Questions to ask yourself in financial planning

In financial planning, we seek our values and life goals in making decisions.

We then structure our financial plans to help us achieve those life goals while sticking true to our values.

But uncovering these values and life goals are not easy. In fact, we are normally unaware of these values and life goals.

Yet, not following these goals will lead us to an unsatisfactory life.

Therefore, we should take pains to figure out what our life goals are.

Here are 3 questions that help us figure out what we really want out of life.

1. The miracle question

“Suppose that tonight, while you are sleeping, a miracle happens. The miracle is that all the financial challenges that brought you here today are solved. However, because you were sleeping, you didn’t know the miracle happened. When you wake up tomorrow morning, what is the very first thing you notice that makes you realize, ‘Wait, something is different—the miracle has occurred’?”

This question brings our minds away from the tactical questions of “how much money do I have, and how much money should I save?”

It focuses instead on the question of what a perfect life without money problems would be like.

This reveals to us our money anxieties and also our vision of a life where our goals are accomplished without obstacle.

It also sets clear goals, as we can then plan and take concrete actions towards actualising the miracle future we have envisioned in the answer to our question.

2. The best possible future self

“Imagine your best possible future self at work, at home, and at play. What would an ideal version of each self look like?”

This helps us envision what achieving our goals looks like in a realistic manner.

We often set goals like losing weight or being healthy, but we don’t actually have a clear idea of what that looks like.

This question helps us set a clear idea of what achieving that goal looks like.

With that answer in mind, we are both more engaged in achieving the goal, and more aware of what the outcome looks like.

3. Looking back on your life

“”Imagine you are 90 years old, sitting on a porch, looking back at your life. What is the one thing you are most glad you spent your money and time on, and what is the one thing you wish you had started sooner?”

This is a question that makes us look back on the course of our life.

The path to the future is foggy and filled with uncertainty.

But we have to make choices nonetheless.

This question allows us to borrow the clarity of hindsight to assess the kind of life we want to live.

While we might be conservative today, we might regret not taking chances or opportunities if we were 90.

This encourages us to move forward and make the choices that lead our lives towards the kind of history we want to make.

With these questions, we can gain clarity on our life goals and how we can use our finances to achieve them.