Is Financial Planning The Key To Happiness?

This was the title of an article that appeared in one of the 'trade mags' we receive, New Model Adviser.

This publication was launched a few years ago to cater for the emerging breed of fee based planners that were seen to be the future, rather than the old fashioned product salespeople that have dominated the financial services landscape.

Reading on, the journalist talked about an organisation called Action For Happiness being launched, and that their 10 key steps for achieving contentment in life are:

1. Giving; doing something for others

2. Relating; connecting with people

3. Exercising; doing something for your body

4. Appreciating; taking time to look at the world around you

5. Trying out; learning new things

6. Direction; making goals

7. Resilience; learn from defeat

8. Emotion; taking a positive approach

9. Acceptance; be comfortable with who you are

10. Meaning; being part of something bigger

According to the journalist, going by this list, financial planning can be attributable specifically to these points or else is an enabler for them.

For example, through financial planning you can give, you can certainly learn resilience when the stock market starts to fall, and the key part of financial planning is setting goals (direction).

Further, when it comes to goals, financial planning is not there just to make people money, it is there to enable clients to have enough money to allow them to turn their dreams into reality.

Financial planning is an enabler and when done right will allow people to take time to relate, exercise, appreciate, try out and find meaning.

Of course, financial planning cannot be a panacea, but reading the 10 steps can bring positivity and focus to the reader.

On a similar theme, another article was brought to my attention that also discussed people achieving their goals in life and being happy.

This pointed to a new website called Bucketlist, which states:

- You know all those things you swear you're going to do before you die? Bucketlist is where you go to keep track of them all

- Bucketlist is a social network, a warehouse of interesting stories, a way to kick-start your life goals

It also states the classic John Lennon line:

- "Life is what happens to you while you are busy making other plans".

What's going on here?! Maybe it's because spring is in the air! I don't know, but it is very interesting to find that the subject of happiness is increasingly to the fore.

When I look at the list of 10 key steps, they certainly resonate with me, and from my own experience number 9 (Acceptance; be comfortable with who you are) is central to making any of the others happen at all!

I suppose I would have to add at least one more key component before a list such as this can be truly meaningful, and that is SECURITY.

I have found that after 25 years advising medics and dentists, that the job I do is to first ensure that clients have a clear picture of their situation, whether they remain fit and well, or if health problems or death were to happen.

Perhaps 90% of the time (especially when cash flow forecasting has been used) they are better off than they thought. So when you then talk to them about the 'higher things' in life such as thinking about what they really want to do, their mind-set is more attuned to these possibilities.

A simple example was when I recently met a married couple, who are both Hospital Consultants. It was clear that, in their early to mid 50s, the prospect of working flat out to age 60 in the NHS was not exactly filling them with joy!

When we talked about going part time to age 60, the reaction was one of - yes this would be ideal, but it would really damage our NHS Pensions wouldn't it?

So, I went through this with them, explaining that the reduction in pension would be not anything like the amount they presumed.

What a difference in body language! Suddenly, the mists were clearing and mindsets were changing.

Having recently compiled their financial plan, it's safe to say that going part time as soon as possible was high on the list. It also makes me constantly aware of how preconceptions can be immensely limiting.

Our clients tend to be 'time poor', and by helping them create a plan that helps them release time to do the things they love doing, but somehow never get around to, is very fulfilling.

When these things happen, and they do regularly, I suppose that this helps us experience our own 1-10!

Here's the links to the resources:

http://www.actionforhappiness.org/

http://bucketlist.org/

The Financial Tips Bottom Line: Really take time to think about what you enjoy doing, like a hobby. When was the last time you indulged yourself?

ACTION POINT

Make a list of the things you want to do - how often is it you get to do these things? What stops you?

Create a timeline - after all, dreams are just dreams without one.