In today’s technologically advanced world, there are countless systems and apps that will calculate your net worth. These systems calculate net worth by aggregating your bank and investment accounts while subtracting out any debt obligations. While that might be a good description of net worth, is this a good definition of your worth? Money is undoubtedly an aspect of all our lives, and without a doubt, it has importance, but is it truly a measure of worth? Look at it this way, if I were to sit down and ask you as an individual what your worth is, would you answer me with a dollar figure? A person’s worth is obviously much more than their point in time wealth. For example, most selfless acts in the world have little to do with money but are relational.
Rather than answering the question with a dollar figure, your answer would include multiple facets of life, like relationships, accomplishments, challenges, and goals. Your net worth enables you to pursue the things that matter most to you and ultimately helps you achieve the things that define your worth. Therefore, there is an intersection of wealth and worth that we are all trying to find.
So how do you find this intersection, and how will you know you can pursue the things that will give you the greatest sense of worth? A financial advisor is a great place to start, and working with that advisor to develop a financial plan can provide a roadmap for achieving what you set out to do. How can an advisor do this? It first starts with clarity of knowing what is important to you, what truly helps define your worth. Advisors might ask you questions like, “What does your money mean for you” or “What type of legacy do you want to leave.” They can help you identify what ways you want to make an impact and work with you to devise a plan to have the resources you need to make that impact. People who have found this intersection of wealth and worth tend to have clarity of what they would like to do and a sense of how to do it. For example, a financial plan built on these questions would contemplate not only when you can retire but what type of life you could live in retirement.
Of course, a financial plan is not magic, and its mere existence is not enough to manifest the things you want in life, but with a plan and someone to help you along the way, it will be much easier to attain. Like any good plan, it is not something you can set and forget but rather something to review consistently to consider the latest information. This ongoing review promotes peace of mind and gives you the best chance of achieving your goals.