Finding Purpose Every Day

What is your money for?

That's one of the most important questions that our planning process helps people to answer. If the purpose of life was just to make more money, then no one would ever stop working. The best use of our time and money leads us to more meaningful experiences that helps us grow as individuals, connects us with our loved ones, and makes a positive impact on the world around us.

If the hustle and bustle of life and work have come between you and your sense of purpose, try this three-step process to get back in touch with what matters the most.

1. Reflect on your purpose.

Perhaps the biggest obstacle between ourselves and our sense of purpose is finding time to reflect. Schedule a block of time to simply sit, relax, and think about where you are in your life right now. You might try meditating, journaling, or even light exercise as a way to tune out the rest of the world and clear your head.

So much of our identity is wrapped up in what we do for a living that it's important to think beyond how we earn money. Think about the people who are most important to you and how you work on those relationships. Think about the interests you had when you were younger, the courses you took, and how those things led you towards your career or away from another line of work. Envision a week when you didn't have to work at all and think about how you would spend your time.

After working through these questions, you might find that you're already more connected to your life's purpose than you realized. Or you might identify potential changes that you want to spend more time thinking about, such as building more self-care into your weekly routine, taking online classes to learn a new skill, or even contemplating a new career.

2. Focus on the little things.

Very few people get to spend every second of their day doing exactly what they love to do. The trick to getting through the inevitable drudgery is to cherish those moments when you are putting your talents to their most meaningful uses.

For example, the pandemic era has been particularly stressful on medical professionals. Doctors and nurses have had to contend with challenging work conditions, grumpy patients, staff shortages, and delivering the worst imaginable news. But they've also deepened their bonds with coworkers, exercised all their skills and knowledge, learned new things, and helped countless people through serious illnesses.

Every job has those moments of purpose that we should all spend more time focusing on. No matter what you do, there's an end customer whose life you're making better, a co-worker you're teaching or learning from, a problem that you're able to solve, or a family member who benefits from the fruits of your labor.

3. Take more purposeful actions.

 If your workday is so full that you can't build more purpose into it, you might need to be more mindful about how you spend your time outside of work. Volunteer at a school or charitable organization. Teach or mentor the next generation of professionals in your field. Wake up an hour earlier so that you can devote some extra time to your exercise goals or hobbies. Invest in more purposeful relationships by leaving work at work and focusing your free time on friends and family.

Or, if your current job just isn't improving your Return on Life, start working on a plan that will help you make a smooth transition into your next phase of life.

We want your Life-Centered Financial Plan to connect your life, work, and money in a purposeful way. Schedule a meeting to discuss how we can help you get more from your money and live your best life.

Do You and Your Spouse Have Congruent Spending Habits?

Most married couples take a “divide and conquer” approach to household tasks and chores. One spouse might handle weekly shopping, the other might handle garbage and recycling. One spouse might handle laundry and cleaning, the other might handle yardwork and maintenance. One spouse might drive the kids to school, the other might handle pickup and extracurricular activities.

But household spending and budgeting is one of those responsibilities that’s best tackled together. Money issues are one of the biggest sources of marital tension, and a leading factor in divorces. Here are five ways that you and your spouse can make sure you agree on your household spending, avoid surprises, and maximize the Return on Life ™ your money provides.

1. Have an open and honest discussion.

Many couples assume their attitudes about money are aligned. Then one day the roof needs an emergency repair that taps a savings account, or someone walks in the door with an unexpected splurge purchase (or worse yet, hides it!).

Stressful situations are not the ideal time for a couple to discover significant differences in spending habits. Sit down with your spouse and have a thorough review of your finances and your monthly budget. Find compromises that will allow you to save for the future while still enjoying your present.

2. Understand the total household cash flow.

In many households one spouse often handles all of the bill payments. This can lead to misunderstandings and arguments about where the money goes every month.

Both spouses should understand how much the household spends every month and how your bills get paid. If you’re the one who’s usually in charge of bills, take an hour to walk your spouse through your process. Show him or her which bills are paid electronically, which are paid by check, the monthly amounts, due dates, etc. This won’t just help both spouses understand the monthly cash flow, it will ensure that both spouses can handle household finances in the event of an emergency.

3. Be transparent about all assets and liabilities.

Newly married couples might still have banking or credit accounts that are only in the original account holder’s name. The other spouse might not find out about these accounts until a credit card is maxed out, or a checking account is overdrawn.

Again, the less stressful your reason for talking to your spouse, the more positive the outcome will be. Financial secrets tend to come out at the worst times, compounding stress, hurt feelings, and strain on your budget.

Your spouse should be a cosigner and beneficiary on all of your accounts and vice-versa. If one of those accounts carries a large liability, get out in front of the problem and talk about how to start paying it down. Discuss the ramifications of combining any large individual assets with a tax professional or your financial advisor.

4. Agree on a budget.

If one spouse is responsible for budgeting and bill pay, that person often becomes The One Who Has to Say “No.” No eating out this week. No weekend trip to the waterpark. No new cell phones. No new clothes.

No fun!

Nobody likes being in that position, especially if you’re saying “No” to your children. Eventually, you or your spouse will resent being The One Who Has to Say “No.” You should both understand the household’s monthly cash flow and agree on how your money is – and isn’t – spent.

5. Get help

WFP clients have access to a tool within our financial planning software that help households set and maintain a budget. If you’re a small business owner, Intuit offers a line of bookkeeping and tax prep solutions to fit any needs. Automating select bill payments and regular contributions to retirement and savings accounts can also help to clarify your monthly budgeting picture.

