As I sit here in my office, surrounded by year-end portfolio statements and tax planning documents (metaphorically, of course—we are a digital-only office…duh), I’m reflecting on what truly matters in financial planning. After twenty years of guiding clients through their financial journeys, I’ve learned that it’s rarely only about the numbers—it’s about the stories they tell and the lives they represent.
What really matters is the stories. Can we help clients create more stories? I sure hope so. When a client pays off debt, the look on their face is priceless. When we show a client that she is going to be just fine in retirement, the peace in her eyes means more than any rate of return I could have shown her. This year it really hit me: we’re not just planning finances; we’re planning freedom.
As we step into the new year, I want to move beyond the standard “max out your 401(k)” advice (though it might be a good idea). Instead, let’s talk about what I call “soul-centered financial planning.”
First up: Your emergency fund isn’t just a number – it’s your peace of mind account. I’ve watched too many clients white-knuckle through life’s surprises because they followed the “invest everything” mantra. That 3-6 months of expenses sitting in a “low-yield” account? It’s actually yielding something priceless: sleep at night. This year, give yourself permission to build that cushion without guilt and realize that growth isn’t the goal.
Next comes what I call the “joy budget.” After years of watching clients defer happiness for some distant future, I’ve started encouraging them to allocate funds for present joy…within reason of course. YOLO can also get you in trouble. Take the trip. Go golfing. Invest in your dreams. You can’t take it with you.
We have some hard conversations in our business. The hardest conversations I have aren’t about market volatility – they’re about lifestyle creep. That stealth wealth-eroder that has us upgrading our cars, homes, and wardrobes to match our rising incomes. This year, I watched a client downsize to a smaller home, invest the difference, and discover she had never been happier. Sometimes less truly is more.
But here’s what really keeps me up at night: seeing people chase financial goals that aren’t truly theirs. We’re bombarded with messages about what success should look like – the luxury car, the vacation home, the early retirement. But I’ve seen millionaires miserable and schoolteachers content. The difference? Alignment between their money and their values.
As we enter this new year, I’m challenging my clients (and myself) to ask deeper questions. Instead of “How can I make more money?” try “What do I want my money to do for me?” Rather than “Am I saving enough?” ask “What am I saving for?”
The truth is, every financial plan is a story waiting to be told. Some are epics of generational wealth transfer, others are tales of debt recovery and redemption. Some are adventures in entrepreneurship, while others are steady journeys toward a simple, sustainable life.
And if by March your carefully crafted budget has gone slightly sideways? That’s not failure – that’s being human. The goal isn’t perfection; it’s progress. It’s about building a relationship with money that bends but doesn’t break, that grows with you rather than constrains you.
Here’s to a year of intentional financial choices, of money aligned with meaning, and of finally accepting that maybe, just maybe, your net worth isn’t the best measure of your life’s worth.
Now, if you’ll excuse me, I need to go review some tax-loss harvesting opportunities. But this time, I’ll remember to ask not just “How much can we save?” but “What will these savings enable in your life?”
Because at the end of the day, that’s what financial planning is really about – not just growing wealth, but growing well-being.
– Posted by Grant Ellis, Owner