125: Modular Financial Planning 02: Developing Your Vision of a Perfect Life

Intro: [00:00:00] Do you think money takes up more life space than it should? On this show, we discuss with and share stories from artists, authors, entrepreneurs, and advisors about how they mindfully minimize the time and energies. Spent thinking about money. Join your host, Jonathan DeYoe, and learn how to put money in its place and get more out of life.

Jonathan DeYoe: Hey there and welcome back to Mindful Money. We’re just at the beginning of our slow review of the Mindful Money Modular Financial Planning process. These modules are like dominoes. Once one of the steps is complete, it leads to the next one and then the next. The idea is by completing all the steps in order, you will be taking all the necessary actions towards your own financial success.

Without ever having done a big, , in-depth comprehensive financial planning [00:01:00] process.

last time we talked about knowing what’s worth seeking. All the things that philosophy, religion, and psychology tell us are the building blocks of a life well lived.

And today we’re gonna build on that foundation of knowledge and talk about developing your vision of a perfect life.

Financial security is not a commodity. It can’t be found in a product. It isn’t available for sale in any way. Financial security is a journey. It’s a path of acceptance, self-reflection, understanding trade-offs, planning and hope getting there is gonna require some thoughtful effort. And no small amount of patients, those who know where they are and where they’re headed, will have the best chance of closing the gap.

They will, in a way make their own luck. Unfortunately, many people find themselves financially lost. They’ve got a sort of a vague notion of wanting to get to a better place, but they fail to acknowledge and accept where they are now, reflect on where they want to go, or determine the best path they should take to get there.

If you feel like that describes your [00:02:00] situation, don’t worry. It’s a process and it culminates in an exercise that’s gonna help you shine a light on your financial future by understanding what’s important to you Now.

The fact is you won’t get anywhere unless you understand where you are today and have a clear picture of what you want your life to look like tomorrow.

In other words, you need to develop a vision of your ideal life. Knowing what’s worth seeking is a vital pre-planning step. Now we get specific to your life. Developing our ideal life vision is the first step of creating a written personal financial plan. This is where we fully develop a picture of the future you’re working towards and determine the specific financial goals you’ll need to achieve to get there.

Developing a vision isn’t fantasy. We’re not daydreaming of a fairytale lifestyle, and it isn’t for just the special few who’ve been endowed with some kind of privilege or raised with wealth. It’s for everyone. It means putting pen to paper and creating a written document that serves as kind of a rudimentary life and [00:03:00] finance map.

Putting your attentions into writing gives you an impetus, , a push needed to start living the map.

So consider your vision as the guiding force behind your financial plan with it. You’ll never have to feel like you’re at a loss when you have a tough decision to make. You can compare the probable outcomes of different choices to the desired outcome in your vision.

Having a well-developed vision of your picture, perfect life can provide profound psychological benefits as well. At its core, this vision acts as a compass, guiding your thoughts and behaviors and decisions towards a future that resonates with your deepest values and aspirations. By defining what a fulfilling life looks like to you, you create a sense of purpose and direction that can be both motivating and grounding.

One of the. Saddest things I’ve ever seen is a wealthy curmudgeon. To have all the resources at one’s disposal and not be able to experience joy is profoundly [00:04:00] sad. It’s borders on disturbing, and we all know someone who has every opportunity available to them, and they’re still worried or angry or upset at life.

This is what happens when someone puts their ladder on the wrong wall. Makes the wrong trade-offs. It’s what happens when somebody trades their joyful life for money or notoriety or beauty. One of the most significant psychological benefits of this exercise is clarity. Life can be overwhelming with all the choices and distractions.

However, when you have a clear vision of your ideal life, it becomes easier to filter out the noise and focus on what matters to you. This clarity reduces indecision. Reduces anxiety allows you to make choices that align with your goals leading to greater satisfaction and a sense of accomplishment about life.

How could you ever live an authentic life if you don’t first develop your vision of what that life might look like? Additionally, a well-defined life vision fosters resilience when [00:05:00] challenges and setbacks arise. As they’re going to do, it’s inevitable for all of us. Your vision serves as a reminder of what you’re working toward.

It provides the strength to persevere, transforming obstacles and opportunities, and this resilience is closely tied to this concept of hope, a powerful psychological state that keeps you engaged and motivated even during tough times.

So having a vision also promotes a sense of control and agency. By articulating what you want your life to look like, you shift from a reactive to a proactive stance.

You no longer feel like life is something that happens to you. Instead, you know that you can actively shape your reality. You design your future. This sense of control is linked to higher levels of wellbeing and self-esteem. And it reinforces the belief that you have the power to create a meaningful and satisfying life all on your own.

Moreover, this developed vision of a picture perfect life can enhance overall happiness and fulfillment. It encourages you to [00:06:00] live in alignment with your values and your passions, which is a key component of wellbeing. When your daily actions and long-term goals are congruent with your vision, you experience a deeper sense of.

Coherence and purpose in life.

In summary, having a well-defined vision of your ideal life can provide clarity, resilience, control, and happiness. It serves as a psychological anchor helping you navigate the complexities of life with a sense of purpose and direction, ultimately, leading to a more fulfilling and meaningful existence.

There are five essential elements to developing your vision, although. Creating a financial plan has many more steps beyond this. I’m confident that if you go through these five steps, you will already feel better about your ability to control the future. So first, you’ve got to identify your personal values.

So finding your starting point is about knowing and refining who you are, what and who matters most to you. What are your passions and desires? [00:07:00] What in life makes you the most happy? Think back to when you were a child. What just lit you up? Your answers to these questions will formulate both where you are and where you want to go.

