What is Life Planning?

Traditional financial planning focuses on making customers as much money as possible through methods like budgeting, tax and investment schemes. Financial life planning takes a more aspirational approach, using life goals and personal ambitions to motivate financial awareness and improved spending habits.

An overview of life planning

Financial life planning was first coined by George Kinder, the Hawaii-based founder and president of the world-famous Kinder Institute. Kinder originally devised three key questions to drive his spin on financial planning.

• If you had everything you needed for the rest of your life, what would you do?
• If your doctor told you that you had 10 years left to live, but you would be healthy as long as you were alive, how would you live it?
• Imagine you have only 24 hours left to live. Reflect on all the things you intended to do, and all the things you accomplished. What did you miss out on and who did you not get to be?

According to Kinder, “This series of questions reawakens the individual’s dreams and then they recognise what they want from life. But with financial life planning they also get a mentor, a guide and someone who knows business who can say to them ‘we know how to make this happen’.”

Goal-seeking

Conversely, the prospect of fulfilling a goal or ambition is incredibly motivational. By reawakening these dreams in his customers, and breaking the down into realistic financial milestones, Kinder transformed the way his customers perceived their wealth and their dreams.

Traditionally limiting, their finances became a source of opportunity when viewed through the lens of financial life planning. For the first time, individuals could see for themselves how their finances could be turned around to help them achieve their overriding life goals, whether these were travel, property, reduced working hours or other lifestyle changes.

The popularity of financial life planning

The popularity and impact of financial life planning can be seen as a response to traditional financial planning, which is widely regarded as dry, statistical and limiting.

In the wake of the financial crisis, public trust in traditional financial advice is low. “Just 36% of those over 60 have sought advice to date – a strikingly low figure given the far wider range of retirement options now available under pension freedom”. Meanwhile, Millenials are left feeling ignored; “according to a study from the University of Oxford, 59 percent of UK Millennials say they don’t feel the products available cater for people of their age”.

It is unsurprising that financial life planning is striking such a chord, inspiring a public disenchanted by traditional financial advice, motivating a generation sick of living from paycheque paycheque.

Read more about our expert opinion on life planning here.

Personal financial life planning

Financial life planning’s key strength is its personal approach. Typically, financial advice is tailored to suit each individual, based on a wide number of factors including their current financial position, their concerns, interest rates, incomings, outgoings, and investment portfolios, for example.

Financial life planning takes this personal approach further. By following individual’s financial concerns to their roots, financial life planning places the emphasis on the person over their finances, empowering the individual to make their finances work for them, as opposed to the other way around. In this sense, financial life planning is the pinnacle of personalised financial advice services.

Expert Wealth Management

Whether you’re seeking pension advice, help with investments, or a wide range of other financial services, we’re proud to offer personalised financial planning services with a life planning approach.

We understand that wealth is a personal subject. We also understand the important role it plays for both individuals and businesses. By helping our clients to understand their wealth better, we help them to better manage and plan their financial situation for the future.

Well-managed finances represent a real opportunity for growth and happiness. Support your business. Invest into your family and friends. Review your wealth with Expert Wealth Management for a stronger, more secure financial situation.

For a deeper overview of life planning, or more information about the financial services we offer at Expert Wealth Management, get in touch today. Call 01993 772467 or contact us online.