When our team members sit down with clients, a recurring desire that we hear from them is that they want to balance their financial goals with their life goals. We’ve all heard the same advice over and over again — max out your retirement savings, pay down debt, and then save even more.
While the sentiment of setting aside money for retirement goals is one that we can all get behind, the main theme missing from this redundant financial advice is balance.
That’s where Life Money Balance® comes into play. Coined by our founder, Dr. Preston Cherry, the term “Life Money Balance” refers to the idea of letting “your life lead your money, not your money lead your life.” The idea of Life Money Balance® is the cornerstone of Dr. Cherry’s podcast and upcoming book, all about the importance of creating a life that you desire through balance.
While financial goals, like saving for a home or planning for retirement, are crucial for long-term stability, life goals — like nurturing relationships, pursuing passions, and enjoying meaningful experiences — are equally important for our overall happiness and fulfillment.
Achieving Life Money Balance means harmonizing your financial priorities with the desires and dreams that make life truly worth living. It’s about more than just managing your budget; it’s about crafting a holistic approach to life that ensures your financial decisions align with your core values and aspirations.
In this article, we will explore practical strategies for achieving Life Money Balance, helping you create a life that is rich not only in financial security but also in joy and satisfaction. By defining your life goals, establishing clear financial objectives, and developing a plan that encompasses both, you can embark on a fulfilling journey toward a life you genuinely love.
What is Life Money Balance?
Achieving a fulfilling life requires more than just financial stability; it requires a thoughtful approach to integrating your financial decisions with your personal aspirations. This is where the concept of Life Money Balance® stands out from traditional financial advice.
Life Money Balance® is all about striking the right balance between your financial well-being and your overall life satisfaction. It is the art of aligning your financial goals — like saving, investing, and spending — with your life goals, which may include personal growth, health, relationships, and happiness. When you achieve this balance, you create a life that reflects your values and priorities, allowing you to thrive both financially and personally.
While numerous studies have shown that financial well-being significantly impacts overall happiness, merely having money does not guarantee fulfillment. Instead, it’s how you choose to use that money in alignment with your life goals that lead to true happiness and fulfillment.
For instance, investing in experiences like travel, education, or spending time with loved ones can provide more lasting happiness than stacking up material possessions.
On the other hand, neglecting financial health can lead to stress and anxiety, ultimately detracting from your quality of life. Understanding this relationship and how to delicately walk the line between the two is crucial in your pursuit of Life Money Balance, as it highlights the importance of viewing finances not just as numbers on a spreadsheet, but as tools to support a life well-lived.
How Does Life Money Balance Contribute to Happiness?
When you learn to cultivate Life Money Balance, you create a framework for making decisions that add value to both your financial and personal life. This balanced approach can lead to:
Reduced Financial Stress: By aligning your money and values, you can make more mindful financial decisions that reduce anxiety and promote peace of mind.
Increased Satisfaction: When your financial decisions reflect your personal aspirations, you are more likely to experience a sense of fulfillment and joy. Whether it’s investing in your education, pursuing a passion project, or saving for a family vacation, aligning your money and values can enhance your overall happiness.
Improved Decision-Making: Understanding the importance of Life Money Balance empowers you to make better financial choices. Instead of reacting to external pressures or societal expectations, you can prioritize what truly matters to you, ensuring that both your financial and life goals are met.
Holistic Success: Achieving Life Money Balance means redefining success beyond financial metrics. It means considering what a successful life looks like for you — whether that’s career achievement, personal growth, or meaningful relationships — and creating a plan built to bring that vision to life.
Steps to Achieving Life Money Balance
Achieving Life Money Balance is a lifelong journey that involves taking intentional actions and making mindful decisions. Here are the key steps to help you begin to create a life that you love while managing your financial responsibilities effectively.
Take an Inventory
The first step toward achieving Life Money Balance is to take an honest inventory of your current financial situation and personal aspirations. Assess your income, expenses, savings, and debts, and reflect on how they align with your life goals.
It’s important to acknowledge any financial stress or emotional responses you may have regarding money. This self-awareness is crucial for understanding where adjustments need to be made.
Understanding Your Feelings
Money is often tied to emotions, and recognizing how you feel about it can help you make more informed decisions. Ask yourself questions like:
Do you feel anxious about your financial situation?
