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My Statement of Financial Purpose Thumbnail

My Statement of Financial Purpose

This may look like a picture of me with my two sons, but it is actually a representation of my Statement of Financial Purpose.


The Statement of Financial Purpose is something all my clients have. It is developed as part of our REAL financial planning process. The short version of a Statement of Financial Purpose is simply this is a lens in which all financial decisions are viewed through. It is also something I feel every single person who is serious about their wealth needs to have as well as a Vision of Your Ideal Future, but that is another article.


For my clients, their Statements of Financial Purpose begin with “Money’s purpose in our lives is to.” They create the rest of that sentence. There is no wrong or right with their statements. I have clients who make them focused. Others make them broad. Some are short-term, while others go to their future generations.


The example I use as we are going through REAL financial planning is a simple one, but I think it illustrates it effectively. If a client’s Statement of Financial Purpose is along the lines of “Money’s purpose in our lives is to explore the world” and at a future meeting they mention they are buying a house in New Mexico I can ask how that fits in with money’s purpose. Their reaction may be either one where they say are tired of exploring and found the perfect forever home. Or it could be a reminder they still have so much more exploring to do. Regardless, it is an incredibly effective way to make sure big financial decisions are matching up with money’s purpose in their lives. And we aren’t getting distracted by things they don’t value.


Now, the proper creation of a Statement of Financial Purpose is not simply ending the above sentence. No, there is a whole process I take clients through over four separate meetings. That is my True Wealth Plan™. It is intensive, but worth it. However, feel free to take a stab at creating your own Statement of Financial Purpose and if you ever do REAL financial planning you can compare the two Statements.


Again, I firmly believe everyone who is serious about their money and their happiness needs to have a Statement of Financial Purpose. If your financial planner is not helping you create one, it may be time to wonder how they are helping you achieve your goals. Or even properly identifying them.


Oh, you may be wondering my Statement of Financial Purpose. It is simply money’s purpose in my life is to spend time with those I love when I can. My younger son had a brief break from school so we jumped on a plane to visit my older son and spent some time in Rocky Mountain National Park. Unfortunately, my wife could not get away to join us. This is money’s purpose because my dad died when I was 10 and my mom passed when I was 27, so I treasure the time I spend with my loved ones anytime I can. Now ALL financial decisions are viewed through this lens and it is a difference maker with how I make decisions. Hopefully it could be the same for you.