Finally, if there’s a spending gap between you and your spouse that seems impossible to bridge, we can be an excellent resource. It’s important to us that we understand where clients’ attitudes about money come from, how they’ve developed, and how they can diverge between couples. Facilitating this dialogue is key to making sure both people have the best life possible with the money they have…and we can help you do that.

Retire on Purpose to Get the Best ROL

Many new retirees feel lost without their jobs. But often what these struggling folks are really missing is the sense of purpose that their careers gave them. Even if you didn't love everything about your job, work gave your days structure and a sense of meaning as you put your skills to good use and provided for yourself and your family. That's why our Life-Centered Planning process puts such a strong emphasis on preparing you for the transition away from work and into a new phase of life where purpose itself can be redefined, and even deepened. 

Answering these two questions could help you find that purpose and keep getting the best life possible with the money you have in retirement. 

 1. What is important to me?

Under normal circumstances, new retirees often spend weeks, months, or even years taking stock of their lives and reassessing their priorities.

The pandemic, and now the war in Ukraine, have accelerated that process of reflection for many retirees. When the future feels uncertain, we tend to cling to the things that we do feel sure about: our loved ones, our passions, the goals that we want to accomplish.

The good news is that those foundational elements of life are exactly what seniors can build their retirement around. Even if you decide to take a part-time job, you'll have some flexibility to include the people and activities that make your life meaningful in your new retirement routine.

For many, an ideal retirement week mixes smaller, everyday pleasures with progress on long-term goals. You might schedule a couple afternoon lunches or rounds of golf with retired friends around the online classes you're taking to earn your Master's. As you're preparing for that big "bucket list" trip to Europe, you could make a few extra weekend trips to watch your grandkids play baseball.

There's no right or wrong way to orient your retirement around the things that are most important to you, and in many cases the process involves some trial and error. Our life planning tools can help you gain clarity on what really matters. Then, we can filter those things into a draft of your ideal week in Retirement.

 2. How can I use my resources to make a difference?

Three of the most valuable resources a retiree has are money, energy, and time. Many of our clients have told us that the older they get, the more value they assign to those last two.

Which isn't to downplay the importance of money. You should be proud of all the hard work you put into building your nest egg. Now that you're no longer focused on saving and investing, embrace the possibilities for fun, relaxation, connection, exploration, and purpose that your money provides.

 But also think about the causes that could benefit from your generosity, the issues in your community that you could improve with a sustained charitable giving plan, the legacy you could leave by starting your own family foundation.

Then, think about how you can move beyond money. Your favorite local nonprofit might appreciate your gratis marketing or web security skills even more than your monthly support. If you especially enjoyed helping new workers find their feet during your career, you might become a tutor or mentor.

Making strong connections between your resources and what's most meaningful to you will be key to discovering your purpose in retirement. The process isn't always easy, and it rarely follows a straight line. But it can be one of the most rewarding journeys you'll take. We're always available to help you plan for the next step and your ultimate destination.

Plan to Maximize the Most ROL Today and Tomorrow

The last couple of years have been filled with uncertainty and many people have been concerned about their future. This often leads to a feeling of stasis when it comes to how we think about our money. But improving Return on Life isn't something that happens in an undefined future. ROL is an ongoing process that allows you to balance in-the-moment enjoyment with your family's long-term security.

Here are three ways that you can leverage your financial plan to find your balance and start enjoying your money more.

1. Give Yourself Permission to Spend

Old-fashioned financial planning puts a heavy emphasis on saving and investment goals you need to hit on your way to retirement. Folks who follow this model are often extremely focused on "hitting a number" above all other financial considerations. Often that means living more frugally and working longer than they really need to.

A healthier approach might be to pay yourself first by making automatic monthly contributions into your retirement accounts, budgeting for the month's expenses ... and then having a little fun! Yes, a solid financial plan includes setting some limits and monitoring your progress. But within those boundaries you should still have room to replace your old car, build that backyard swimming pool, or take a family vacation you've been putting off for too long.

2. Build-Up Reserves

One of the golden rules of financial planning is: "Plan for what you know is coming and prepare for the unexpected."

To that end, we often advise our clients to create a special savings reserve, ideally in a separate bank account. These are the funds that you will rely on if you or your spouse suffer an unexpected job loss, or if you have a sudden medical emergency, or if your home needs a repair that insurance doesn't cover.

Sometimes these funds are called "emergency buckets," but there could be more positive situations where you'll appreciate having this reserve. For example, perhaps you need a little extra support as you transition to a new career. Or maybe you use reserve funds when you retire early and need to pay health care premiums before you're eligible for Medicare at age 65.

Your reserves should be able to cover 3 - 6 months of your living expenses. Setting a long-term goal and filling that bucket with a comfortable cushion can provide real peace of mind, especially once you retire.

3. Prioritize

If you have the resources to improve your Return on Life now but you don't feel free to enjoy yourself more, you might need to reassess your relationship to your money.

One question we often discuss with our clients is, "What is your money really for?" The ultimate purpose of money isn't to keep earning more of it. Your money is supposed to be a vehicle that takes you from where you are right now to where you want to be. And, hopefully, along the way, you use your money to take some pitstops where you can enjoy the sites, the people, and the activities that make your life worthwhile. Too many people who wait for "the right time" to enjoy the rewards of a lifetime of hard work find that "the right time" never comes.

Are you having trouble connecting your time and your money to your top priorities? The $Lifeline tool can help you prepare for upcoming transitions. Schedule a call and let's start planning to make every stage of your life as fulfilling as possible.