What is wealth?

Can it be measured best by a balance sheet or a life lived without regret?

Are money and happiness mutually exclusive?

What We All Have In Common

You know what you have in common with Bill Gates or Warren Buffett or anyone else that appears on the Forbes 400 list? Everyone on the planet, regardless of background or financial well-being, has just one shot at life.

That’s right . . . we’re all going to be worm food one day.

And while having a lot of money might give you more choices about how you’re able to live your life, you still have choices that you make (consciously or unconsciously) everyday.  You have choices about where you live, how you live, where you work, how you spend your free time, where you direct your financial resources, the food you put in your mouth, how much TV you watch, and well . . . you get the picture. We’re all the captains of our own ship.

In wealth management, my clients and I have meaningful discussions about these choices on a regular basis. OK, it’s rare that I’ll discuss a person’s diet or religious choices with them, and while most of our conversations revolve around finances, it all spills over into other areas of their lives.

Sure, more money equals more choice, but money isn’t a solution. It’s a tool. In my opinion, money is the currency we use to live our lives and spend on things that are important to us. And whether you make $35,000 a year or $35 million a year, you’re still in control of whether your life is filled with “wealth”. Oh, and by the way, you’re the one that defines what wealth means to you. Read that last sentence again – it’s important.

Regardless of income or other financial resources, your definition of “wealth” or a life well lived might be the polar opposite of your neighbors, family and friends.  And that’s exactly how it should be, isn’t it?

In my delivery of financial advice, this manifests itself on a regular basis.

A question I ask that many are surprised by is “How much would you like to save?”

Most people and financial professionals believe that you should save as much as you possibly can. And you’re often made to feel guilty if you don’t.  Advisors often use tactics like fear to make people so afraid of the future, that they can’t enjoy their life along the way.  And remember, we all get only one shot at life.

I help people understand their choices and the impact of the choices they make both today and down the road.  Of course, you need to prepare for and have confidence in your financial future, but do you have to be miserable along the way? I say hell no.

Here’s an example:

Billy & Betty have 2 children, Bobby & Bonnie, ages 6 and 10.  Billy & Betty would really like to spend more time with their young children before they hit their “teen angst” years, but they’re saving every penny they can to pay off debt and/or save in their 401k plans, etc.  This is all so they can retire at their target age of 60.

But what if Billy & Betty could save less today and redirect some of those savings to a kick ass annual vacation with their kids? What would it “cost” them?  Well, maybe they’d have to work until age 61 or 62 or later. Or maybe they have to consider a little more investment “risk” through higher exposure to equities. Or maybe they can’t leave as large an estate behind to Bobby & Bonnie after they pass away.

Again, these are decisions the Billy & Betty control, and we’re not relying solely on the investment markets to make their dreams a reality. It comes down to priorities. Is it more important to Billy & Betty to be able to spend more time with their kids now even it costs them a deferred retirement or impacts other areas of their financial strategy? How about you?  What are your priorities?

And this isn’t just a discussion of spending money now vs spending it in retirement. It could also impact how you educate your children (or grandchildren) or if you can consider purchasing a lake home to use on the weekends or anything else that might be important to you. It can impact your charitable giving decisions, if/how you’re able to help care for your parents or grandparents as they age, and whether you can consider leaving a job that sucks your soul out of you a little at a time to instead pursue something you’re really passionate about.

Vacations cost money. I get that. So does just about everything else.

But financial professionals and the media spend so much time and energy talking about money and  investment returns and “5 Investments You HAVE To Buy Now” and other garbage, that it’s easy to lose sight of the fact that the money has to have a purpose.

So I encourage you to “take the money out” of your wealth management decisions and focus on your life, what you value and what’s important to you and your family.

Because, whether or not you’re wealthy by society’s standards, we all only get one shot at life.

Are you making yours a life filled with wealth (based on your own unique definition)?