When you think of lifestyle planning or financial planning, you probably envision ways to increase your wealth, such as creating a budget, reviewing what’s coming in and going out, and creating a plan to make the most out of your money.
You may consider investing in stocks or bonds or starting a retirement fund. Perhaps you have considered saving for a significant expense, like a home or education for your children.
All of that counts as financial planning. Lately, however, the concept of lifestyle planning is giving financial planning a run for its money.
What is lifestyle planning?
Lifestyle planning is the idea of using your money to get the most enjoyment out of your life.
Lifestyle planning may mean foregoing the maximum financial return in exchange for something you value more. So, budgeting your money in a way that will make you feel fulfilled.
You plan to use your money in the ways that bring you the most joy
If this seems scary to you, you’re not alone. The majority of us were raised with the idea that you should always have money for a rainy day and invest instead of spend.
But lifestyle planning doesn’t mean you should casually squander through all of your savings.
It means taking some time to consider how you want to live your life. Work off that vision by creating a financial plan to make your dreams come true.
Get started with your lifestyle plan
Take some time to do some soul searching. Write down exactly what you want your life to look like.
Ask yourself some questions, where do you want to live? Do you want to live with anyone? Is there a specific type of car you want to drive? What clothes do you want to wear? How do you want to eat? Do you want to travel? If so, how often?
Be as detailed as possible. Picture your ideal life in your mind.
Think about the things that are most important to you
Once you have your vision and are satisfied, take note of where you stand today.
What do you earn now? How much could you earn in the future? Are the things your spending money on important to you?
When you start matching your reality with how you want to live your life, the gaps will become evident. Then you will be able to make adjustments. Maybe it’s not as essential to drive a luxury car or any car at all. Perhaps a career change is necessary.
It’s okay if expensive items are more important to you than you initially thought. You can plan for that now. If travelling is a priority, assess how much freedom of mobility you have in your career.
Whatever it is that you come up with, you can start making a roadmap for how to get there
You won’t be able to reach your goals unless you give yourself the resources to do it, that’s how lifestyle planning affects your financial planning.
Once you know what you want, make it a reality by creating a detailed plan. When you’re ready, enlist an accountant such as Precision to help you make the best financial decisions.
If you have any questions, feel free to Join the conversation…