Aligning Your Values & Your Money: Financial Wellness in the New Year

The new year has begun, and like many of us, you have probably set a few New Year’s Resolutions. And like the majority of Americans, you will probably quit on your resolution within three months.

Womp womp. 

Kind of a downer, right? We feel it, too. 

But it’s the reality – many of us fail to stick to our goals, even when we have the best intentions.

And while we cannot give you advice on how to stick with your health goal, or help you read the 12 books you’ve committed to reading, we can help set you up for success with your financial goals. 

One of the most critical steps to accomplishing your financial goals is ensuring they are aligned with your values… your “why”. 

Aligning your values with your financial goals will help you to stay on track (or get back on track if you get knocked off), and will facilitate greater financial wellness along the way. Because as they say, it’s about the journey, not the destination. 

So let’s dig in and discuss some of the fundamentals of financial wellness, and make a game plan for aligning your unique personal values with your money. 

What is Financial Wellness?

Financial wellness goes beyond simply having enough money. It encompasses a holistic approach to managing our financial lives, taking into account our emotional, mental, spiritual and physical well-being. 

Financial wellness is about having a sense of control over our finances. It is about knowing where our money is going and making conscious decisions about how we spend, save, and invest.

When we are financially well, we are not only focused on the present moment, though we are likely able to enjoy it more fully. We also have a long-term perspective and are able to make decisions that will benefit us in the future. We are able to set realistic goals and create a plan to achieve them. We are also able to navigate unexpected financial setbacks and make adjustments as needed.

The Connection Between Values and Money

Our values play a significant role in shaping our financial decisions. They serve as a compass, guiding us in determining what brings us joy, satisfaction, and fulfillment. By understanding our core values, we can make intentional choices that align with our beliefs and priorities.

Identifying Your Core Values

Take some time to reflect on what truly matters to you in life. What are the guiding principles that shape your decisions and actions? Is it family, adventure, health, spiritual growth, or contributing to a cause you believe in? Identifying your core values will help you align your financial goals with what you find most valuable.

How Values Influence Financial Decisions

Once you have a clear understanding of your values, you can start evaluating how they impact your financial decisions. For example, if two of your core values are "family" and "adventure", you could invest more thoughtfully in family vacations to make lasting memories. We like to refer to these investments as getting a "good return on life". 

Steps to Align Your Values with Your Finances

Now that we understand the importance of aligning our values with our money, let's explore some practical steps to achieve financial wellness.

Evaluating Your Current Financial Situation

The first step is to evaluate your current financial situation. Take stock of your income, expenses, debts, giving and savings. This evaluation will provide a clear picture of where you stand financially and help you identify areas that may need improvement.

Setting Financial Goals Based on Your Values

Once you have a thorough understanding of your financial situation, it's important to set goals that align with your values. These goals can be short-term, such as paying off debt or saving for a vacation, or long-term, such as purchasing a home or planning for retirement. By setting goals that are meaningful to you, you are more likely to stay motivated and committed to achieving them.

Creating a Value-Based "Budget"

As you may have read before, we don't really believe budgets work. So we'll call it a Spending Plan. A spending plan is a powerful tool that can help you align your values with your finances.

As you create your spending plan, allocate your income to reflect your priorities. Consider how much you want to allocate to different categories such as savings, investments, travel, health, home improvement, giving, etc. This is often the first step to aligning your money with your values... in essence, you're "voting with your dollar"... and you're casting a ballot for the life you want to live. 

Maintaining Financial Wellness Throughout the Year

Financial wellness is an ongoing journey. It requires regular check-ins and adjustments to ensure that we stay on track. Here are some tips to help you maintain financial wellness throughout the year:

Regular Financial Check-ins

Set aside time regularly to review your financial progress. Are you on track for what's most important to you? Use this opportunity to make any necessary adjustments or modifications to your financial plan.

Adapting Your Financial Plan as Your Values Evolve

Our values may evolve over time as we gain new experiences and perspectives. As your values change, it's important to revisit your financial plan and make adjustments accordingly. Regularly reassess your goals and ensure they continue to reflect what is important to you.

Overcoming Challenges in Aligning Values and Money

Aligning our values with our money is not always easy. There are often challenges that can hinder our progress. Here are some common challenges and strategies to overcome them:

Dealing with Financial Stress

Financial stress can make it difficult to align our values with our money. It's important to practice self-compassion and develop healthy coping mechanisms to manage stress. Seek support from loved ones, mentors or consider consulting a financial professional who can provide guidance and help you navigate difficult financial situations. 

Balancing Multiple Financial Goals

It's common to have multiple financial goals that may sometimes compete with one another. When faced with competing goals, prioritize based on your values. It may be helpful to break down larger goals into smaller, manageable steps. By taking a systematic approach, you can make progress towards each goal while ensuring alignment with your values.

Conclusion

In conclusion, aligning your values with your money is a powerful way to achieve financial wellness. By understanding the concept of financial wellness, recognizing the connection between values and money, and taking practical steps to align your finances with your values, you can create a life that is both financially secure and meaningful. Remember, financial wellness is a continuous journey, so regularly revisit and adapt your financial plan as your values evolve. May this new year be an opportunity for you to align your values and money, bringing you closer to a life of fulfillment and satisfaction.

ABOUT TRIUNE FINANCIAL PARTNERS

Triune Financial Partners is committed to empowering people with life-changing financial counsel. Triune is an independent firm that values clarity, simplicity, and transparency. We're a fiduciary, which means we always put our clients' interests first. In addition to Financial Life Planning for individuals and families, we also serve 100+ businesses, churches and nonprofits to craft powerful 401(k) and 403(b) plans for their organizations. Whether you're working with one of our Financial Life Planners or setting up a 401(k) plan for your organization, Triune is here to help you thrive financially.

Interested in working with us? Get in touch here.