Don’t Let Your Financial Net Worth Dictate Your Self-worth

Your financial net worth isn’t your self-worth. But oftentimes, we let the money matter impact how we view ourselves. Many of us have complicated feelings when it comes to money, from fear and scarcity mindset to abundance or reckless mindset, and anywhere in between the spectrum. We are also more influenced by our parents (or grandparents), our experiences, and other money myth, than the true financial knowledge. After all, the personal financial planning is still a relatively new field of study. The Certified Financial Planner (CFP®) designation came about in the recent a few decades. Most of us are still trying to catch up with this new development.

Today, the technological advancement in personal financial planning world has made it a lot easier to set and monitor everyone’s personal financial goals. But before we start using the planning software, we need to address some matters on the fundamental level: what we want financially and why we want it?

  1. What do you want and why?

How many times have we questioned our self-worth when we saw on social media or on the news, some celebrities or acquaintances show off their fabulous wealth? We went straight to envy, jealousy, resentment, and self-doubt… without even thinking about what we wanted and why.

So the first step to giving yourself the gift of financial peace of mind and not letting money dictate who you are is to ask “what do I want and why”.

It could be “ I want to retire at 50 so I can travel often while I’m still relatively young and strong”

“I want to save enough so I can take a year off for a sabbatical without any financial strain”

“I want to have a beach house because I love spending every summer by the beach”

Or simply “ I want to live a debt-free life, in the countryside, growing vegetables and raising chickens”…

We don’t all want to be movie stars or tech billionaires. That’s not realistic, practical, or truthful.

  • How can you get what you what

This is where the various financial planning tools become helpful. I use Right Capital. You can plug in the life you want in the software, the short-term, mid-term, and long-term goals. You can then allocate your existing and future funds towards the different goals. You can even trade-off between the short-term and long-term goals because sometimes, you want to live a bit and have some fun.

The software can do a comprehensive analysis for you. With proper planning in each bucket, you can both live in the now with peace and happiness and reach your long-term goals.

To make it easier to reach your financial goals, you can set up automatic savings (directly from a checking to a savings account) and automatic investing (directly from checking or saving accounts to an investment account and use the Dollar Cost Averaging investment method).

Along with tax and investment planning, you get to see what your next 60 years of cash flow and financial picture look like.

How cool is that—you get to look into your future!

  • Find an accountability partner

After you figure out what you want and why, also how you will get it, you should find an accountability partner. This can be your family or friend if they can be effective.

Oftentimes, it’s worth paying a small fee to a professional to hold you accountable to make sure that you stay on track and live the life you designed. Most CFPs offer this type of professional service. They are trained to help you with personal financial planning. It doesn’t hurt to give it a try.