The best financial decisions are never made in a vacuum. They are made in a context. In fact, they are made in a context that includes three vital factors: where you’ve been, where you are, and where you are going. Let’s take a minute to consider the impact of these three contexts on your financial decision making.
Reflecting on where you’ve been. We all have a background and history with money. Sometimes this is referred to as your “money memory.” It is based on experiences in your past that influence your current beliefs, attitudes, and actions about money. These experiences can either propel you forward in your money journey, or they can cause you to feel “stuck” in a sort of “same old thing” syndrome. Simple questions like, “What is your earliest memory with money?” or “What did you learn about money from your parents or grandparents?” can be a great place to begin accessing the stories and lessons that have shaped your view of money throughout your life. Taking a minute to reflect on these past experiences can help you to identify your current perspectives and perceptions about money as well as to clarify your values, goals, and priorities. This in turn can lead to deeper insights and the ability to align your decisions more closely with what matters most to you.
Reflecting on where you are.
Where you are is the mid-point between where you’ve been and where you’re going. To effectively get to where you’re going, you need to be able to identify where you are. Think about the map used to identify a particular store at the mall. You can locate the store you want to go to easily enough but determining the best way to get there depends on knowing where you are. You need to see the “you are here” sticker to orient yourself properly. A good “money vision” does the same thing for your financial journey. It provides you with the “you are here” position. It’s from this point that you can change directions, observe challenges, assess resources, and measure progress.
Reflecting on where you are going.
This is the forward-looking context. It’s the future. It’s the place to which we are headed. For some people, the future is seen in terms of definite goals and concrete plans. It’s like a gravitational pull that draws them in an established, well-defined direction. For others the future is more like a heading, a leaning, or a perception that is taking shape. It’s like a loosely held opinion that can be clarified, adjusted, or even abandoned as additional information is gathered. Either way, the future context exerts a major influence on the decisions you make and the directions you take on your financial journey.
At R&R Financial Advisors, we are helping young professionals to make solid financial decisions by reflecting on where they’ve been, where they are, and where they are going.
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Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor. BWA and Brookstone Capital Management, LLC are affiliated companies. BWA and R&R Financial Advisors, LLC are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.
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