Financial Choices and Matters of the Heart
“No matter how much or how little money you have flowing through your life, when you direct that flow with soulful purpose, you feel wealthy… When you let your money move to things you care about, your life lights up. That’s really what money is for.”
– Lynne Twist, The Soul of Money
I enjoyed reading Melissa Ballard’s article, “Lessons from a Goofy Newfie.” The photo of Melissa with her dog, Norman, is what initially caught my attention. She began with the observation that she and her colleagues have different opinions on whether or not a dog is a good investment. If I’m honest, my husband and I are currently having these same discussions.
Of course, from a strictly financial standpoint, dogs are rarely a good investment. But, when you factor in the emotional rewards, Norman has delivered a huge ROI. Melissa explained that she and her husband adopted their Newfie during a difficult season in their lives, and the companionship, laughter, and joy he has brought has been immeasurable.
Melissa understands that not everyone will feel the same about this “investment,” but to her that’s okay. As a Certified Financial Planner™ herself, she believes that a good financial plan should always include a framework for evaluating trade-offs. She says, “Decisions should always be weighed against top priorities and the ‘why’ behind them.” I couldn’t agree more!
In fact, I believe that all financial planners are well-positioned to serve as “choice architects” for their clients. This term was first introduced to me in the book Nudge: Improving Decisions About Health, Wealth, and Happiness written by well known behavioral economist Richard Thaler and his acclaimed colleague, Cass Sunstein.
They explained that good choice architecture does not interfere with free choice, but clearly lays out options to assist individuals in making decisions that will benefit them the most. They wrote, “A choice architect has the responsibility for organizing the context in which people make decisions.” In other words, good choice architecture will help to “nudge” people in the right direction. As we at Stewardship Advisors walk with you on your journey, this is our intention as well.
Within this context, I can think of no greater service financial planners can provide than a structured process to help their clients gain clarity about their personal values and priorities. Only when these individuals understand what is truly most important to them, can they feel assured that their financial decisions align with those values and priorities, and support their goals in all areas of life.
My heartfelt thanks to Melissa Ballard for her story about her adorable pup and the reminder that when it comes to making financial choices, matters of the heart must be acknowledged and honored.
~Portions Adapted from Money Quotient~
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