The 3 Pillars of Financial PlanningGeneral Behavioral Finance
Financial planning is a nuanced subject. At the end of the day, it comes down to three central tenets:
Each idea works in tandem to help you create the life you want.
Why are values, time, and money our three pillars of financial planning? Let’s explore.
Spend Your Most Valuable Resource (Time) Wisely
Our most precious (and fickle) resource isn’t money, rather it’s time. No matter how much wealth you have, time is the ultimate equalizer. Time with family, friends and loved ones is irreplaceable. Be present and enjoy every moment.
Wealth is not measured solely by your balance sheet. You can save or spend money, but you can only spend time, so spend it wisely.
Let Your Values Guide You
Money is a tool to help you reach your goals — it’s not the ultimate goal. When building your financial plan, it’s important to align your time and values.
Looking to change careers? Wanting to grow your family? Itching to take an extended excursion abroad? These can have a big impact on your financial plan and life.
Spend your money in a way that allows you to live a fulfilled life, propelled by the things that mean the most to you. You don’t have to wait until you have a certain level of resources to make impactful and meaningful choices. Financial planners can help you discover your options.
Financial planning is not a one-size-fits-all process. It is unique to your personality and what means the most to you.
Use Your Money To Enhance Your Life
Money is last on the list, even though it’s often the first thing that comes to mind. Money is not the end all be all — it works in unison with time and values. Structure resources in a way that speaks to your goals, both today and tomorrow.
The first place to start is to see what you're saving and spending. Once you know where money is coming and going, create a spending plan to fit your goals.
The concept is simple, but not always easy in practice. It can be hard to make cuts and reallocate funds. It’s much easier when you have a meaningful goal in mind.
Putting too much focus on money may cloud your judgement. Don't lose sight of the bigger picture. Using money with purpose can help you live your ideal life. It’s time to start looking at your money differently.
Full Circle Financial Planning
Financial planning is about achieving your dreams — it’s as simple as that. Your values, time, and money create a solid path to follow throughout your financial journey.
Take the next step to financial freedom and a sustainable lifestyle and give our team a call today.
Paradigm Advisors is a fee-only financial planning firm based in Dallas, Texas and Fayetteville, Arkansas. Paradigm Advisors provides comprehensive financial planning and investment management services to help clients organize, grow and protect their wealth throughout life’s journey. Paradigm specializes in advising well-established career executives through financial planning and investment management. As a fee-only fiduciary and independent financial advisor, Paradigm never receives commission of any kind. Paradigm is legally bound by certification to provide unbiased and trustworthy financial advice.