket to happiness, and a good financial plan will find the balance between wealth and well-being.
Here are three outcomes from a good financial plan that indicate you are on the pathway to well-being: something that trumps wealth every day of the week.
1. Good Relationships
The leading cause of divorce is issues around money. A good financial plan puts you in control of your money instead of your money being in control of you. When you know what’s happening financially, research reveals that your relationships at home improve, which is kind of logical isn’t it? If you’re on the same page, you won’t be fighting about the mortgage, the spending, the holiday, or the overtime hours.
2. Lifestyle Goals
We all want to improve our lifestyle, but what that means is different for every individual. A good plan will include goals around achieving some lifestyle things that matter to you, whether that is a holiday, a home improvement, learning a language or working less hours. You need something to look forward to within the next 12 months. It’s the reward for sticking to your financial plan.
3. Career Direction
A major driver of personal esteem and fulfilment is the satisfaction (or dissatisfaction) you get from your work. A good financial plan takes into consideration your aspirations and career goals, and what it may take to achieve them. Do you need time off to study or train? Do you need to earn a promotion to increase your income, and if you do, what are you doing to work towards it?
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Written by Brad Fox, CEO of the Association of Financial Planners.