Crafting Financial Resolutions with a Return on Life Perspective

As the New Year unfolds, it’s natural to reflect on the past and set resolutions for the future. We often find ourselves drawn to financial goals – saving more, investing wisely, or finally creating that budget. While these objectives are undeniably crucial, perhaps it’s time to shift our perspective. Instead of fixating solely on the financial bottom line, let’s explore a more holistic approach to wealth: planning our Return on Life.

Return on Life (ROL) is a concept that transcends traditional financial metrics. It’s about aligning your resources and actions with what truly matters to you, enabling you to derive satisfaction and fulfillment from your life, both now and in the future. So, how do you make resolutions that stick and contribute to a higher Return on Life?

1. Define Your Values

Financial resolutions often miss the mark because they lack a deeper connection to our values. Before setting any specific goals, take the time to identify what truly matters to you. Is it family, personal growth, adventure, or giving back? Understanding your values will serve as a compass, guiding you towards goals that are not only financially sound but also personally meaningful.

2. Craft SMART Goals

While most of us are familiar with SMART goals (Specific, Measurable, Achievable, Relevant, and Time-Bound), applying them to your Return on Life is a game-changer. Instead of just setting financial targets, break them down into smaller, actionable steps. For example, if ‘family’ is a core value, a SMART goal could be setting aside a specific amount each month for a family vacation or establishing a college fund for your children.

3. Embrace the 80/20 Rule

The Pareto Principle, or the 80/20 Rule, can be a powerful ally in your pursuit of a higher Return on Life. Identify the 20% of activities or changes that will yield 80% of the desired outcomes. This principle not only applies to financial decisions but extends to various aspects of life – focus on what matters most, and the rest will fall into place.

4. Design Your Ideal Lifestyle

Rather than viewing your financial goals in isolation, integrate them into the bigger picture of your ideal lifestyle. Envision how achieving these goals will enhance your daily life and overall well-being. Whether it’s achieving financial freedom to travel more, pursue a passion, or spend quality time with loved ones, connecting your goals to your desired lifestyle adds a layer of motivation that goes beyond mere financial gain.

5. Continuously Reflect and Adjust

Return on Life is not a static concept. It evolves as your life changes, and so should your goals. Regularly reflect on your progress, celebrate achievements, and be open to adjusting your goals as needed. This flexibility ensures that your financial plan remains aligned with your evolving values and aspirations.

6. Cultivate Habits and Accountability

Making resolutions stick requires more than setting goals; it involves cultivating habits that support your objectives. Identify daily or weekly practices that align with your financial goals and gradually incorporate them into your routine. Whether it’s reviewing your budget, automating savings, or staying informed about investment opportunities, these habits become the building blocks of sustained success.

Additionally, consider enlisting an accountability partner, whether it’s a friend, family member, or a financial advisor from our team. Sharing your goals with someone creates a support system, making it more likely that you’ll stay on track. Regular check-ins and shared milestones not only enhance your commitment but also provide valuable insights and encouragement along the way. Remember, the journey to a higher Return on Life is a marathon, not a sprint – building lasting habits and accountability ensures that your resolutions become an integral part of your lifestyle. 

Final Thoughts

At The Humphreys Group, we understand that true wealth extends beyond monetary gains. Our team is here to guide you in crafting a financial strategy that aligns with your values, enhances your life, and ensures a meaningful Return on Life. Let’s make 2024 the year you not only grow your wealth but truly live a life that reflects what matters most to you. Reach out to get started!

 

Diane Bourdo, CFP®
Diane Bourdo, CFP®

Diane Bourdo is the President of The Humphreys Group. Diane has dedicated her life’s work to helping women make smart financial decisions. For nearly 30 years, she has developed investment management and financial planning strategies that allow her clients to create lives that reflect their values. Diane was named an InvestmentNews 2020 Women to Watch and has been recognized in Forbes, SF Chronicle, NY Times and more for her work and writing.

Diane Bourdo, CFP®
Diane Bourdo, CFP®

Diane Bourdo is the President of The Humphreys Group. Diane has dedicated her life’s work to helping women make smart financial decisions. For nearly 30 years, she has developed investment management and financial planning strategies that allow her clients to create lives that reflect their values. Diane was named an InvestmentNews 2020 Women to Watch and has been recognized in Forbes, SF Chronicle, NY Times and more for her work and writing.

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