SmartMoney Rule™ #2: Goals Tied to Values
I was talking with a client last week and we were discussing what she could do with extra cash she got from down-sizing her house. She has a long-list of things she would like to do to fix up her “new” house that is over 30 years old with many of the original fixtures and appliances. As she ticked off the list (new fence in yard, new kitchen counter tops, recarpet the downstairs, paint some rooms, etc.), I started to think about how she could prioritize the list. She can’t do all the things she wants all at once. Then my client said something very wise (as many of our clients often do when we listen). She said, “Well first, I want to feel safe and secure and then I want to be comfortable.” What a brilliant way to set priorities! First, she will do the things that will keep her safe and secure (new furnace and hot water heater and fix the fence), then she can deal with carpet and paint.
The point is that this wonderful client is very in touch with what’s important to her. Her goals for spending on her new house are tied to her values — safety and security first and then comfort. What about you? Have you looked at how you choose to spend your money energy to see if it’s in alignment with your values? If you’re directing your money to places that make you feel good — whether it’s safety and security or family or experiences — then you’re probably in alignment with your values. But if you say “Ick!” when you think of how you direct your money, then you are probably NOT in alignment with your values. And if this is the case, stop the madness and identify your goals tied to your values and direct your money towards those goals.