What's Your Money Mission for 2013?

Happy 2013! A new year, a new start, and a good time to evaluate your goals and commitments for the future. I appreciate the symbolism of the end of one year and the beginning of the next that invites us to take note of our accomplishments and growth, and examine how we want to better our lives.

Financial goals remain at the top of New Year’s resolutions. Pay off debt. Save more. Spend less. Earn more. Stress less. What people really want is to feel in control of their financial situation, and a whirlwind of holiday spending can leave you with a painful money hangover come January. Some people write resolutions, others set goals. The best way to start the year, however, is by defining and examining your life mission, your reason for being and comprehensive life philosophy. And since this is a financial blog, I am going to discuss the practice of actualizing your money mission statement.

What is a Money Mission Statement?

A money mission statement is a written declaration of your values and purpose that is meant to guide you and your family through your financial decisions. Money is not an end unto itself; it is a tool that enables you to live your dreams. So what does money mean to you? Does it provide security, flexibility, access? Does it allow you to provide for your family, explore the world, or help others?

Your money mission statement is unique to you and, unlike goals, does not change. While incredibly powerful on the individual level, it is even more so when you discuss with your spouse/ partner/ kids/ parents and create a family mission statement. I recommend doing this exercise alone for your personal money mission statement, and then again with your family for your family mission statement. Many couples are comprised of opposite money personalities, which can be advantageous to you as a team but a cause of frustration, resentment, and secrecy if not addressed. Be sure to include your kids in this process as well. It is easier to say yes or no to the newest gaming system if you can discuss how that decision fits into the money mission statement that your family laid out together.

Reflection Questions

Begin defining your money mission by reflecting on what is truly important to you, and what you want to accomplish in your life. Here are a few questions to get you started:

When am I most happy?

When do we feel most connected? (For couples/families)

If money were no option, what would I do for a living and why?

How can I best contribute to the world?

Where will I be as an individual in (5, 10, 20) years?

Where will we be as a family in (5, 10, 20) years? (For couples/families)

Where will I/we be financially in (5, 10, 20) years?

What does an ideal retirement look like?

What five things do I value most in life?

How would I like to build my wealth?

How do I want to spend my money?

How do I want to invest my money?

How do I want to give my money?

Reflecting on the questions will give you a good idea of your money values. Now to put it all together as a mission statement! You can use any format that speaks to you, I really like this one:

I/ our family strives to make an impact on the world by ___________. I/ we value __________________. I/we seek to build wealth by ______________. I/we seek to spend __________________. I/we seek to give to ___________________. My/ our commitment to savings allows __________________.

My personal money mission statement:

I strive to make an impact on the world by living a financial stable life that feeds my passion for family and friends, travel, food, and music, and allows me to share my time and resources with others. I value personal relationships, unique experiences, continual learning and growth, and engagement towards social good. I seek to build wealth by creating value for my clients and enhancing their lives while also enhancing the local and global community. I seek to spend consciously on items and experiences that bring me joy and to fully appreciate them. My commitment to savings allows me the financial independence to pursue my passions.

Now the next time you have a financial decision to make, you can use your money mission statement to guide you. If it is hard for you to part with money, it should help you acknowledge when it is time to spend. If you struggle to budget, it should help clarify why you want to allocate your hard-earned funds towards certain purchases over others. Most importantly it should help you gain control over your financial life and align your finances with your values.

Here’s to a health, wealth, and wisdom in the new year! Please share your experience building a money mission statement, I’d love to hear how it works for you.