“FINANCIAL success” is a term that by itself has been traditionally limited to the exterior function of money, focusing on an individual’s financial needs so that we can function in life (for example, debt management, adequate insurance, sufficient saving for goals, etc).
A growing net worth, steady income with stable cash flow, good financial ratios and solid credit score are indicators of “success” in society.
Aligning our financial plan with our value and life purpose is as essential as analysing insurance plans, tax situations or managing investments.
Given the important role money plays in life, some financial planners have naturally evolved from helping clients function financially to assisting clients in effectively aligning their money with their life aspirations.
They focus on assisting clients in addressing the emotional and non-tangible aspects of money is related to purpose in life, accomplishment, supportive relationships, contentment, fun, recognition, appreciation, etc.
Futurist and financial planner Richard Wagner, J.D. names this trend “interior finance” or more commonly known as “financial life coaching”.
Financial life coaching makes you think about what is really important to you. The people whom you love. The causes that bring meaning to you. The activities that keep you energised. The opportunities for learning and self-discovery that enrich your understanding of the world and yourself.
Money management
Have you ever watched a hamster running in a wheel? All that running and effort – days after days – without really getting anywhere?
Many of us feel the same way about our money. If we focus on our work and financial planning is just to have enough money, we will never feel like we have enough.
There’s always another ringgit to chase and another way to save more. But for what? Is having more and more money something that we really treasure?
Does having more make running on the wheel worth it? Thus, the critical question we should ask ourselves is, “Am I managing my money in a way that’s improving my life?”
We don’t want just to “have enough money”. We want to live the best life possible with the money we have. Whether our official retirement age is 55 or 60, only we ourselves can decide when we want to retire and how we want to retire.
In fact, we may want to reconsider the meaning of retirement from the traditional sense.
Many people who have retired are not altogether happy with their decision. The truth is that traditional retirement doesn’t work for everyone.
Instead, people want the freedom to pursue their own goals and passions. They want the autonomy to call their own shots, to do what they want, when they want, and where they want.
This shift from functioning to flourishing is evident through the rise of life planning and financial coaching.
For individuals who wish to achieve balanced and healthy financial lives, combine the interior, emotional aspects of finance with the exterior function of money, then engaging in financial life coaching may help.
Lim Hooi Hooi, CFP is the co-founder of Coreplus Advisory Sdn Bhd and a certified member of the Financial Planning Association of Malaysia (FPAM).
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