Are there past experiences that influence your current mindset about money?
Do you get stressed when it comes to making financial decisions?
Understanding your relationship with money will empower you to create a healthier perspective that aligns with your values and life goals.
Weather the Storm
Financial challenges are a part of life, and you can’t always escape them, but resilience is the key to overcoming them. Developing strategies to build resilience can help you weather the storm. Some strategies include:
- Creating an emergency fund to provide a safety net during unexpected events.
- Seeking support from your financial planner to help you navigate difficult times.
- Practicing mindfulness and stress-reduction techniques to help manage anxiety.
By cultivating resilience, you can approach financial setbacks with a proactive mindset to keep them from derailing your life goals.
Taking Mindful Action
Intentional decision-making is a massive part of the equation when it comes to achieving Life Money Balance. Start by setting specific, measurable, and attainable goals for both your financial and personal life. If you dream of more traveling, create a savings plan dedicated to that experience. Or, if you want to invest in personal development, you can allocate funds accordingly. Mindful actions reinforce the idea that your finances should serve your life, not the other way around.
Working with your financial planner to create plans for your unique goals can help you feel fulfilled while also protecting your financial security.
Aligning Your Money with Your Values
To create a true Life Money Balance, your financial decisions should reflect your core values and priorities. Identify what matters most to you — be it family, education, health, or experiences — and consider how your spending aligns with these values.
For example:
- If nurturing relationships is a priority, consider budgeting for family gatherings or outings.
- If personal growth is important, invest in courses or workshops that enrich your life.
Aligning your money with your values is how you make sure your financial choices contribute to a fulfilling life, not just a spreadsheet.
Working Toward Financial Freedom
Financial freedom means having the ability to make choices that enhance your quality of life. Start by defining what financial freedom looks like for you, and how you would get there. This may include:
- Paying off debt.
- Building a robust investment portfolio.
- Achieving a certain level of passive income.
Set long-term financial goals that support your life aspirations, and develop a plan to achieve them. This might involve exploring diverse income streams or creating a budget that prioritizes savings and investments that can lead you to financial freedom.
Mastering Your Successes
Celebrate your financial victories, no matter how small.
Acknowledging your progress reinforces positive behavior and motivates you to continue on your journey toward Life Money Balance. Keep a journal or create a visual representation of your milestones, whether it’s paying off a debt, reaching a savings goal, or making an investment. This practice not only fosters gratitude but also helps you stay focused on your financial and life objectives.
You also want to remember that you are in control of your triumphs (and what those triumphs may look like). By tuning out all the external noise about what triumph is supposed to look like, you get to decide what success looks like for you and your own unique journey.
Achieving Financial Milestones
Set specific milestones that correspond with your life goals. These milestones will serve as stepping stones on your path to achieving Life Money Balance. For example, if your life goal is to travel, a financial milestone might be saving a specific amount for your next trip. If you aim to buy a home, milestones could include saving for a down payment or improving your credit score.
Tracking these milestones will keep you accountable and motivated as you work toward a more balanced life.
Financial Planning for Life Money Balance
Finally, create a comprehensive financial plan that encompasses both your financial and life goals. Work with a financial planner to establish a roadmap that guides your decisions and actions. A solid financial plan should address:
- Budgeting for essential expenses while allocating funds for personal pursuits.
- Saving and investing strategies that align with your long-term objectives.
- Retirement planning that considers the lifestyle you wish to lead in your later years.
When done right, a well-rounded financial plan supports your journey toward Life Money Balance, ensuring that your financial decisions lead you to a fulfilling life.
Final Thoughts
Achieving Life Money Balance® is about more than just setting financial goals or pursuing your lifelong dreams in isolation. It’s a thoughtful approach that aligns your financial well-being with the life you envision, creating a harmony that supports long-term satisfaction and personal fulfillment.
By recognizing where you are, understanding your emotions about money, setting meaningful goals, and celebrating each milestone, you’re laying a foundation for a balanced life that allows you to thrive in every sense.
If you’re ready to transform your relationship with money and begin living a life that reflects both your values and aspirations, our team is here to guide you every step of the way!
Book a call with us today, and let’s work together to start your journey toward Life Money Balance. It’s time to let your life lead your money, creating a future that brings you both financial stability and genuine joy.