Identifying what you truly value establishes the incentive You need to not only create a long-range plan, but most importantly to live by it every day. Remember, the road to a better financial future is a marathon. It’s not a sprint. Distractions will sap your energy reserves and leave you wanting only the things that matter most will help pull you through.

They’ll provide you the encouragement that you need along a very long journey.

Aligning your purpose and choices with your values will create guardrails for your life that lead you in the right direction. Number two, you wanna state your meaningful purpose. So after thinking inwardly, I want you to think outwardly that is about your impression on the world.

Consider your talents what you love to do. , the places that you [00:08:00] find bring meaning to your life. contributing, something unique and invaluable to the world, and your happiness depends on making the most of that human potential. The great, , poet philosopher, Oscar Wilde said it this way. He said, be yourself, ’cause everyone else has already taken your meaningful purpose is the definitive answer to the question.

Why am I here? For example, I’m here to make a difference in my community. You don’t have to cure cancer or build a hospital with your name on it to make a meaningful contribution. It doesn’t have to be a big thing. You contribute by showing up as your best self. I. One of my favorite, , poems is this poem by Martha Postlethwaite Called Clearing, and she writes, do not try to save the whole world or do anything grandiose.

Instead, create a clearing in the dense forest of your life and wait there patiently until the song that is your life falls into your own cupped hands, and you [00:09:00] recognize and greet it. Only then. Will you know how to give yourself to this world so worthy of rescue?

When you’re tempted to stray from your financial plan or have trouble making a life decision, this meaningful purpose will act as the beacon that guides you towards the right course of action. What choice best supports your meaning? You will face dark times no matter what choices you make and directions you choose.

The only thing powerful enough to pull you through the darkest of those times will be a heartfelt, meaningful purpose, something you believe in.

Third, you picture your perfect life. If you want to work towards a happier future, you must have a clear idea of what that looks like. What is the set and setting that will enable you to fulfill that meaningful purpose and experience the deepest joy in your life? Think about what makes you the most happy and construct a clear and detailed visualization of your perfect life.

By perfect, I don’t mean a problem-free life where money, for example, is no issue. [00:10:00] Financial struggle is likely a part of everyone’s life. I want to be a billionaire. Doesn’t work , as part of an honest picture that your heart can believe and pursue. Attainability should be a key component of the picture.

that you paint of your perfect life. Otherwise, you’re only going to set yourself up for failure and you know your internal workings. Know that perfect for the purposes , of this exercise means a life that reflects your deepest desires and values. This picture perfect life is not meant to be something you keep only in your head.

You write it down and fully describe what your life would be and feel like with as much emotional clarity as possible, who will be there. What will you do day to day? What will the setting be like at home? Is there art on the walls? Do you have living plants? Are they all plastic? What will the setting be like at work?

Who will you work with? How will you feel when you wake up and when you go to bed at night as the focal point of your financial plan? It’s gonna provide the inspiration for [00:11:00] sticking to a plan day after day. After day for a lifetime. And fourth, you’ve gotta develop your professional mission statement, , because work is such a significant part of our lives.

Your vision should also include a professional statement. This statement is meant to capture who you are in your professional life. At this moment in time, professional is relative. You know, if you’re a nonprofit, volunteer, or a stay at home parent, make that the essence of your statement. The central pieces of information that a professional statement can convey include.

Why you do what you do. You know, the particular work you do, the business you run, et cetera. Who you serve, what the people you serve need from you, , the people you work with, your employer, your employees, your partners, what they can expect from you. While your meaningful purpose describes the fundamental why of your existence, your professional mission, , captures your conscious intention for approaching the central activity of your daily life and holds you accountable to that intention.

Fifth , and finally, you actually set personal goals,

you [00:12:00] list, you take those personal goals and you break ’em down into action steps. The picture of your perfect life describes your ultimate destination, but what are the deliberate steps that you’re gonna take to get there? This brings us to the last step of developing your vision, which is to set a series of goals and plan how you’ll achieve them.

These goals will become the heart, soul, and backbone of your financial plan. In. You wanna name your large life goals, specify the action steps that are needed to reach each goal. Calculate what the goals will cost, and set a completion date for each goal. Probably the best way to approach this step is to start , , from the picture of your perfect life and work backward in order to bring that picture to life.

What are the various discreet goals you need to accomplish? For example, if owning a home is part of your picture, then saving a down payment is one of your goals. Or if getting out of debt is important to you, then making extra payments on debt is one of your goals. As you define your goals, break each one down into a series of smaller corresponding action steps.

Not only must each goal be achievable, [00:13:00] but it must also be compatible with all your other goals. But the timeline you create, undoubtedly, your idea of a perfect life will involve trade-offs. So keep revising your goals, the action steps, costs, and timeline until everything aligns. Essentially, you are laying the roadmap of what matters most to you.

With your vision clearly illustrated, you can concentrate on the things most critical to your happiness and give up the things that are not. Ultimately, your vision should be simple, clear, and specific. It’ll also be dynamic and changeable just like life. Instead of viewing the practice of developing your vision as a one and done exercise, I actually encourage people you to do this on an annual basis as sort of like the beginning of , your annual financial checkup.

To help with this, I actually created the Mindful Money, values, purpose and Goals course, and the link is gonna be in the show notes to provide the template for this annual process. This step alone is a leap towards a more secure, happier financial future. What comes next will be the individual steps [00:14:00] themselves adopting a savings habit, building an emergency fund, eliminating debt, investing for retirement, and so on.

These are the things you need to do to traverse to make your vision a reality. In the next episode, we’re gonna focus on the details of adopting a savings habit. Thanks very much for , , listening, and I’ll see you next time.

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