Your Values and Money

Values

This is a word we hear often, but what does it actually mean? According to dictionary.com, “’Values’ is a person’s principles or standards of behavior; one’s judgment of what is important in life.”

Examples of one’s values can include things like loyalty, honesty, service to others, education, creativity, fitness, respect, faith, or compassion. A person’s values are the characteristics and behaviors that motivate and guide their decisions in their career, for their family, and their time; however, how do values impact financial decisions? Does the way a person saves, invests, and spends align with their values?

Values are taught at a young age, typically by both parents and the community. Since it is often taboo to discuss money amongst family and others, very few of us learned to associate money with our values. The two are viewed as completely different entities while the reality is, to make sound and smart financial decisions to improve your well-being, you must have those two working together, hand-in-hand. Even if money values are shared with you by a family member, it is common to not practice those lessons. For example, my grandfather openly discussed his money values with me for over twenty years, but I sometimes found myself being steered in different directions.

Now, the question is, what are your money values?

Take the time to reflect on it. We are oftentimes wrapped up in the busyness of our everyday lives that we neglect the need for self-reflection. I know it is difficult to take the time to think about it, but I often reflect before I go to sleep or as soon as I wake up in the morning. Those times allow me to quiet my mind and gain valuable information about myself.

Once you have reflected, write down the first five values that immediately come to mind. Review the five values, and rank them in order of importance, start to finish. Ask yourself why those values are the most important – do they bring you happiness, excitement, ambition, empathy, etc.? There is no right or wrong answer as every person embodies different values for different reasons.

After you determine your top five, think about how your spending and saving habits reflect those values. For instance, look at a credit card statement to review how you are spending your money. Are there several miscellaneous purchases or high-value purchases? Then review your savings and retirement plans. Do they align with your top five values? Also, think about how you present yourself to the outside world. Whether you like to admit it or not, we pay attention, and even sometimes judge, how people spend their money. Does your public financial persona match your values?

My Personal Values

In my professional and personal life, I have witnessed personal values not aligning with financial decisions. If you value health and wellness, then are you budgeting for healthy foods, regular doctor visits, exercise, and self-care financially? If you value faith, are you donating more than 2% of your income to your place of worship or organizations that support your faith? If you value education, is your child’s 529 plan on pace to cover tuition before heading to college? If you value family, are you saving for retirement to ensure you are not a financial burden to your children? If you value creativity, are you spending money on classes, museums, supplies, or experiences?

Personally, my current top six values are authenticity, love, service, gratitude, hard work, and wellness. Below, I will outline how I align those values with my money habits.

1. Authenticity – It is incredibly important for me to be real in my truth, therefore, I spend, save and invest accordingly. It is easy to get caught up in your neighbor’s new car and the exotic vacations posted by friends on Facebook, but I ensure my family spends, saves, and invests within our means. I have no desire to “keep up with the Joneses.”
2. Love – I value love in many forms, and my love for my three sons is right at the top. The boys’ 529 plans were set up and funded as soon as they were born, and there is a line item in our budget for the boys’ current experiences.
3. Service – To be of service and resourceful to others has been a lifelong dream. My professional years of hard work, sacrifice, and aggressively saving has allowed me to fulfill my dream as an independent financial advisor. I am providing a service I am proud to put my name on, and my years of saving allows me this opportunity with the hopes of being of service through other platforms in the future.
4. Gratitude – After my September 11th experience, gratitude is a value close to my heart. My mindset about money is to be grateful. This is especially hard when the market fluctuates or when one year is not as financially successful as the past year. I try to remain positive, and this allows me to adjust our spending, saving, and investing accordingly.
5. Hard Work – This is a value my grandfathers invested in me. Both came from little money, and they worked incredibly hard to provide for their families. Their mindset was, “if you can’t pay cash, then you can’t afford it”. My hard work has brought me professional success, and as my grandfathers taught me, I make sure my family lives within our means.
   Wellness – I value physical, mental, and spiritual wellness. I eat organic foods, exercise, travel, read, take professional development courses, and meditate. I am a better husband, father, and advisor when I take care of myself, so it is vital for me to budget my money to meet these needs.

To most, money and values are separate; however, it is important to identify your money values and stay true to them to assist in more purposeful saving, investing, and spending. We work hard for our money, so a sense of purpose and meaning attached to our money allows for a more centered and fulfilled life. It is not always easy to stay on track with money values, but the gravity of it should not be underestimated.

In addition, JP Williams is the Founder of Pillar Wealth Group who lives and works near Columbus, Ohio. JP founded Pillar Wealth Group with over 17 years of experience and specializes in financial planning, retirement planning, investment management, risk management, college planning, and estate planning. Contact us today to get started with your financial wellness journey. Contact us today to schedule an introductory meeting!