Knowing What’s Important

By Tom Kirk

In Chapter two of my book “Are You Worried About Your Money?” I describe in detail a series of questions, the goal of which is to discover what is most important to you and to serve as the foundation of your WealthPlan™. It starts with the simple question, “What’s important about money to you?”, but leads to so much more.  Let me explain.

Consider if I asked a widow with four children what was important about money to her. If the widow told me “to leave behind a large estate,” that doesn’t tell me a lot about her specific motivations. After all, who wouldn’t want to leave behind a large estate?

So then I would probe deeper. “What is important about leaving behind a large estate, to you?”

The answer might be, “Because I want my wealth to have a positive impact on the lives of my children and their families.”

Suddenly, the goal has changed. Instead of leaving behind a large estate for its own sake, we’ve arrived at a more central reason behind the widow’s motivations: she wants her wealth to have a positive impact.

Needless to say, there are entirely different financial strategies present when you’re talking about “leaving behind a large estate” and “having a positive impact.” The two desires aren’t mutually exclusive, but one is more specific – and actionable – than the other.

In fact, the financial solution best suited for this widow’s desires might be not to leave behind a particularly large estate, but rather to find creative ways to give money to the children right now. That way she can see and enjoy the results of her generosity in their lives.

When you know what is most important to you it is easier to identify the actions that will move you toward the future you have in mind and avoid those actions that don’t.

This knowledge of what’s most important to you can also provide the motivation and perseverance needed to get the job done.  In the example above the widow may need to hire an estate planning attorney to create trusts for her heirs and other benefactors.  This can be time consuming and will cost some money, things most of us would just as soon avoid.  But knowing that this will enable her to help her family, and see the positive effects this will have on their lives while she is still alive, can provide the energy to see this through.

At the end of Chapter two of my book are five tips for asking yourself, “What’s important about money to you?”  Please feel welcome to download a free digital copy of the book from our web site.  You can also purchase a hard copy from Amazon.

Our wealth services firm in Satellite Beach, FL – Melbourne/Brevard would love to help you create the life you dream about.  Give us a call today to set up a complimentary consultation at 321.773.7773!